TECH SUPPLIER Dec 2019 - Market Forecast - Doc # AP44698619

Asia/Pacific (Excluding Japan) Total Cloud Infrastructure Forecast, 2019–2023

By: William LeeResearch Director, Chris MorrisVice President, IDC Asia/Pacific, Prabhitha Sheethal DcruzSenior Market Analyst, Cloud Services


This IDC study identifies opportunities available throughout the different cloud IT infrastructure types (virtualized/software-defined compute and storage), which include public cloud infrastructure as a service (IaaS), enterprise-owned private cloud infrastructure, service provider–owned and –hosted private cloud infrastructure. Together these are defined as the total cloud infrastructure market where enterprises spent on for their cloud workloads to reside in.

Public cloud services continue to be the largest opportunity and engine of growth for the cloud market in the region. In 2018, public IaaS enterprise consumption spending totaled US$8.7 billion and is expected to grow at a compound annual growth rate (CAGR) of over 36% through 2023, more than quadrupling to US$41.4 billion. Public cloud's dominance is becoming more driven by how the major public cloud platforms, collectively, are becoming the number 1 source for innovation in technology. This is also spurred by the continued expansion of public cloud infrastructure deployments across the region by some key hyperscaler service providers, such as AWS, Microsoft, and Alibaba Cloud, to address the geographic requirements of infrastructure and deliver multicloud options for enterprise customers via "sell with" models with ISVs and private cloud infrastructure providers.

Private cloud infrastructure also shows significant growth as noncloud application churns favor private cloud deployment. The combination of spending on hardware, software, and services that enable enterprises to build and own their own private cloud systems and services (enterprise private cloud) and private cloud infrastructure delivered "as a service" by service providers (hosted private cloud) generated US$10.2 billion in 2018. However, private clouds will grow at a slower CAGR of about 17% through 2023, reaching US$22.6 billion — close to just half of public cloud infrastructure. This growth is also driven by the emergence of "local cloud" offerings: a new class of remotely managed and distributed offerings from the major public cloud providers such as AWS Outpost and Oracle Cloud at Customer that connect and are made compatible with their public cloud offerings. This will facilitate the increasing shift of workload onto cloud infrastructure (both public and private), extending deployment from enterprise datacenters to cloud to edge locations.

"The end state of organizations' infrastructure will be a hybrid IT environment, a mix of public cloud, private cloud, and traditional noncloud IT infrastructure, leveraging different cloud platforms across multiple service providers," says IDC Asia/Pacific Cloud Services Research Director, William Lee. "With the rise in cloud-native workloads and the prevailing shift of existing workloads onto cloud infrastructure, it is necessary to enable application interoperability throughout various cloud infrastructure types via containerization technology."


Subscriptions Covered

Asia/Pacific Cloud Services: Cloud Platforms

Regions Covered

Asia Pacific

Topics Covered

Hybrid clouds, Infrastructure as a service, Platform as a service, Private cloud services, Public cloud services, Software as a service


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