The need to improve agility and speed in operations by utilities in the Asia-Pacific are the two main factors driving them into adopting cloud-based solutions, according to the International Data Corporation (IDC).
The latest report from IDC, Cloud Priorities within Asia/Pacific Utilities, finds that 57.1% of utility companies in the Asia-Pacific region say that their biggest triggers for cloud adoption are agility and speed.
In addition, data centre upgrade, application upgrade, modernisation, and re-platforming are accelerating cloud adoption by energy providers in the region.
Utilities in the region are adopting cloud solutions to optimise management of IT environments and data as part of digital transformation initiatives.
Utilities gain greater visibility and transparency by deploying workloads to the cloud in line with their business priorities.
Cloud strategy priorities are changing amongst Asia-Pacific utilities. More than 75% of companies are currently leveraging private cloud services – primarily driven by security perceptions. The number of utilities utilizing the private cloud is expected to double in the next couple of years.
Of the organisations, 30% have firm plans to invest in the public cloud within 24 months to gain quicker access to new functionalities. However, currently, only 10% of Asia-Pacific utility companies have an optimised cloud adoption strategy in place.
IDC predicts that public cloud services spending by utility companies within Asia-Pacific (excluding Japan and China) will reach $650 million by 2023, growing at a compound annual growth rate (CAGR) of 19.7%.
SaaS emerges as the biggest contributor in terms of absolute numbers, and PaaS rises at 26.7% CAGR – the largest of them all.
Jayesh Verma, research manager at IDC Energy Insights Asia-Pacific, said: “Utility companies are grappling with changing market dynamics and preparing themselves for the next stage of their digital transformation (DX) journey. Cloud is a fundamental DX enabler and will play a key role in enabling utility companies to bring down costs and improve operational efficiency.”
Read more about the report and the five cloud adoption maturity stages.