More businesses in Asia Pacific, excluding Japan, are modernizing their cloud infrastructure, with traditional IT setups expected to decline over the next two years, according to a report by International Data Corp. (IDC). By 2027, more than half of businesses will update at least half of their cloud architecture to improve efficiency and support innovation.
A growing number of organizations — 77%, according to IDC — view digital infrastructure as essential. Many are adopting artificial intelligence operations (AIOps) to enhance infrastructure, applications, and cost management. The rise of generative AI and traditional AI is speeding up this shift, allowing companies to explore new ways to improve productivity and business models.
“The AI Pivot in 2025 will fundamentally reshape how Asia Pacific businesses approach to cloud and digital transformation,” Daphne Chung, research director of Cloud Services and Software, IDC Asia Pacific, said in a statement.
She also noted that organizations that leverage multi-cloud architectures, infused with AI and platform-based capabilities, will gain the flexibility to innovate faster, adapt to market demands, and deliver unparalleled customer experiences.
“This shift is critical to thriving in a multi-cloud, data-driven world,” she said.
IDC also highlighted trends shaping cloud strategies in the region. By 2026, 35% of businesses will seek network providers with sovereign controls, 60% will use specialized accelerated cloud services for AI applications, and 40% will apply generative AI for cloud security.
“AI and cloud modernization are reshaping Asia Pacific businesses, making the AI Pivot a necessity to drive growth, efficiency, and competitiveness,” Chung said.