Hong Kong cloud adoption fuels digital transformation

Hong Kong cloud adoption fuels digital transformationThe cloud computing market in Hong Kong continues to grow in 2016. With the maturity of cloud computing technologies and increased cloud adoption, many Hong Kong enterprises have realized the advantages of cloud. They are willing to leverage cloud services to boost their business performance and to create innovative service offerings.

To name a few, DBS Bank adopted the hybrid cloud model and expected to shift up to 50% of its compute workload to the cloud in two years. The HSBC has also tapped into a cloud infrastructure to deliver its forecast customer data from its core banking systems. In the retail space, Lane Crawford has adopted infrastructure-as-a-service to flexibly accommodate the changing demands due to seasonal shopping, sales and promotional activities.

Speaking of digital transformation, Centaline last month launched a cloud-based video value-added service with Microsoft Hong Kong and TFI Digital Media. The service enabled some 4,500 property agents to shoot, edit and upload video footages of residential properties to a central database via mobile devices.

Increased adoption and spending

Back in January, IDC optimistically predicted that 65% of Asia Pacific enterprises would commit to implementing hybrid cloud architectures in 2016.

Most cloud vendors agreed that customers have spent more on cloud computing in 2016, albeit for different purposes. For example, CITIC Telecom CPC’s Senior VP of IT and Security Services Daniel Kwong said the increased cloud spending was largely driven by IT services consolidation for easy operations management, big data analytics and disaster recovery. Microsoft Hong Kong’s General Manager Horace Chow noted an increase in cloud spending on cloud development.

In 2016, the business market in Hong Kong was in an overall sluggish state. "The US presidential election result in November further created uncertainties to the global business market," Kwong commented.

Understandably, cost savings was one key reason why organizations increased their bets on cloud services. With the star attribute of scalability for cloud computing, together with the ability to shift capex to opex, customers expect to increase business agility with cloud adoption.

For cost-conscious organizations, the fact that some cloud infrastructures dropped in prices had stimulated the growth of cloud tools and applications, according to Ajit Melarkode, vice president and managing director of Rackspace Asia Pacific.