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IBM: PH companies to earmark 50% of cloud budget to hybrid in the next three years

Business executives in the Philippines are increasingly planning in investing in hybrid multi-cloud platform strategies and capabilities to drive business transformation and to unlock value reveals an IBM Institute for Business Value (IBV) survey.

The IBV surveyed over 6,000 global executives, including 100 executives from the Philippines, across industries to gain an in-depth understanding of their organizations’ use of hybrid cloud, multi-cloud and their approach to multi-cloud management for the report titled, ‘The hybrid cloud platform advantage: A guiding star to enterprise transformation in the Philippines.’

According to survey respondents from the Philippines, 17 percent of their IT spend is allocated to cloud and they plan to increase the share of spend on hybrid cloud from present 39 percent today to 48 percent by 2023. Most of their cloud budgets are being allocated to hybrid cloud platforms even as their public cloud spend is set to reduce from 53 percent share today to 43 percent by 2023.

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Most industries globally will exhibit growth in the number of clouds they will deploy, which can go up to 11 clouds per organization, particularly in insurance, telecommunications, retail, banking and consumer products as these industries will continue to expand multiple cloud deployments in the next three years.

Enterprise transformation

The study confirmed the return on investment (ROI) of a platform approach as respondents said that the value derived from a full hybrid, multi-cloud platform technology and operating model at scale is 2.5 times the value derived from a single platform, single cloud vendor approach. In fact, the platform approach is cited as accelerating value with scale.

The report also saw that globally, 64% of advanced cloud companies recognize the need for enterprise transformation and application modernization to go hand-in-hand, compared to 31% of respondents from the Philippines. Also, 68% of businesses around the world that are on an advanced cloud journey are building an open-source cloud platform, 55% more than Philippines’ respondents.

The survey report identifies businesses that recognize the strategic importance of Cloud, which comprise 13 percent of the global survey respondents, one percent of which are from the Philippines, as “Cloud Aviators.” Organizations in the Philippines expect to be using an average of 10 clouds per organization from a growing number of vendors by 2023 but only 28% have a holistic multi-cloud management strategy in place.

Cloud management

Only 25% of executives in the Philippines say they are seeking Cloud Management Platforms for improved visibility and control of their cloud costs, compared to 66% of organizations globally on the advanced cloud journey.

Enterprises in the Philippines are seeking an application development platform that can run on any cloud, workloads that can execute seamlessly across multiple clouds, and a comprehensive orchestration capability that spans across clouds.

“Undoubtedly, in today’s digital-first economy cloud adoption plays a key role,” said Lope Doromal, chief technology officer, IBM Philippines. “It is interesting to note that most organizations surveyed in the Philippines find hybrid multi-cloud as the critical enabler that will help them embark on their journey to become a Cognitive Enterprise. Moreover, they are realizing that hybrid cloud enables an improved business performance and greater return on investment. Proof of this is the leading businesses that have demonstrated their competitive advantage through robust hybrid cloud management and governance platform.

In the Philippines, we’ll see more businesses leveraging a secure, interoperable, open, and free from vendor lock-in hybrid multi-cloud platform technology that embeds AI to achieve successful business transformation.”