At the technology level, Hybrid IT has established itself as the new normal and will continue to dominate enterprise IT decision making in 2016.
Lastly, Frost & Sullivan expects 25 percent of all enterprise IT workloads to move to the cloud by 2020, up from 12 percent in 2015.
Overall, the data centre and cloud computing services market is expected to grow at a healthy CAGR of 20.5 percent to reach $US77.3 billion in 2020 from $US30.4 billion in 2015.
Internet of Things
The Internet of Things (IoT) market is one of the fastest growing segments in the Asia Pacific technology industry.
The total Asia Pacific spending on IoT spending is forecasted to be $US79 billion by 2020.
“This offers real opportunities, especially in areas of transportation, logistics, manufacturing and consumer technology, which are expected to be fast growing segments over the next three years,” Sunder adds.
The Internet of Things market is evolving from one where the focus is on connecting of devices to one of using the information collected to create new services and business models - this is fundamentally changing the way companies market their products and services.
“With IoT, companies are moving from transactional product sales to a longer term relationship and service model, where everything can be offered as a service or 'servicetisation of industries’,” adds Mark Koh, Senior Industry Analyst of ICT Asia Pacific, Frost & Sullivan.
“As IoT moves from consumer and enterprise centric applications to vertical/ industrial applications, the potential growth of IoT is expected to exponentially grow over the next 5 years.”
Cyber security
Cyber security has become one of the hottest topics now, not only among enterprises, but also government organisations due to the physical consequences.
The spending in cybersecurity, as such, is expected to grow fast in the upcoming years, especially the spending on security solutions to protect critical infrastructure and ICS systems.
Investment in solutions and services to defend against advanced malware, advanced persistent threat, targeted attacks or DDoS attacks is also poised to increase significantly in the upcoming year.
In particular, the Industrial Control System Security market is forecast to grow rapidly at a CAGR of 45.2 percent from 2015-2020, reaching revenues of $US1.5 billion at the end of the forecast period.
The importance placed on ICS security by governments in the APAC region is the key driving force for the strong growth.
The need to have the capability to manage risks to enable comprehensive security policy throughout organisations is driving enterprises and organisations to invest more in advanced security solutions, expertise as well as threat intelligence.
Enterprises are increasingly taking a more proactive approach towards cybersecurity to be able to stay ahead of any potential risks, enhancing their holistic defence strategy.
“Adopting an eco-system approach toward security will not only allow enterprises to have the capability to prevent, detect and remediate the threats using technology tools, but also help them build a strong capability of management of both internal and external threats with suitable governance process,” adds Edison Yu, Director of ICT Asia Pacific, Frost & Sullivan.
Unified Communications
The Asia-Pacific Unified Communications & Collaboration (UCC) market progressing well towards maturity as increasingly it is perceived as a strategic investment.
Organisations’ continuous need to improve overall efficiency, productivity and competitiveness will drive demand for UCC solutions.
The Asia-Pacific UCC market presents a $US9.1 billion opportunity by 2020, growing steadily at a CAGR of 5.2 percent.
The UCC market is going through rapid transformations in technology and in the way it is delivered - this will drive momentum shift towards UC services instead of the existing on-premise deployment.
Going forward, the UC Services is expected to contribute up to 40 percent of the market in five years compared to current 30 percent.
“The way people collaborate is in the midst of an enormous shift,” adds Krishna Baidya, Associate Director of ICT Asia Pacific, Frost & Sullivan.
“The convergence of synchronous and asynchronous tools will lead to all-in-one virtual workspaces that offer always-on collaboration opportunities with teams in a mobile-centric world.
“Users will demand a converged communication platform that offers seamless experience where focus will be on business outcome rather than technology.”
