The Asia Pacific (APAC) region is experiencing a dynamic shift in its connectivity landscape, driven by the increasing demands of a digitally native population and the rapid adoption of technologies like artificial intelligence (AI), 5G, and the Internet of Things (IoT). As enterprises navigate this evolving environment, they face mounting pressure to construct agile, secure, and robust networks capable of supporting their expanding needs.
Asia’s digital native
The growing number of digital natives in Asia is reshaping connectivity demands. According to the International Monetary Fund’s November 2024 regional economic outlook, "60% of APAC organizations are expected to adopt AI language models tailored for local markets, which require high bandwidth and low latency connectivity solutions."
This highlights the need for resilient digital infrastructure to support innovation and growth.
Connectivity: The key to economic growth
Strategic investment in connectivity is crucial for economic growth and attracting further investment into Asia. Expereo’s president for Asia Pacific, Eric Wong, states that businesses increasingly rely on digital solutions, making robust infrastructure essential for enhancing connectivity and operational efficiency. This enables businesses to operate more agilely and expand into new markets.
Infrastructure investments can yield substantial economic benefits. The World Bank estimates that public investment can return 1.5 times the initial amount within a few years, particularly in developing economies, boosting productivity and stability. “Effective infrastructure also supports digital transformation, allowing enterprises to leverage data and technology for improved decision-making and customer engagement,” says Wong. Reliable connectivity solutions enhance operational resilience and promote collaboration, essential for navigating market challenges.
Infrastructure connectivity by 2025
In 2024, enterprises increased investments in digital infrastructure, driven by a digitally savvy population and technology adoption. This growth pushes traditional infrastructure limits, demanding high bandwidth, low latency, and reliability. Investors are responding by investing in data centres, with APAC data centre capacity projected to grow nearly 20% annually through 2028.
Wong expects that in 2025 increased investment in cable and connectivity infrastructure. Singapore plans to double its international subsea cable capacity, while Malaysia is constructing four new undersea cables. Vietnam aims to add several international internet cables by 2025 and another four to six by 2030. For countries with geographic challenges, such as India and Indonesia, Low Earth Orbit (LEO) satellite constellations are beginning to reshape connectivity in remote areas.
How market trends influence connectivity strategies
Market trends like the rise of remote work and digital services are significantly influencing connectivity strategies. Despite pushback on remote work, the distributed workforce is here to stay. This necessitates a connectivity strategy that ensures seamless access to applications and data. Expereo's Enterprise Horizons 2024 survey indicates that organizations are prioritizing networking technology over data analytics and edge computing to meet the demands of remote work.
“This means not only ensuring connectivity for employees but also creating a network that is agile and can adapt to the changing demands of business as usual.” Eric Wong
Infrastructure to meet the demands of Asian digital natives
CIOs can adapt infrastructure to meet the needs of Asian digital natives by investing in next-generation technologies like 5G and WiFi 7. While emerging markets face connectivity challenges, technologies like low-earth orbit satellites can help bridge these gaps.
“Enterprises can benefit from partners with deep local knowledge and global expertise to solve the unique challenges in their markets,” suggests Wong.
Investment strategies to support economic growth
To support economic growth, leaders should prioritize investments that enhance connectivity, drive operational efficiency, and improve competitiveness. Effective infrastructure can significantly boost productivity and stability, particularly in developing economies.
“Simply put, investing in robust digital infrastructure is not just about improving connectivity; it is about enabling sustainable economic growth and equipping businesses to thrive in an interconnected world.” Eric Wong
Integrating emerging technologies
CIOs should integrate emerging technologies like AI into their connectivity solutions to remain competitive. AI can be leveraged for network management through predictive analytics, automating optimisation processes, and improving threat detection capabilities.
This allows organisations to shift resources to more strategic initiatives, facilitating better decision-making by analysing vast amounts of data generated by connected devices in real-time, especially as the Internet of Things (IoT) expands. Integrating AI-driven security measures is essential to safeguard against evolving cyber threats.
Assessing the impact of AI
CIOs can assess the impact of AI on their connectivity strategies and infrastructure planning by utilising predictive analytics to anticipate network demands and potential bottlenecks. They should also evaluate their current infrastructure to identify areas where AI can streamline operations, such as automating routine network management tasks and enhancing security protocols through intelligent monitoring.
Wong believes that ensuring that IT teams receive ongoing training and development in AI technologies will help them harness these tools effectively to drive competitive advantage.”
Key metrics for measuring ROI
CIOs and CFOs should track operational and financial metrics to measure the ROI of their connectivity investments. Factors like network uptime and availability, bandwidth utilisation, latency, and the number of users supported should be monitored to assess the efficiency and effectiveness of the connectivity solutions deployed.
“At the same time, they should track the impact of improved connectivity on business outcomes, including increases in productivity, reduced operational costs, and improved customer satisfaction,” elaborates Wong.
Best practices for secure and resilient network infrastructure
Organisations can implement several best practices to ensure their network infrastructure is both secure and resilient.
These include investing in comprehensive cybersecurity frameworks, adopting strategies like network segmentation or the zero trust model, and considering a combination of network diversity, redundancy, and SD-WAN technology.
He reminds us of the importance of ensuring employees are kept up to date with security awareness training and fostering a culture of security consciousness are also essential.
Leveraging public-private partnerships
Enterprises can leverage public-private partnerships to enhance connectivity and drive innovation by combining the strengths of both sectors.
“By collaborating with government agencies and other organisations, enterprises can gain access to resources, expertise, and funding while benefiting from supportive regulatory frameworks that encourage private investment in technology.” Eric Wong
These partnerships also play a crucial role in addressing infrastructure gaps in underserved areas, ensuring broader access to connectivity and promoting digital inclusion.
