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50% of APeJ enterprises to partner with cloud providers for GenAI, DevTools, and infrastructure by 2025 – IDC

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According to the IDC FutureScape: Worldwide Cloud 2024 Predictions — Asia/Pacific (Excluding Japan) Implications report, by 2025, approximately 50% of enterprises in the region are anticipated to establish strategic partnerships with cloud providers, focusing on GenAI platforms, developer tools, and infrastructure. This collaboration is expected to necessitate the implementation of new corporate controls to manage data and control costs effectively.

There is a growing awareness among organizations in Asia/Pacific about the significance of GenAI as a transformative technology. They see cloud infrastructure as integral to fostering innovation and accelerating the accessibility of new technologies. The advantages offered by the cloud, such as scalability, agility, flexibility, and cost-effectiveness, position it as a critical foundation for the adoption of GenAI technologies.

As the world pivots towards artificial intelligence, especially with the spotlight on generative AI (GenAI), the role of cloud in various forms will continue to expand, becoming increasingly vital as enterprises enter an era of “AI everywhere.” Adopting multicloud or hybrid cloud architectures will be critical to their GenAI strategy.

IDC also reveals other key predictions for AI-infused cloud developments in the region. They are:

  • Security: By 2025, 23% of organizations are expected to implement cloud-native application protection platforms with AI, ensuring continuous compliance with cloud security posture management features.
  • Skill Gaps: Anticipating a surge in cloud applications using AI, the report suggests that by 2027, two-thirds of these applications will be deployed, leaving 80% of organizations in Asia struggling with a lack of skilled AI professionals.
  • App Modernization: GenAI is predicted to revolutionize the refactoring of legacy apps, with enterprises using GenAI tools and cloud service provider platforms for 60% of code conversion and development tasks by 2027.

“With the rise of AI, cloud foundation is core to the ability to create even more possibilities for organizations to increase productivity and explore new business model. APEJ Organizations and their leaders will need to grasp both the broad long-term impact of AI as well as the immediate impact of GenAI investments across their entire technology landscape to ensure they capitalize on opportunities and manage costs and risks,” says Daphne Chung, Research Director, Cloud Services and Software, IDC Asia/Pacific.

In addition to the adoption of AI-driven cloud solutions, IDC outlines further predictions for the Asia/Pacific region.

  • High Performance Computing (HPC): By 2026, 50% of enterprises are expected to move away from public cloud migration trends, choosing to deploy HPC on premises, with managed services providers, or at colocation providers.
  • Edge Computing: By 2027, 70% of the A2000 (Asia 2000) will opt for cloud providers and connectivity partners for zero-touch provisioning and zero-trust security at the edge, aiming to reduce the burden on IT staff by 2x.
  • Partner Ecosystem: By 2025, 65% of the A2000 will actively participate in multicloud environments through partner ecosystems, offering valued services, application development, and integration spanning from the distributed cloud to the edge.
  • Sustainability: Anticipating power scarcity and sustainability mandates, 45% of data centers are projected to adopt purpose-built solutions like custom silicon, liquid cooling, microgrids, and ruggedization by 2028.
  • FinOps: By 2026, 40% of A2000 companies plan to broaden their FinOps scope, identifying new cost optimization opportunities through the incorporation of SaaS management platform tools and capabilities.
  • Sovereignty: Over the next 12 months, CIOs are expected to allocate 25% of their Infrastructure as a Service (IaaS) data storage budgets towards solutions addressing data sovereignty concerns, ensuring compliance with regulatory requirements.

Source: IDC

Read next: 73% of CIOs plan to increase their IT budget in 2024, finds a survey by Recognize

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