Hitachi Sunway Bets on Cloud for APAC Growth

IDC forecasts worldwide revenue from Public Cloud Services to reach more than USD195 billion in 2020

PETALING JAYA, NOVEMBER 22, 2016 --- Hitachi Sunway Information Systems Sdn. Bhd. (“Hitachi Sunway”), a leading one-stop IT services and solutions provider in ASEAN, today shares that it believes that cloud adoption will multiply economic growth in the region, and in turn be a major driver for its business as well.

Cheah Kok Hoong, Group CEO / Director of Hitachi Sunway Information Systems shares, “International Data Corporation (IDC) forecasts that worldwide revenue from public cloud services is projected to reach more than USD195 billion in 2020. More than double of the projected revenue for 2016, representing a compound annual growth rate (CAGR) of 20.4 percent over a 5 year period.”

He highlights that in 2015, 83.7 per cent of all public cloud revenue came from SaaS (Software-as-a-Service) and PaaS (Platform-as-a-Service), while the remaining 16.3 per cent came from Infrastructure-as-a-Service (IaaS).
*Note: In IDC’s definition, SaaS is a combination of applications as a service and system infrastructure software (SIS) as a service) while PaaS is also known as application development and deployment (AD&D)

“However by 2020, IDC says, IaaS and PaaS will grow at a faster rate than SaaS,” adds Cheah.

Hitachi Sunway currently owns and operates one of the leading data centres in the country, and is a forerunner in offering a multitude of cloud and managed services such as cloud hosting, data management and security for its customers in ASEAN.  

With presence across ASEAN, Hitachi Sunway is able to help their clients expand and operate across these seven nations with a vast portfolio that includes Enterprise Resource Planning (ERP), Product Lifecycle Management (PLM) to end-to-end Systems Integration, IT Security, Data Centre solutions, Cloud solutions, IT Outsourcing and many more.  

“IDC findings support our corporate direction to embark into offering our customers IaaS, PaaS, SaaS and more for our customers as we see cloud to be the enabler for the future economic growth of every industry in particular, manufacturing, health and customer oriented industries.

In the past companies have struggled with the cost of upgrading equipment and stayed stuck with legacy software and hardware that tend to be a hindrance for the companies growth. Technology has been moving faster than adoption rates simply because, the cost of replacing equipment is too big to be a regular operations cost,” says Cheah.

Understanding the need for an alternative method to legacy technology constraints, Hitachi Sunway began embarking on finding the right partners to offer IaaS, PaaS SaaS and more cloud offerings for the benefit of their customers. They are currently in talks with a few cloud platform providers.  

IDC predicts that by 2020, half of all new business software purchases will be of service-enabled software, with cloud consisting of more than a quarter of all software sold.

Manufacturing, banking, and professional services which represent nearly a third of total worldwide revenue in 2016, will lead the way in cloud adoption. IDC adds that Asia/Pacific (excluding Japan) (APeJ) and Latin America will see the biggest revenue growth in the forecasted period.

Cheah says, “As consumers demand for faster more flexible engagement increases, businesses can now break the traditional technology barrier with cloud computing to deliver services and advancements at a lower cost and faster rate.”

Legacy constraints are now a thing of the past as technology upgrades can be as simple as emailing your service provider and confirming the upgrade.

With quicker adaption of new technology, businesses will be able to safeguard and minimise business risks due to security risks that legacy tech is prone to be inflicted. Legacy tech has long been cited as the security gap in cyber security measures that are needed to keep company and customer data secure.

“With end-to-end infrastructure and software available in cloud, Hitachi Sunway is the ideal partner for customers looking to move into either private, public cloud or hybrid cloud effortlessly,” ends Cheah.