The Future Next Door for Cloud Computing in Malaysia

By: Catherine Lian, Managing Director, IBM Malaysia

After decades of experiencing a slow burn, cloud computing has caught the imagination of the industry all over again.

The IT industry hailed 2019 as a banner year for cloud computing. And hybrid cloud was singled out as favoured strategy for enterprises seeking a flexible and cost-efficient way to move their workloads online.

The sluggish adoption rate in Malaysia is expected shift to a higher gear this year as enterprises invest more in hybrid and multi-cloud environments. Last year, IDC forecasted that 25% of Malaysian enterprises are in transitioning their IT platforms to the cloud to support the increase in AI applications and edge computing. The use of AI and edge at enterprises is expected to rise in the next two years, according to IDC.

The number correlates with the recent findings of IBM’s Institute for Business Value (IBV). The IBV study found that 85% of companies all over the world already using multiple clouds for business operations. By 2021, the number of companies using multiple clouds is expected to grow by 11 points to 96%. It was clear that hybrid cloud will become even more significant across enterprises globally in 2020.

Enterprise speed, security and scalability
The momentum of cloud computing will accelerate further in 2020 as businesses in all sectors use hybrid multi-cloud strategies to rapidly roll out applications that accelerate the digital transformation of their businesses while delivering exceptional experiences to their customers.

Managing the broad IT infrastructure in a way that is simple, consistent and cohesive is essential for local enterprises to succeed in their cloud journey. But making these hybrid and multi-cloud environments work together require consistent management and enterprise grade security.

Simply and rapidly moving data and apps across clouds, regardless of location and vendor is no longer a choice but a critical foundation for present and future technology innovation. Enterprises require a hybrid cloud framework within a multi-cloud architecture for scalability, performance, and security.

At the same time, enterprises will increasingly turn to advanced encryption and protection solutions to ensure that their cloud infrastructure remain secure. They will embrace emerging technologies like edge computing to extend the reach of their capabilities. We will also begin to see wider adoption of automation tools to make it easier for enterprises to keep complex cloud ecosystems humming along.

With an eye on how the five trends unfold at enterprises across the world, local IT  teams here would be able to better manage their hybrid or multi-cloud journey to achieve goals and targets set. And you can count on us to help you journey to cloud.

The 2020 cloud trends that Malaysian enterprises need to be aware of are:

  1. 5G will enable more enterprises to use edge as part of their hybrid cloud strategy: The adoption of edge computing is expected to grow with local telecommunication companies ramping up the roll-out of 5G to the market. For enterprises, edge computing is a boon as it supports analytics and core functions in real time.

  2. Automation will dominate the next phase of hybrid multi-cloud: Automation will no longer be a novelty as enterprises automate processes to manage the various applications, APIs and data types that resides across multiple clouds. With automation, administrators will be able to manage complexities of multiple clouds.

  3. Security “command centers” will proliferate as part of hybrid cloud strategy:  60% of IT decision makers rated security as the most important attribute with data parked across different pockets of the enterprise. Security will be paramount as command centers take shape at enterprises. IBM believes that DevSecOps where security is integrated into the development process, will gain prominence in 2020.

  4. More adoption of industry-optimized clouds, beyond banking: Bank of America’s collaboration with IBM to build a financial ready public cloud has certainly sparked the imagination of other industries. 2020 is the year where other business sectors from manufacturing to automotive to healthcare to retail would be building industry specific and niche clouds. Especially since the data supports the decision – 61% of respondents of an IBM survey said that one of the biggest business benefits of adopting industry cloud services was ease of management and administration.

  5. Open-source tools will proliferate to make Kubernetes more consumable: The impact that open source technology will have on cloud in the new decade is expected to be profound. The addition of Red Hat into IBM’s solution portfolio expands opportunities in infrastructure modernisation and cloud native application deployment. Kubernetes and OpenShift are going to move the needle.

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