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Asia Pacific public cloud services spending up nearly 29% in 2021

APAC public cloud services

According to IDC, Public Cloud Services spending in Asia/Pacific (excluding Japan) will hit US$ 48.4 bn this year as organizations are adjusting to post-COVID conditions by building highly competitive technology-enabled business models. Cloud is crucial to this, resulting in vast public cloud services spending growth.

Investments are geared towards supporting new business operational requirements, rapid scalability, reduced risk, and enhanced customer experience. Cloud Infrastructure as a Service (IaaS) is expected to make up 46% of the overall spending, growing at 32.7% in 2021. In second place is Software as a Service (SaaS) (41% share), followed by Platform as a service (PaaS) (12%).

"Cloud and cloud-centric operating models have become integral components of the modern IT environment,” explains Daphne Chung, Research Director, IDC APEJ Cloud Services and Software. “The pandemic has put cloud to the test in terms of delivering on the promises of agility, flexibility, and scalability, and organizations are recognizing it as critical to their IT strategy.”

The findings are in line with the trends described in IDCs ‘Cloud Outlook 2021’ for the region, which examines presents the way Asia/Pacific financial services institutions must manage their future strategies to cloud. The pandemic has accelerated demand for digital transformation while technology investments are required to deliver more at a lower investment level. As a result, organizations are adopting cloud services as the foundation for secure scalable, resilient, available, and agile IT operations. According to IDC's Worldwide Public Cloud Services Spending Guide, financial services institutions’ public cloud spend in Asia/Pacific (excluding Japan) will triple US$4.9 bn in 2019 to US$18.1 bn in 2024 at a 29.9% compound annual growth rate.

"Public cloud services are increasingly being consumed as part of organizations' hybrid cloud architectures and will continue to see strong demand during the forecast period," adds Prabhitha Dcruz, research manager, Asia/Pacific (excluding Japan) Cloud Services.

Prabhitha Dcruz

Research Manager, Asia/Pacific (excluding Japan) Cloud Services

APAC public cloud services spending to reach US$124 bn by 2025 Source: IDC Reports – 2021
APAC public cloud services spending to reach US$124 bn by 2025 Source: IDC Reports – 2021
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