Asia Pacific Demand for Cloud Solutions Reaches Record High in Q1, ISG Index Finds - Seite 2

Trailing 12-Month Performance

Over the trailing 12 months, regional ACV in the as-a-service segment advanced 19.4 percent, to US $5.7 billion, representing 69 percent of the combined market, while ACV for managed services declined 5.8 percent, to US $2.6 billion, despite market vigor in China and India.

Within the as-a-service segment, IaaS soared 25.3 percent, to US $4.9 billion, as demand for public cloud surged. A notable example of this shift was the migration of China’s Alibaba to its own public cloud. Google and Microsoft, meanwhile, have launched development centers in India, and Microsoft struck a 10-year deal with Reliance Industries to move its data centers to the Azure cloud. Hankook Tire in South Korea, also expanding its use of public cloud, signed with AWS to leverage its AI and Big Data capabilities.

Within managed services, ITO dipped 9 percent, driven by a double-digit decline in Infrastructure services, even as application services shored up overall ITO results. The much smaller BPO market regained some momentum, with facilities management and industry-specific BPO fueling ACV gains.

Among industries in Asia Pacific, telecom and media (up 50 percent), manufacturing (up 41 percent) and business services (up 18 percent) were the largest percentage gainers in combined market ACV. Financial services (down 23 percent), travel, transport and leisure (down 11 percent) and energy (down 6 percent) registered the biggest declines.

Global Forecast

ISG said it expects managed services ACV to decline 17 percent sequentially in the second quarter as overall spending slows in response to the pandemic. For the full year, ISG projects managed services spending will be down 7 percent versus the prior year. This compares with ISG’s preliminary forecast in January of 3.2 percent annual growth for 2020.

Second-quarter as-a-service ACV is expected to be flat, quarter over quarter, with some upside potential for IaaS, ISG said. For the full year, ISG forecasts as-a-service ACV will be up 12 percent versus the prior year. This compares with ISG’s preliminary forecast in January of 23.5 percent annual growth for 2020.

About the ISG Index

The ISG Index is recognized as the authoritative source for marketplace intelligence on the global technology and business services industry. For 70 consecutive quarters, it has detailed the latest industry data and trends for financial analysts, enterprise buyers, software and service providers, law firms, universities and the media. In 2016, the ISG Index was expanded to include coverage of the fast-growing as-a-service market, measuring the significant impact cloud-based services are having on digital business transformation. ISG also provides ongoing analysis of automation and other digital technologies in its quarterly ISG Index presentations.