APAC organisations immersed in cloud but not strategically: VMware
By Digital News Asia November 15, 2022
- Organisations fast approaching a plateau in their multi-cloud usage
- Recommendations for businesses to become a cloud smart organisation
A new study by Vanson Bourne and commissioned by VMware found that while many organisations in Asia Pacific are fully immersed in a multi-cloud environment today, a large percentage lack a strategic approach to multi-cloud.
In a statement, the cloud service provider said the survey revealed that 70% of respondents in Asia Pacific are already using multiple public clouds with only 38% stating their multi-cloud strategy is fully defined.
What’s more challenging is that Asia Pacific organisations surveyed appear to have a disconnect between their applications and cloud strategies, it said.
It added that a whopping 90% of respondents from multi-cloud organisations report that they have apps built to run across multiple clouds, allowing them to increase app dev, devops and IT productivity accordingly and get products and services to market faster.
The survey highlighted that across the board, cloud smart organisations, defined as those with smart business environments to innovate and scale securely, and across multiple environments are performing better than their peers in the three other groups identified in the report.
This includes trailing, cloud beginner and cloud intermediate, the research noted.
Additionally, the research showed that cloud smart and cloud intermediate organisations are more likely to originate from Asia Pacific than anywhere else in the world.
Paul Simos, vice president and managing director for Southeast Asia and Korea at VMware, said the findings are clear, that organisations in this region are committed to being cloud first, but many are fast approaching a plateau in their multi-cloud usage.
“Instead of adopting a cloud smart approach, many organisations are in risk of entering a state of cloud chaos, losing visibility and control as more and more of their apps and data are spread across more and more clouds.
“Therefore, organisations need to make their investments in multi-cloud work harder,” said Simos.
He added that it is time for organisations to shift gears and transition to a cloud-smart strategy not just to weather what is to come, but to continue getting the scale of productivity and profitability they have been enjoying when they first moved to the cloud far into the future.
According to the research there are six key areas that organisations across Asia Pacific need to consider in the next phase of the journey towards becoming a cloud smart organisation. This includes:
- Unlocking revenue and profitability potential: 97% of cloud smart organisations across the Asia Pacific region report that their multi-cloud approach has positively impacted their revenue and profitability;
- Transforming data into money: For APJ organisations surveyed 30% report data monetisation as a significant source of revenue versus 22% two years ago. Therefore when looking at the segment of cloud smart organisations, 41% report data monetisation as a significant source of revenue currently, with 75% anticipating this to be the case by 2027;
- Demystifying visibility to control on cloud costs: The lack of visibility and control over multi-cloud operations is directly impacting the bottom lines of businesses. The research shows that trailing organisations are more than twice as likely to report a struggle with cloud costs than cloud smart organisations (32% to 70%);
- Tackling data sovereignty and management: Multi-cloud clearly helps organisations address the growing data sovereignty considerations, with 92% of cloud smart enterprises saying it’s easy to manage data in whichever nation it resides as compared to 63% of trailing organisations. Further to this, 89% of cloud smart enterprises report it is easy to secure the data in whichever nation it resides compared to 60% of their trailing counterparts;
- Strengthening security and control: With more clouds comes more potential entry points for bad actors, prompting organisations to cite ‘increased cybersecurity risks’ as the most likely challenge associated with multi-cloud at 42%. Given the lack of visibility and control over their multi-cloud environment, it is perhaps not surprising that 61% of APJ organisations surveyed say they need to improve their cybersecurity strategy in order to successfully secure apps and data across multiple clouds; and
- Bridging the talent gap: 46% of respondents agree their organisation does not have the skills inhouse to achieve a multi-cloud approach, and even cloud smart organisations are struggling with this issue, with 42% saying the same.
The research said having a clear multi-cloud strategy is crucial, with 91% of Asia Pacific respondents acknowledging it plays an important role when it comes to recruiting and retaining the best talent.
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