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Enterprises Flock to Cloud Services in Singapore, Malaysia
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
ISG Provider Lens™ report indicates that cloud adoption in Singapore and Malaysia is accelerating due to the COVID-19 pandemic and ongoing digital transformation trends. The market for data center services is developing, with both global and local providers thriving. Key drivers for this growth include increasing automation needs, sustainability initiatives, and edge computing. However, there is a notable shortage of IT skills in the region. The report evaluates 32 providers, naming Singtel and Telekom Malaysia as leaders in multiple service categories.
Positive
Rapid cloud adoption in Singapore and Malaysia due to digital transformation.
Increased demand for data center services and solutions in the region.
Growing focus on automation, sustainability, and edge computing.
Singtel and Telekom Malaysia recognized as leaders in data center services.
Negative
Global shortage of IT skills in Singapore and Malaysia, posing challenges for growth.
Pandemic effects have accelerated a regional trend toward digitization for greater efficiency and productivity, ISG Provider Lens™report says
SINGAPORE & KUALA LUMPUR--(BUSINESS WIRE)--
Enterprises in Singapore and Malaysia are adopting cloud computing at a rapid pace, motivated by the growth of digital transformation and other trends in the region, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services & Solutions report for Singapore and Malaysia finds an increasingly developed market for data center services and solutions in the region, with both global and local providers growing strongly. Cloud adoption increased with the COVID-19 crisis, but it was already in motion before the pandemic as part of widespread IT modernization.
“Digital transformation is on the rise in Singapore and Malaysia and will continue to grow,” said Deepraj Emmanuel, director, ISG Asia Pacific, in Singapore. “Private and hybrid/multi-cloud providers are helping make this possible.”
The rising demand for cloud products and services is linked to several enterprise IT trends in the region, including growing needs for automation, sustainability and edge computing, the report says. Both service providers and clients are quickly adopting platforms to automate cloud operations using AI and machine learning.
A major push for sustainability by both the public and private sectors in Singapore, likely to spread to Malaysia, is shaping companies’ decisions about data center locations, energy sources and service providers. Edge computing is emerging to address security, network latency and IoT applications.
For regulatory, cultural and geopolitical reasons, Singapore and Malaysia operate as separate markets for cloud solutions and services, so few providers have coverage in both countries. ISG expects providers to accelerate the creation of complex partnerships for national coverage, global connectivity and scale. In Malaysia, data center development is expected to move beyond Kuala Lumpur and the Cyberjaya district to other locations with cheap and reliable energy and proximity to Singapore.
The global shortage of IT skills is a particular challenge in Singapore and Malaysia, with technology unemployment at or near record lows and immigration reduced due to COVID-19, the report says. This crisis will require more investment in automation and a rethinking of how to fill the skills gap.
The report also covers other trends in the region, including the highly competitive market for managed services, the growing importance of physical and cybersecurity practices and the continued relevance of colocation services.
The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services & Solutions report for Singapore and Malaysia evaluates the capabilities of 32 providers across three quadrants: Managed Services, Managed Hosting and Colocation Services.
The report names Singtel and Telekom Malaysia as Leaders in all three quadrants. It names Fujitsu, Kyndryl and NTT DATA as Leaders in two quadrants each and Accenture, Atos, HCL, Infosys, Starhub, Telstra and Wipro as Leaders in one quadrant each.
In addition, Equinix and Telstra are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services & Solutions report for Singapore and Malaysia is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.
