Cloud 2.

0 :
Catch the next wave with a Hybrid Multi Cloud Strategy
Dr Willia m Le e , Re se a rch Dire cto r, Clo u d Se rvice s Re se a rch , Asia Pa cific
25 th o f Ap ril, 2019

© IDC
Mega Trends in Asia Pacific
In 2019, 65% of APeJ By 2020, 60% of large By 2021, 60% of CIOs will By 2022, in APeJ, the need to
enterprises' new digital services enterprises will create data deliver "agile connectivity" secure growing volumes of
will be composite workloads management or monetization via APIs and architectures dispersed data generated at
that need secure, reliable capabilities, enhancing that interconnect digital edge locations will have driven
interconnection with third-party enterprise functions and solutions from cloud 40% of enterprises to set up and
data/analytic resources in cloud creating new sources of vendors, system developers, operate data vaults in multiple
or colocation facilities. revenue in APEJ. startups, and others. colocation facilities.

Composite Data Agile Edge

Workloads Revenue Connect Data

Digital Consumption Mega Managed

Strategy -based Platforms Cloud

By 2020, 30% of By 2021, more than 35% of By 2022, the top 4 clouds APEJ enterprises’ need to
A1000 companies will enterprise IT operations spend in ("megaplatforms") in APeJ will be optimize ROI, reduce
have allocated capital APeJ will be consumption- the destination of choice for 70% budgets, and cope with the
budget equal to at based, the public cloud platform of workloads, while lock-in will be scarcity of cloud experts
least 5% of revenue being preferred as a lower-risk avoided through multicloud and will drive spending on
to fuel their digital option to manage complexity and cloud-native approaches to managed cloud services to
strategies in APEJ. align cost with consumption. achieve portability. nearly US$18 B by 2022

Source: IDC, 2019 © IDC 2

 “DX Platform ” on Cloud
Innovate at speed on
Enterprise Platform Digital Platform the digital platform
with new use cases
and reimagining of
business models to
help customers create
Aggressively help
the new ecosystem
modernize enterprise
IT platforms to
accelerate DX
initiatives

Implement hybrid
cloud architectures
and data analytics
On - Hosted/Public platforms to enable
Premises Cloud seamless integration
across both worlds, and
focus on enabling key
Hybrid Cloud Architecture business outcomes as
part of this
Source: IDC, 2019 © IDC 3
Cloud Market in Asia Pacific (excluding Japan)

Hybrid Cloud -related Services

Total Market CAGR (Professional & Managed Services)

27.7% Commercial Cloud Enablement

Services (incl. Infra Services)

Enterprise Private Cloud (incl.

Professional & Managed Services)

Hosted Managed Private Cloud

Services (excl. Infra Services)

Public Cloud Services (incl.

Professional & Managed Services)

Source: Asia/Pacific (excluding Japan) Whole Cloud Forecast (2017 to 2021), Oct 2018 © IDC 4
Cloud 2.0: Evolving Ecosystem
Competitor, Partner or Customers?

Traditional ICT Services Ecosystem-driven

Supplier Model Driven Cloud 2.0

So u rce : IDC, 2019 © IDC 5

Default to Hybrid Multi Cloud Environment
The Journey Begins with Private Cloud

Clo u d Ad o p tio n by Typ e Clo u d In te rco n n e ctio n Po in ts

Q. Ove r th e n ext two ye a rs, h ow wou ld yo u d e scrib e you r orga n iza tion s Q. Ha s yo u r o rga n iza tio n e n a b le d a n y o f th e fo llowin g clo u d s to
u se o f d iffe re n t o n -p re m ise & off-p re m ise clou d e n viron m e n ts? [SR] in te rop e ra te ? [MR]

On -p re m ise s p riva te clo u d with h o ste d p riva te clo u d

Single cloud 21%
41%

On -p re m ise s p riva te clo u d with p u b lic clo u d

Multicloud
40% 45%
low interoperability

Ho ste d p riva te clo u d with p u b lic clo u d

+
+
Multicloud
28%
29%
high interoperability Pu b lic clo u d with d iffe re n t p u b lic clo u d

31%
Hybrid cloud 9%

Source: Asia/Pacific (excluding Japan): Cloud Repatriation Accelerates in Multicloud World, Oct 2018 © IDC 6
Majority have 1 Primary Public Cloud Provider
Multi Cloud is popular but prevalent pattern is a single primary and multiple
secondary providers
Q. How d o yo u ch a ra cte rize yo u r co m p a n y’s a p p ro a ch to u sin g p u b lic clo u d Ia a S se rvice s? [SR]

86% Single
Primary Providers

57% Multiple Public

Cloud Providers

So u rce : IDC Ia a SView Su rvey, 2018 © IDC 7

Shifting, Disaggregated Application Portfolio

Complexity in management rises quickly over

the next two years:
• 50% growth in the typical application portfolio

• 38% of applications to be built using modular

development frameworks

• Over 50% of all applications at

remote/edge or provider datacenters

• 49% expecting high application interdependencies

(up from 19% today)

• Already four to eight other application

dependencies for each business application

Source: Asia/Pacific (excluding Japan): Cloud Repatriation Accelerates in Multicloud World, Oct 2018 © IDC 8
 Embarking on the Digital Journey

Business Agility Managed

Portability

Consistency
BUSINESS VALUES

Quality of Service
Best Practices

Silos
Cost Efficiency

Foundation Scaled Workload Workload Business IT as a Service

Virtualization Virtualization Availability Management Policies (ITaaS)

Virtualization Provision Standardization Automation Orchestration Optimization

DIGITAL JOURNEY
Source: IDC, 2019 © IDC 9
 Applications Drive Deployment Choices
Outsourced/Managed Services Strategic Value Hybrid, Multicloud

• Access new applications • New business models

• Mitigate skills shortage • IoT and Edge
Partner Reengineer
• Public or Hosted Private • Public, Enterprise Private
Cloud & Hosted Private Cloud

Priority

Migrate Replatform
Efficiency Outsource, Modernize
• Lower operating costs • Business critical
• Capex to Opex • Legacy architecture
• Hosted Private & Public • Enterprise Private &
Cloud Hosted Private Cloud

Source: IDC, 2019 © IDC 10

Essential Guidance

02
Data and Applications Interoperability. Hyb rid a n d
Mu lticlo u d d e p loym e n ts a re n ow th e n o rm in APe J. Th e
in te ro p e ra b ility o f d a ta a n d a p p lica tio n s b e twe e n m u ltip le
clou d e n viron m e n ts will grow in im p orta n ce , e sp e cia lly with
p riva te clo u d (e ith e r o n -p re m ise s o r h o ste d ) b e in g th e
co m m o n fa cto r. Clo u d -n a tive a p p lica tio n s d eve lo p m e n t a n d
d e p loym e n t is key to ta ke a d va n ta ge o f clo u d ’s e la sticity a n d

01
sca la b ility to b o o st o rga n iza tio n a l p e rfo rm a n ce , in cre a se
Innovate on Public Cloud. Pu b lic clou d a d op tion b u sin e ss ve lo city, a n d a d a p t to ch a n gin g m a rke ts.
is risin g b e ca u se of its growin g im p orta n ce a s th e

03
la u n ch p a d for virtu a lly a ll IT in n ova tion s in th e
e n te rp rise s (e .g. Artificia l In te llige n ce , Blockch a in , Managed Cloud Environment . As clou d se rvice s
In te rn e t of Th in gs, Se rve rle ss Com p u tin g, Da ta b e co m e m o re co re to e n te rp rise s, th e IT
Se rvice s, e tc.). With p u b lic clou d se rvice p rovid e rs e n viro n m e n ts th ey o p e ra te in grow m o re co m p lex,
exp a n d in g a n d d isp e rsin g th e ir clou d in fra stru ctu re with m u ltip le p u b lic clo u d s, p riva te clo u d s, a n d
footp rin ts a cross th e re gion , cost of h yp e rsca le a n d tra d itio n a l syste m s n e e d in g to b e in te rco n n e cte d ,
ge ogra p h ic re q u ire m e n ts of se rvice d e live ry ca n b e in te gra te d , a n d co lle ctive ly m a n a ge d . Th is co u p le d
a d d re sse d th rou gh Mu lticlou d op tion s p rovid e d by with th e re la tive ly low skills in th e re gion to m a n a ge
th e m e ga p la tform ve n d ors. im p le m e n ta tio n a cro ss p riva te a n d p u b lic clo u d s,
will d rive th e n e e d fo r a m a n a ge d clo u d se rvice s
d e p loym e n t m o d e l to h e lp e ffe ctive ly m a n a ge a n d
op tim ize th e on - a n d o ff-p re m ise s clou d s.

© IDC 11
Thank You

Dr William Lee
Research Director, APeJ Cloud Services
[email protected]

@williamgklee

https://www.linkedin.com/in/william-lee-a63232a

© IDC 12