Akamai Technologies, Inc has revealed that 95% of channel partners agree that cloud computing is a key priority for their customers’ 2023 strategy. However, not all businesses plan to or are able to invest heavily in the space. Willingness to spend varies greatly, with 27% planning to spend below 20% of their IT budget on cloud and 33% planning to spend above 40% of their budget.
Results are based on a survey of 386 respondents across Australia and New Zealand (ANZ), Japan, China, India, Singapore, and South Korea. The survey was conducted to glean insights into partners’ perspectives on IT budget priorities, and their customers’ 2023 cloud strategy.
“In our conversations with partners, we see that organizations are walking the fine line between investing in cloud as well as being frugal in light of the macroeconomic headwinds,” explained Tatsuya Suzuki, Regional VP, APJ Carrier and Channel, Akamai.
Understanding cloud priorities across the region
Upon analysis of country-specific data, Akamai’s findings revealed significant differences in the willingness to spend on cloud despite an overarching agreement on the importance of cloud technology.
Specifically, Vietnam (31%), Indonesia (27%), and India (23%) had the highest percentages in terms of respondents who said the proportion of IT budget spent on cloud would be 60% and up.
Conversely, Thailand (50%), Japan (49%) and Taiwan (40%) had the highest percentages for respondents who indicated that the proportion of IT budget spent on cloud would be below 20%.
Market Data Points
- In ANZ, 96% of partners agreed that cloud is important to their customers’ 2023 strategy, with most respondents (48%) estimating that 21-40% of IT budgets would be spent on cloud.
- In Japan, 87% of partners agreed that cloud is important to their customers’ 2023 strategy. However, most respondents (49%) estimated that below 20% of IT budgets would be spent on cloud.
- In China, 98% of respondents agreed that cloud is important to their customers’ 2023 strategy, with most respondents (33%) estimating that between 21-40% of IT budgets would be spent on cloud.
- In India, 97% of respondents agreed that the cloud is important to their customers’ 2023 strategy, with many respondents (48%) estimating that between 21-40% of IT budgets would be spent on cloud.
- In South Korea, 96% of respondents agreed that cloud is important to their customers’ 2023 strategy, with many respondents (50%) estimating that between 21-40% of IT budgets would be spent on cloud.
- In Singapore, 95% of respondents agreed that cloud is important to their customers’ 2023 strategy, with many respondents (52%) estimating that between 21-40% of IT budgets would be spent on cloud.
“While most organizations acknowledge the importance of cloud, many are apprehensive about investing their IT budgets in this technology, given concerns of costs and how this will affect other overarching IT priorities. These sentiments are clear from the latest insights we have gathered from our partners,” explained Suzuki.
“We believe that organizations need more options for their cloud needs, particularly those that are easy to use and developer friendly with transparent, attractive pricing,” he continued.
Partners speak out on priorities for 2023
Most partners, including Wangsu, a China-based company that provides content delivery network and Internet data center services, are seeking a user-friendly public cloud solution, coupled with a transparent pricing structure.
Meanwhile, security continues to be an overarching priority for partners, with the rise of data breaches in the past months.
“In the coming months, we are likely to see an increase in the number and sophistication of cyber-attacks and larger scale data breaches, causing more disruption. There is also a risk of complacency from breach fatigue. Many organizations will focus on improving the security of their supply chain as part of ensuring positive business outcomes,” explained Mark Trumble, APAC Head of Portfolio – Cyber Security, Fujitsu Australia, and New Zealand.”
To account for these challenges, partners are increasingly looking to provide a range of products and services for customers that embed different layers of security and in-depth defense.
