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Enterprise Security Magazine | Friday, May 20, 2022
Cloud infrastructure services spending in the Asia Pacific reached USD8.7 billion in Q2 2022, up 35 per cent and accounting for 14 per cent of worldwide cloud spending.
FREMONT, CA: In APAC, there is still a high demand for cloud services due to both the government's push for digitalisation and the desire of businesses to be future-proof to ensure business continuity. APAC already makes for 14 per cent of all cloud spending worldwide, and the cloud business there is expanding quickly.
Navigating the APAC cloud market is challenging due to the diverse levels of cloud maturity and readiness and the disparities in regulatory requirements and localisation needs. As obstacles are reduced, and the cost of entering new markets is reduced, cloud partners are becoming an increasingly significant factor in cloud adoption.
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In order to attract ISVs and promote cloud use, marketplaces are becoming increasingly important as a route to market. Distributor marketplaces support automated cloud and SaaS distribution and assist cloud providers.
Microsoft Azure came in second with a 26 per cent market share in Q2 2022. Azure has a strong channel presence and the largest market penetration in the SMB space. With its new Cloud Partner Program, which focuses on advancing the Azure business through partners, Microsoft aims to keep investing in the partner ecosystem to maintain its pace. More than half of its APAC income comes from the channel.
In APAC, Google Cloud held 9 per cent of the market. By establishing a collaboration with Ingram Micro in Southeast Asia this quarter to drive into SMB channels, it is expanding its reach into the distribution sector. It keeps focusing on a vertically-led go-to-market strategy and looks for partners who can support these initiatives. Thomas Kurian, CEO of Google Cloud, has emphasised his dedication to achieving 100 per cent partner attachment in each Google Cloud agreement.
The other 33 per cent of the market was made up of other cloud service providers, with significantly fewer indirect sales than the top three. Cloud service companies like Alibaba Cloud (9988: HKG), Huawei Cloud, and Tencent Cloud (0700: HKG) are launching new data centre areas and securing significant contracts to increase their footprint in Southeast Asia. Strong channel programs and strategies have yet to be demonstrated, despite some companies' plans to use the APAC channel as a primary route to market.
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