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COVID-19 has accelerated the adoption of digitalization technology and services, according to IDC Asia/Pacific’s report, titled Cloud and COVID-19: Asia/Pacific (Excluding Japan). Spending on cloud services and technology has been much less affected than spending on other areas. For overall ICT spending in Asia/Pacific, there is a definite intention to reduce budgets in the short term – at least in 2Q20. At this stage, some countries are signaling that they will still have a modest spend growth for full year 2020. IDC The study examines the latest data on end-user intentions regarding the impact of COVID-19 across IT and cloud spending.
“The pandemic has brought opportunities for some organizations to take advantage of changed operating conditions to address the weaknesses on what projects to deliver under the current conditions,” says William Lee, Research Director for Cloud Services at IDC Asia/Pacific.
As organizations transition to the Next Normal, increased demand for public cloud services has solidified and is likely to be maintained. Asia/Pacific countries are emerging from the immediate reactive state and are building plans for recovery – with some countries moving faster than others. Moderate growth can be expected across all countries, with the exception of New Zealand which will generally remain unchanged.
Other key highlights of the report:
- With the initial temporary interruption of hardware supply chains, some of the increase on infrastructure-as-a-service IaaS spending is likely to be short-term virtual private cloud (VPC) with hyperscalers.
- The increase in software-as-a-service (SaaS) spending will be driven by remote work solutions and conferencing/collaboration services.
- Security is one of the top areas for spending and also the area with little impact on the spend, making it a must-have item.
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