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Asia/Pacific Reveals its Top Predictions for Cloud in 2023

IDC predicts that complexities of digital business and IT budget pressures will drive 60% of Asia-based 1000 organizations (A1000) by 2024 to increase FinOps maturity with granular chargebacks, benchmarking, and multiple cloud optimization..

Organizations in the region have accelerated digital transformation (DX) and the adoption of cloud in the past two year. They have adopted various cloud operating models as the core foundation to help them pivot towards a digital-first economy. With strong headwinds on the horizon and recessionary pressures rising, business will seek to derive greater benefits from their cloud deployments beyond typical gains such as IT productivity.

“Asia/Pacific organizations are maturing in their use of cloud, data and new technologies to drive greater efficiencies and deliver on innovation and value creation for the business. These will increase their focus on automation, cloud management, FinOps, sustainability and cost management,” says Daphne Chung, Research Director of Cloud and Software, IDC Asia/Pacific. “There are growing concerns though that are placing greater pressure on budgets which require organizations to ensure the greater alignment and collaboration between IT and business in order to deliver on achieving business goals.”

IDC’s Worldwide Cloud 2023 Predictions – APEJ Implications provide guidance to IT and business leaders on cloud trends in the near future.

#1: Sovereign Cloud: By 2025, 30% of the A2000 will move 10% of their workloads to a sovereign cloud provider to address data, technical, and operational requirements.

#2: Autonomous Operations: By 2027, 45% of companies will save over $1 million a year using event-driven automation to improve resiliency, reduce repetitive IT ops tasks, and moving to a fully autonomous digital infrastructure.

#3: Deployment Consistency: By 2025, 75% of organizations will favor technology partners that can provide a consistent application deployment experience across cloud, edge, and dedicated environments.

#4: Multicloud Data: By 2025, 40% of the A2000 will adopt multi-cloud data logistic platforms to enable active data migration between hyper-scalers to optimize costs, reduce vendor dependencies and improve governance.

#5: Network Transit: By 2026, 55% of enterprises will adopt cloud WANs and transit networks to improve the availability, latency, performance, reliability, and scale of their cloud and edge applications and workloads.

#6: Specialized Infrastructure: By 2027, 70% of organizations will invest in specialized cloud-based performance intensive computing environments to gain agility, scale and faster business insights.

#7: Cyber Recovery: By 2027, 30% of the A2000 will adopt cyber recovery as-a-service (CRaaS) as ransomware attacks increase and require sophisticated recovery strategies not readily available through DIY efforts.

#8: Cloud Sustainability: By 2024, 60% of IT buyers will make their decision to work with a cloud services provider on their ability to demonstrate how they can help reduce their client’s indirect carbon emissions.

#9: AI-Assisted Development: By 2027, AI will dramatically increase developer velocity by automatically generating code to meet functional business requirements for 70% of new digital solutions in production.

#10: Cost Optimization: Complexities of digital business and IT budget pressures will drive 60% of A1000 companies by 2024 to increase FinOps maturity with granular chargebacks, benchmarking, and multiple cloud optimization.

These predictions are discussed in greater detail in the new IDC FutureScape report, IDC FutureScape: Worldwide Cloud 2023 Predictions – APEJ Implications (IDC #AP49168423). Each year, IDC releases its Top Predictions through its IDC FutureScape reports to give a crystal ball view of what is ahead for the rapidly changing ICT industry. These predictions have been used to shape the strategies and business objectives of technology leaders and business executives in the next 1-5 years.

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