SINGAPORE & KUALA LUMPUR, Malaysia--(BUSINESS WIRE)--The markets for private and hybrid cloud services in Singapore and Malaysia continue to grow as providers increase investments in data centers across the region, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2023 ISG Provider Lens™ Private/Hybrid Cloud — Data Center Services report for Singapore and Malaysia finds that rising enterprise demand for exceptional computing resources, especially green data centers and hyperscaler capabilities, is driving data center expansion and modernization. Companies have a growing number of managed services, managed hosting and colocation options to choose from.
“Strong investments are turning Singapore and Malaysia into world-class data center services markets,” said Ben Rossiter, principal consultant, Technology Modernization, at ISG. “We expect providers to keep expanding managed hosting capacity.”
Enterprises in the region seek data center services to meet growing needs for security, sustainability, edge computing, customization and compliance, the report says. Many are turning to services using AI, ML and automation to address challenges related to rising costs and skilled labor shortages, which are expected to persist beyond the end of the decade.
Singapore and Malaysia are separate markets, due to regulatory, geopolitical and cultural factors, but the same technologies meet typical clients’ needs in both nations, ISG says. Global providers offer on-the-ground capabilities in both markets, more so in Singapore than Malaysia. However, Malaysia is catching up thanks to steady data center investments in both Kuala Lumpur and Johore Bahru, strategically located on the border with Singapore.
Edge computing applications are expanding in the region in asset-rich industries such as retail and utilities, though more slowly than anticipated, the report says. The use of these applications and IoT devices to reduce latency and achieve real-time data processing is creating additional demand for private and hybrid cloud resources.
Enterprises are also accelerating sustainability efforts in response to government and private-sector initiatives, especially in Singapore, ISG says. Data center strategies are often at the heart of these efforts, with companies shifting to greener locations, energy sources and management systems even faster than expected in 2022.
While public clouds are growing faster, private clouds still have utility for some enterprises due to factors such as data sovereignty, particularly in Malaysia, ISG says.
“The choice between public and private clouds depends on attitude and culture as well as technology,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “For many organizations, a hybrid approach offers the ideal mix.”
The report also explores other cloud trends in Singapore and Malaysia, including the need for skills development across the region and the growing popularity of data-center-in-a-box offerings.
The 2023 ISG Provider Lens™ Private/Hybrid Cloud — Data Center Services report for Singapore and Malaysia evaluates the capabilities of 35 providers across three quadrants: Managed Services, Managed Hosting and Colocation Services.
The report names Singtel and Telekom Malaysia as Leaders in all three quadrants. It names Fujitsu and Kyndryl as Leaders in two quadrants each. Accenture, DXC Technology, HCLTech, Infosys, NTT DATA, NTT GDC, Starhub, TCS, Telstra and Wipro are named as Leaders in one quadrant each.
In addition, Equinix is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant.
The 2023 ISG Provider Lens™ Private/Hybrid Cloud — Data Center Services report for Singapore and Malaysia is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.
