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PH businesses to increase cloud investment in 2023 — Alibaba Cloud

The Philippines is among the top countries where an increase in cloud investments may come from, according to the information gathered from Alibaba Cloud’s recent survey. Globally, the survey finds that 84% of existing users of cloud services are expecting to increase their investment in cloud technology in 2023.

The cloud has become one of the most indispensable technologies as organizations modernize their systems and digital infrastructure.

According to the Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group, the increase will most likely come from Thailand (95%), Indonesia (94%), the Philippines (91%), Hong Kong Special Administrative Region (S.A.R.) (83%), and Singapore (83%), while a larger percentage of the surveyed businesses in Japan and South Korea indicate that they will maintain their current levels of investment. 

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“With cloud infrastructure being the ultimate foundation for many cutting-edge innovations such as generative AI, we are as committed as ever to providing proven cloud-based solutions for businesses in different industries and supporting their seamless migration to the cloud services,” Selina Yuan, vice president of Alibaba Group and president of International Business for Alibaba Cloud Intelligence, said in a media advisory.

The Alibaba Cloud survey, which was conducted by NielsenIQ, also found that the gaming sector will bring the “sharpest increase” in cloud investment, followed by media and telecommunications, internet and technology, and financial services. 

Data analytics

In terms of investment priorities, a larger share of businesses in Asia will focus on data analytics & AI (53%), cloud computing (52%), and automation (46%). 

While more than two-third (69%) of the overall surveyed businesses have used cloud for at least three years, those in Hong Kong S.A.R., Japan and Singapore are the earliest adopters with only 1 in 5 (20%) having less than three years of experience using cloud services. 

Industry-wise, Internet & Technology, Manufacturing and Financial Services show the highest level of cloud maturity.

Full cloud migration to the cloud

The research also reveals that 84% of the surveyed businesses expect to fully migrate to the cloud within the next two years, partly driven by new needs that emerged during the pandemic. More than a third (36%) of respondents even anticipate a complete cloud migration within the next six months.

Among the surveyed businesses, the impact of COVID-19 has led to significant changes in their use of IT, with 54% reporting increased use of cloud-based software and 41% reporting acceleration with their cloud migration.

The survey also found that more businesses (40%) adopted private cloud than public cloud (27%). 

However, hybrid cloud adoption is on the rise, with the survey recording a 7 percentage-point net increase in the current adoption rate compared to the respondents’ initial cloud strategy adoption. Of the respondents who have changed their cloud strategy, the highest proportion of 39% have switched to hybrid cloud. 

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