VMware

Singapore CIOs Driving Cloud Adoption

Concerns Over Data Privacy Propelling Preference For Hybrid Clouds  

  • C-suite executives are the primary decision-makers for cloud adoption
  • Increase in cloud adoption despite concerns
  • Data privacy/residency is the top barrier to cloud computing adoption
  • Enterprises overwhelmingly prefer a hybrid cloud over a public cloud model
  • Companies want to partner with telecommunications service providers

  SINGAPORE – November 9, 2011 — VMware, Inc. (NYSE: VMW), the global leader in virtualization and cloud infrastructure, today revealed the Singapore findings of the Cloud Computing in Asia Pacific: The Annual Cloud Maturity Index, a commissioned research study conducted by Forrester Consulting on behalf of VMware in October 2011. The survey was compiled through interviews with 6,141 business and IT decision-makers in Asia Pacific, and included 186 respondents in Singapore across multiple vertical sectors.

Over 50 percent of local respondents surveyed said their CIO or CEO is the final decision maker for cloud purchases. This reflects growing recognition of the importance of cloud technology to corporate success. Unique to Singapore was the high proportion of respondents who said their CIO is the final decision maker for cloud purchases (52 percent), compared to the regional average of 39 percent.

Despite the optimism of the benefits of cloud computing, 79 percent of respondents – the highest in the region – cited data privacy as a barrier to adoption, ahead of other concerns around security and integration with existing systems.

“Cloud adoption is clearly being driven by the top of the organization in Singapore, and we have seen the role of the CIO, in particular, evolve into that of a ‘Chief Innovation Office’ who champions future-proof technologies to drive business agility and efficiency,” said Ed Lenta, general manager, VMware ASEAN. “However, we will have to address the concerns they have in order for companies to fully embrace cloud computing as a strategic business tool.”

  Cloud Adoption Moves Ahead in Spite of Challenges

Currently in its second year, the Index found that 63 percent of Singapore firms are either currently using or actively planning cloud initiatives – compared to 53 percent in 2010. Cloud adoption was found to increase with the size of the organization surveyed, with 45 percent of respondents from firms of more than 10,000 employees indicating that they are already using a cloud computing solution.

Telecommunications companies and government agencies led in terms of organizations that have already implemented cloud initiatives, while education and manufacturing companies led by way of planned deployments.

Hybrid Clouds on the Ascent as Companies Adopt Virtualization  

Singapore companies are rapidly virtualizing with 77 percent of respondents citing it as a critical step towards cloud computing. In fact, 82 percent of respondents indicated the need to adopt virtualization for its server/datacenter capabilities (82 percent). Three-quarters of respondents in Singapore said their organizations have already adopted virtualization with 20 percent planning to adopt it in the future.

Most companies in Singapore indicated a greater likelihood to use or consider a combination of public and private clouds (38 percent) while 34 percent chose private clouds. The exclusive use of public clouds was the least popular (five percent) due to concerns over the security of corporate data and applications.

The Annual Cloud Maturity Index also found that the role of telecommunications service providers is expected to change as cloud adoption continues. In fact, 63 percent of local respondents and 70 percent of MNCs surveyed said they expect the roles and importance of hosting service providers to increase within their organizations.

“Serious concerns over data privacy and security have led local respondents to show a strong preference for a hybrid cloud model,” said Lenta. “We believe that seamless federation of information between public, private and hybrid clouds is critical to realizing the true benefits of cloud computing.  With that in mind, our partnership with SingTel in Singapore and other VMware Service Provider Program partners will ensure the secure provision of enterprise-grade solutions and management tools that work transparently across our customers’ different cloud environments.”

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About the Cloud Computing in Asia Pacific: The Annual Cloud Maturity Index

The Cloud Computing in Asia Pacific: The Annual Cloud Maturity Index was compiled through interviews with 6,141 senior business and IT decision makers from eight Asia Pacific countries – Australia, China, India, Japan, Korea, Malaysia, Singapore and Thailand – involving companies from the technology, telecoms, government, manufacturing, insurance, financial services, healthcare, transport/logistics, education and retail industries. The study included small and medium sized enterprises with fewer than 100 employees and multinational corporations with more than 10,000 staff.

About VMware

VMware is the leader in virtualization and cloud infrastructure solutions that enable businesses to thrive in the Cloud Era.  Customers rely on VMware to help them transform the way they build, deliver and consume Information Technology resources in a manner that is evolutionary and based on their specific needs. With 2010 revenues of $2.9 billion, VMware has more than 300,000 customers and 25,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com . 

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Media Contacts:                                                                                 

Clement Teo

Head, Communications ASEAN VMware

Email: cteo@vmware.com   

Office: +65 6501 2080

 

Mark Koh

Hill & Knowlton PR for VMware

Email: mark.koh@hillandknowlton.com.sg

Office: +65 6390 3346

Mobile: +65 9022 3938