Digital transformation in Indonesia is no longer just a buzzword: Pure Storage
By Yunnie Marzuki July 28, 2017
- Up to 70% of 200 businesses in Indonesia generate revenue from digital services
- Security, availability, and performance hold Indonesian companies from adopting cloud
ALMOST 70% of 200 businesses in Indonesia generate revenue mostly from their digital technology stream, higher than the average of 46% in Asia Pacific and Japan, according to the latest findings by independent all-flash data platform vendor, Pure Storage’s global survey titled Evolution.
While Indonesia as a country remains in the nascent stage of digitisation, it appears that connected businesses are increasingly betting big on digital. It’s not only increases revenue of a company, but also contributes to nation’s economic growth.
“It’s clear that digital transformation is no longer just a buzzword, it’s actually happening. This transformation will affect all businesses across the region in the coming years, forcing them to reconsider how and when they collect and use data,” said Pure Storage managing director for Asean and Taiwan Chua Hock Leng.
Emerging technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and machine learning are prompting businesses to accelerate this digital shift and change the way they operate in the digital economy.
According to the independent survey of IT leaders in over 9,000 organisations globally, including 3,000 organisations in Asia Pacific and Japan (APJ), 79% of businesses in Indonesia are looking to digital services to drive faster innovation across their organisation, while 71% believe it will help them stay competitive.
“The world now is moving from traditional way of using technology to more complex and modern way such as cloud which offers more efficient and faster solutions,” said Pure Storage vice president, worldwide sales Kevin Delane (pic) in an event recently.
On the other side, against this digital gold rush, businesses in Indonesia remain unsure about the optimal IT strategy that underpins their move to digital.
The report shows that complexity of technology is seen as a major obstacle in digital transformation, with 59% of Indonesian businesses saying it is preventing them from converting to digital solutions. This is followed 49% who see a lack in digital skill sets.
Businesses that are more digitally driven are more likely to increase their use of on-premises storage. Sixty-one percent of Indonesian companies that derive more than half their revenue from digital services expect to see their use of on-premises growing in the next 18 months, compared to 41% of those that derive less than half their revenue from digital.
“The advantages once held by the public cloud are no longer its sole domain. Businesses need to understand how to use the entire data ecosystem; cloud and on-premises; in order to put their data to work and mine insights to deliver customer results,” Chua adds.
Businesses in Indonesia run 36% of their applications on the public cloud, compared to 32% on-premises and SaaS, and private cloud (31%).
Despite the reliance on public cloud, 46% of Indonesian companies that ran workloads in public cloud environments have moved some or all of those workloads back on-premises, higher than the APJ average of 38%.
“Modern digital businesses require a data platform that enables businesses to build a new class of applications, to extract new insights from data and to do so in real-time,” Chua explains.
In addition, more than 60% of IT departments in Indonesian businesses report that their colleagues in other departments like product management, customer service, and marketing are now having significantly more influence over key technology decisions.
Security is cited as the biggest drawback of public cloud for Indonesian companies (58%), followed by availability (36%), and performance (31%).
“With an infrastructure in place that supports mission-critical analytics at real-time speed, organisations in Indonesia can increase their pace of innovation, improve time to market, and ultimately deliver better data-driven results for customers,” Chua shares.