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2019 Press Releases

January 11, 2019

Datacentre evolution underway to support Smart Nation vision

Editorial Note: Singapore leads the region in the swith from a traditional datacentre infrastructure to a hybrid cloud. Hopefully this move will see other ASEAN nations doing the same in the near future as well. 

Singapore enterprises are set to dramatically switch away from traditional datacentre infrastructure in favour of hybrid cloud over the coming 24 months according to a new global report from Enterprise Cloud OS leader, Nutanix (NASDAQ: NTNX).

The report, The Nutanix Enterprise Cloud Index, carried out by Vanson Bourne among 2300 senior IT decision makers in medium-to-large enterprises across the globe, found Singapore respondents intended to reduce traditional infrastructure adoption by around 60% from 42% to 17% over the next 12-24 months, while dramatically increasing hybrid cloud adoption from 18% to 46% - a massive 150% increase, over the same period.

If the indicated plans materialize, Singapore’s enterprises will be outpacing their global and regional peers in hybrid cloud use by 5% and 7% respectively.

The findings come as Singapore consolidates its position as the region’s leading data hub and international companies queue up to establish state-of-the-art datacentres and capitalise on the nation’s superior connectivity.

“Singapore remains Asean’s digital gateway and a key pillar within the wider Asia Pacific data landscape, pushing boundaries to achieve its vision of a Smart Nation” said PK Lim, Managing Director, ASEAN, Nutanix. “What we are seeing in this report is a realisation among enterprises that joining the data dots via a hybrid cloud infrastructure will become critical if we are to maintain and maximise our strategic advantage.

Lim’s view was reflected in the survey’s rankings for the top IT trends currently impacting the nation. Beyond hybrid cloud (94%), respondents also identified IoT (87%) and AI & machine learning (82%) as having the most positive influences on business today – technologies that generate significant amounts of data and require immediate and local processing of the data.

Other key findings from the report include:

  • Singaporean respondents ranked Data Security and Compliance (35%) as the number one benefit of Public cloud, a sign of the importance the country’s businesses place on maintaining their own and the country’s standing and integrity.

  • Singapore respondents spend more than a quarter (27%) of their IT budgets on public cloud services a year – This is expected to jump to a third (36%) by 2020, putting the nation second only to India in the region.

  • Overspending is a big concern – 46% of respondents in Singapore are going over budget on their public cloud spending, second globally only to Korea on 49%. This perhaps explains why lowering overall costs comes top of the priority list for cloud decisions (64%). Other concerns included security & compliance (61%), and IT skill sets (52%).

  • Private Cloud adoption making way for Hybrid – As hybrid adoption gathers pace, Singapore respondents expect to halve their private cloud adoption over the next one to two years.

  • Disruption and end-user experience barriers to adoption – Interestingly, despite Singapore’s excellence in connectivity, respondents cited end-user experience (34%) and disruptions when updating (32%) as key challenges for the public cloud. These results were significantly more pronounced in Singapore compared to the global and APJ averages.

“Transparency and governance is going to be key in our data evolution,” added Lim. “As regulatory oversight at national and international levels rise – and data sovereignty and privacy challenges become more prevalent – enterprises will be required to have better visibility and understanding of where their data is, what it is doing, and what they are sharing. To do that, they’ll need insight into every aspect of their connectivity and data.”

The inaugural Nutanix Enterprise Cloud Index 2018 surveyed more than 2,300 IT decision makers around the world about their views on the cloud and IT priorities, including 700 respondents from the Asia-Pacific and Japan (APJ) region. For further information, or to download the full report, please visit: https://www.nutanix.com/enterprise-cloud-index/