A new study by the IBM Institute for Business Value (IBV) revealed that business executives in Singapore plan to invest in hybrid multi-cloud platform strategies and capabilities to drive business transformation and to unlock value.
- The value derived from hybrid, multi-cloud platform technology and operating model at scale is 2.5 times the value derived from a single platform, single cloud, survey reveals
- Public cloud spends by Singapore organisations to reduce from 46% share today to 40% by 2023
- By 2023, Singapore organisations expect to be using an average of 10 clouds, however, only 27% of businesses have holistic multi-cloud management strategy in place
The report titled, ‘The hybrid cloud platform advantage: A guiding star to enterprise transformation in Singapore’ noted that, 18% of Singapore firms’ IT spend is allocated to cloud and they plan to increase the share of spend on hybrid cloud from present 42% to 50% by 2023.
The majority of their cloud budgets are being allocated to hybrid cloud platforms even as their public cloud spend is set to reduce from 46% share today to 40% by 2023.
Lee Hui Li, managing partner, Global Business Services, IBM Services ASEAN said, “The adoption of cloud has been a central feature in developing new, digitally-driven business models. Interestingly, the findings show that hybrid multi-cloud is the fundamental enabler of an organisation’s operating model, helping them to embark on a journey to become a Cognitive Enterprise of the future.
He added that hybrid Cloud enables improved business performance and greater ROI. This is proven in the instance of leading businesses that have successfully achieved demonstrable competitive advantage through robust hybrid cloud management and governance platform.
“In Singapore, leading businesses are achieving business transformation by leveraging hybrid multi-cloud platform technology and embedding AI. We are betting big on Hybrid Cloud which is secure, interoperable, open and free from vendor lock-in,” commented Lee.
Most industries globally will exhibit growth in the number of clouds they will deploy, which can go up to 10 clouds particularly in insurance, telecommunications and retail as these industries will continue to expand multiple cloud deployments in the next three years.
Further, 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.