2021 Press Releases

November 17, 2021

New Singapore Rackspace Technology Survey, in Association with Google Cloud, Demonstrates the Rapid Pace of Cloud Adoption

Rackspace Technology, a leading end-to-end multicloud technology solutions provider, announced the results of a new global survey of 1,400+ IT executives, Future of Compute, conducted in collaboration with Google Cloud, that highlights the increasing rapid pace of cloud adoption. According to the survey, the question is no longer whether organisations should migrate to the cloud, but rather how they can leverage the cloud for innovation, efficiency, and growth. Executives from Singapore, the United States, Australia, India, the United Kingdom, Germany, Mexico, Colombia, the Netherlands, and the Middle East took part in the survey.

According to the survey, more than half (51%) of local survey respondents said that 100% of their applicable infrastructure now resides in the cloud, while (50%) said they plan to move more of their workloads into the cloud as possible. In addition, more than two thirds (64%) of respondent’s compute workloads are now supported by public cloud, colocation, and managed hosting services. At the same time, IT infrastructure spread has reached an equilibrium and leaders expect it to hold steady over the next three to five years.

According to the survey, the top three factors driving decisions on where businesses should run their cloud infrastructure in Singapore are business growth (36%), efficiency (23%), and improved security (8%).

More than a third (35%) of respondents say IT executives play a key role in driving the company's direction, highlighting the increasingly central role that technology is playing in transforming operations as functional silos continue to dissolve.

“Driven in large part by the power of the cloud, today’s technology landscape is evolving at a breakneck pace, while IT is penetrating all areas of the organisation,” said Jeff DeVerter, Chief Technology Evangelist at Rackspace Technology. “In this environment, IT leaders have the power to help companies and organisations see around corners to solve both their short-term and long-term business challenges and provide critical guidance in the areas of business growth, security, efficiency, and customer experience.”

“Singapore and largely APAC are adopting both public and private cloud and many organisations are looking to do so even more in the next few years to boost digital transformation securely and sustainably. Organisations will be increasingly faced with complex considerations when employing hybrid and multi-cloud strategy which makes it more crucial for them to engage solutions experts to help them fully realise the value of the cloud, said Sandeep Bhargava, Managing Director, Asia Pacific and Japan, Rackspace Technology.
 
Rapid Cloud Growth, Use of Containerised Applications Increase
According to Gartner, the cloud market grew 23% last year to $323.3 billion, with an 18% annual growth rate projected for the future. As a result, the majority of respondents (63%) say they are already reaping the benefits of a public cloud and/or a private cloud (66%). Furthermore, public cloud investments can account for up to 40% of most IT budgets, while private clouds account for 30%.

Containerised applications are also continuing to grow in popularity as organisations shift away from on-site data centres. The most common tactic among organisations (89%) employing private. However, 87% of respondents say they are employing public cloud using cloud-based VMs (virtual machines). 62% of respondents say their use of containerised applications will increase in the next two years.
 
Future Cloud Directions
The cloud revolution brought an influx of advancements to the world of compute; however, the past decade of inundation is settling into a more level pool of opportunity. Over the next 12 months, respondents anticipate their infrastructure spending will include on-site data centres (55%), managed hosting (52%), public cloud (51%), and colocation (34%). However, 60% of respondents also said they envision not owning a data centre in the next five years. Around 54% say legacy apps are the main factor keeping them from abandoning data centres.

Security, data privacy, and control are understandably top priorities for IT leaders, particularly for public cloud use cases. While these concerns are legitimate barriers to more businesses fully reaping the benefits of the cloud, the reality is that heterogeneous multicloud infrastructure is becoming the norm. Companies that devote their resources to successfully addressing security and data privacy concerns while innovating with cloud technology can expect to gain a significant competitive advantage.