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Growing geopolitical disruptions and cybersecurity challenges are driving the adoption of sovereign cloud in APAC
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However, cloud maturity level of government orgs in the region lags when compared with other sectors
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Nations like Australia and New Zealand have high cloud maturity levels while India and Indonesia have low levels
Even as one-third of governments in Asia-Pacific plan to adopt sovereign cloud by 2026, only 4% of government agencies have an optimized level of cloud maturity, according to recent research by IDC.
Specifically, “In 2023, only 4% of AP's government agencies surveyed by IDC identified as having an optimized level of maturity, with well-resourced and actively managed cloud teams,” Ravikant Sharma, research director, government insights at IDC Asia/Pacific, told Fierce Network.
“Countries where a third or more are at high levels of cloud maturity include Australia, New Zealand, South Korea, Singapore and Taiwan. Conversely, relative low levels of cloud maturity are found in India, Indonesia, Malaysia, the Philippines and Thailand,” he added.
Crucial cloud maturity
Cloud maturity is crucial and offers benefits to organizations, depending on their stage of the cloud journey.
“Early adopters can take advantage of sovereign cloud-first solutions, bypassing the need to migrate existing workloads and data," explained Sharma. "Additionally, the focus on security and compliance aligns well with the capabilities typically offered by sovereign cloud solutions. Moreover, it enables governments to establish clear standards and regulations for cloud adoption, enhancing control over data and infrastructure."
About 17% of the surveyed government agencies in the Asia-Pacific region are already using sovereign cloud services, while a third plan to adopt one in the next two years. On the other hand, 36% of those surveyed are evaluating the feasibility of the solutions but have yet to finalize their decisions, according to IDC.
Around 20% of the government organizations in the region are likely to increase investment in sovereign cloud solutions. However, growing interest in sovereign clouds with low levels of maturity means that government organizations would need to mature quickly to leverage the benefits of the cloud.
“Overall, the [Government sector in Asia-Pacific] sector lags behind other industries, with three-quarters still identifying their maturity as ad hoc or opportunistic, compared with half of other industries,” as per IDC's 2023 Asia/Pacific Cloud Survey.
IDC categorizes sovereign cloud as a subset of digital sovereignty, which it defines as “the capacity for digital self-determination by nations, organizations, and individuals."
In sovereign cloud, the cloud computing infrastructure is owned and managed by the government or trusted parties in the country or region. This not only gives better control over sensitive data but also addresses the unique needs of the governments.
Sovereign cloud market forces
Several market forces are driving the adoption of sovereign cloud by organizations and government agencies in the region. Geopolitical disruptions, coupled with cyber threats to government assets and changes in data protection regulations, are leading to an increase in sovereign cloud adoption. For instance, the Digital Personal Data Protection Act of 2023 enacted in India last year, mandates stringent conditions for data sovereignty, making it imperative for government organizations to adopt sovereign cloud.
Several hyperscalers, like Amazon Web Services (AWS) and Google Cloud and major cloud service providers, such as IBM, Oracle Sovereign Cloud and VMware/Broadcom Sovereign Cloud, are investing in the Asia Pacific region and changing their offerings in line with the evolving local regulations. For instance, last year, AWS launched its dedicated Local Zones with Singapore’s Smart Nation and Digital Government Group (SNDGG) to address the country’s digital sovereignty needs.
However, the adoption of a sovereign cloud is not without challenges. “Forty percent of respondents worry about high implementation costs, while 36% fear it may slow down innovation. As with new technologies, the sovereign cloud ecosystem will mature over time, requiring partnerships with providers offering durable, future-proof solutions,” explained Sharma.
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