Cloud computing to become mainstream in Asia-Pacific in 2012

By eGov Innovation Editors | Nov 30, 2011

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Cloud computing is set to become mainstream in Asia-Pacific in 2012. By then, approximately 30 percent of APAC organizations will have adopted some form of cloud computing, according to Frost & Sullivan.

"Against this background, the market for public cloud computing is set to reach US$5.8 billion by 2015, growing at a CAGR of 39 percent between 2010 and 2015," said Andrew Milroy, Vice President, ICT Practice, Frost & Sullivan Asia-Pacific.

The industry is growing at about 10 percent year-on-year and the entire Asia-Pacific for cloud services was valued at US$4.32 billion in 2010.

The shift to the cloud will result in transformation of whole industries, including robust growth in the telecom and enterprise communications sector. Frost & Sullivan also predicts increased consolidation as the market matures.

Pranabesh Nath, Industry Manager, ICT Practice, Asia Pacific, Frost & Sullivan, said however that there is still concern about the security and privacy of data in the cloud, and this is largely a question of trust.

"Service providers are focusing their efforts in this area, as well as offering corporations private and hybrid clouds to alleviate some of their concerns," he said.

Nitin Bhat, Partner & Senior Vice President of the Frost & Sullivan ICT Practice Asia-Pacific observes that increased smartphones and tablets usage also pave the way for mobile cloud and consumer social networking would continue to gain momentum and particularly in enterprise social networking.