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Malaysian cloud market on fast track: Frost & Sullivan

AvantiKumar | July 17, 2011
One third of organisations in Malaysia place cloud computing as their number one priority, study shows

Mayank Kapoor, Research Analyst for Frost & Sullivan

PHOTO - Mayank Kapoor, research analyst for Frost & Sullivan's ICT team.

KUALA LUMPUR - Thirty-four percent of organisations in Malaysia place cloud computing as their number one priority, analyst firm Frost & Sullivan's new 'State of Cloud Computing in Malaysia 2011' study shows.

Frost & Sullivan research analyst Mayank Kapoor said on 14 July 2011 that the study shows cloud computing has growing traction and is an integral part of organisational IT strategy in the Malaysian market.

"One-third of organisations in Malaysia are already using some form of cloud computing. The end-user study, State of Cloud Computing in Malaysia 2011, finds that IT managers believe cloud computing provides them with cost effective means to gain access to the latest technologies and improve responsiveness to business demand as well. Growing mobility is another factor that is driving increasing interest in adoption of cloud computing."

"About 68 percent of enterprises have experienced or expect costs savings through the adoption of cloud services," said Kapoor. "However, the concerns around security, privacy and sovereignty of data continue to hamper adoption, especially for public clouds. Cloud services such as software-as-a-service (SaaS) continue to see high adoption, with infrastructure-as-a-service (IaaS) witnessing increasing interest."

"SaaS offers a number of benefits over on-premise software such as lower upfront costs, standardisation, ease of upgrade, ubiquitous access and seamless integration with in-house infrastructure leading to high adoption by cloud users; 91 percent of cloud users use SaaS," he said. "However, enterprises will continue to remain cautious about putting custom applications, sensitive storage data and production environments on the cloud. Also, cloud bursting is gaining interest in the market as enterprises look to scale up infrastructure requirements from the cloud to complement their own infrastructure."


Low price points and high security guarantees

Kapoor said Malaysian enterprises were looking for low and flexible price points and high security and privacy guarantees from service providers before making substantial bets on the cloud model. "According to the study, Microsoft, Google and IBM are the three service providers that enjoy the highest mindshare among Malaysian enterprises in both the public and private cloud vendor categories."

"It is essential for service providers to develop trust among the local enterprises by developing solutions catered to their business needs, local currency-based pricing, local support teams and partnering with strong local brands and telecoms," he said. "The Malaysian cloud market is on a fast growth curve and an increasing number of enterprises will be making it their number one priority in the coming years."


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