capioIT regularly writes about the importance of the ASEAN market. The size of the market, larger than Latin America, is underestimated. The diversity of the market is also underestimated. As much as any other sub-region of the world, the diversity is in the detail, countries are not the same on virtually any measure in comparison with each other let alone within their borders.
Unfortunately, it is also a market that has not been able to make the most of the cloud opportunity despite recent aggressive uptake of solutions across the spectrum. Of course, there are multiple reasons for this. Regulatory issues are complex in most of the countries, data centre ownership legalities are not easy. Not surprisingly there are increasingly strict rules about the location of data, and what data must be stored within the country, as well as privacy etc. Networks may not be up to speed.
Skills are also lacking in the region. Whilst this has improved in recent years, it remains a valid concern and one that requires more investment from industry and the individual governments. Markets such as Indonesia and Thailand still struggle with skills. More needs to be done to develop this. Cloud investment can be the trigger.
We believe that the opportunity in ASEAN is to develop tier 2 type locations to overcome the data location issue is very significant and immediate. Whilst Singapore is represented by every major cloud provider, this does not equate to having coverage in the region.
Whoever builds a model that economically works in these markets will gain first-mover advantage and in the medium term potentially block competition. Obviously work is already underway by the major cloud providers to develop such a solution, they have to accelerate it. Capability will need to balance the more limited scale opportunity in the short term with genuine cloud offerings that meet the market from a pricing and function perspective.
In most markets, whilst there are local cloud providers, they do not have the function, form or capability to integrate into a global cloud network. Therefore much of the heavy lifting will have to be done by the major cloud operators. It is a long game investment strategy, but as highlighted, the first mover advantage is massive.
ASEAN has the three largest opportunities, there are many countries around the world that will benefit from this cloud function in the more modest footprint.
capioIT has ranked the following markets from a short and long term opportunity perspective globally. As expected three are in ASEAN
Core Short Term Market Opportunities
- Indonesia
- Thailand
- Philippines
- Saudi Arabia
- Russia
- Turkey
Longer Term Market Opportunities
- Argentina
- Chile
- Vietnam
- Bangladesh
- Sri Lanka
- Nigeria
- Kenya
- Morocco
- Egypt
- Peru
- Colombia
Capture Point
Opportunities for cloud computing are being left at the table in emerging and tier 2 or 3 countries. First mover advantage is immense if executed correctly,
Clearly, some of these countries represent real challenges in terms of network and telecommunication capabilities as well as regulatory, business stability and ease as well as overall business demand. Partnerships will help with this as will successful and clear-headed investment plans.
If you require further information, please contact Phil Hassey, CEO of capioIT. capioIT is an advisory firm focused on helping organisations to understand emerging technology as the world becomes Digital. Phil may be contacted easily in the digital and real world.
phil@capioit.com
