IDC Expects IaaS Private, PaaS Private, and SaaS Asia/Pacific spending to increase further in 2020
COVID-19 has accelerated the adoption of digitalization technology and services. Spending on cloud services and technology has been much less affected than spending on other areas. For overall ICT spending in Asia/Pacific, there is a definite intention to reduce budgets in the short term – at least in 2Q20.
At this stage, some countries are signaling that they will still have a modest spend growth for full year 2020. IDC Asia/Pacific’s report titled Cloud and COVID-19: Asia/Pacific (Excluding Japan) examines the latest data on end-user intentions regarding the impact of COVID-19 across IT and cloud spending.
Figure 1: Change in Demand for Cloud Software in APEJ
“The pandemic has brought opportunities for some organizations to take advantage of changed operating conditions to address the weaknesses on what projects to deliver under the current conditions,” says William Lee, Research Director for Cloud Services at IDC Asia/Pacific.
As organizations transition to the Next Normal, increased demand for public cloud services has solidified and is likely to be maintained. Asia/Pacific countries are emerging from the immediate reactive state and are building plans for recovery – with some countries moving faster than others. Moderate growth can be expected across all countries, with the exception of New Zealand which will generally remain unchanged.
Other key highlights of the report:
IDC’s Cloud Services: Global Overview is a unique research service that provides a “rolled up” view of the entire cloud services market. It provides a wide-angle complement to other IDC research programs that provide drilldown views of specific cloud markets and topics such as IaaS, PaaS, SaaS, private clouds, and edge. This program analyzes how quickly cloud services are being adopted across customer segments and the organizational barriers to faster adoption. It also details key customer expectations about cloud benefits/concerns as well as forecasts how cloud will impact vendor business models and service offerings.
*Note: Asia/Pacific excluding Japan