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January 17, 2019

Nearly half of Asia Pacific enterprises are proceeding on a hybrid cloud pilot without a formal strategy, NTT Communications warns

HONG KONG (January 17, 2018)NTT Communications Corporation (NTT Com), the information and communications technology (ICT) solutions and international communications business within the NTT Group (TYO: 9432), today announced that 44 per cent of enterprises in Asia Pacific are going ahead with implementing a hybrid cloud without a formal strategy in place, according to a new 451 Research survey whitepaper.

The survey whitepaper "Going Hybrid: Demand for Cloud and Managed Services Across Asia-Pacific", was commissioned by NTT Communications in partnership with VMware, Inc. and conducted in six countries (Australia, Hong Kong, Indonesia, Malaysia, Singapore and Thailand) in Q3 2018. It analyzes prevailing technology choices, service provider preferences, service priorities, and measures of hybrid cloud strategy and execution.

Multi-cloud has become the norm for most enterprises across Asia Pacific. Over 90 per cent of businesses surveyed have multiple cloud environments with varying degrees of interoperability, and more than half said they are already using hybrid cloud. However, nearly 44 per cent have begun implementing hybrid cloud pilots without an overarching hybrid strategy in place.

"Alarmingly a significant portion of large enterprises lack a formal hybrid-cloud strategy. While they recognize the potential benefits, they underestimate the technical complexity which may derail their business modernization efforts if they do not have a future-proof hybrid cloud plan," said Dave Scott, Solutions Director, NTT Communications Managed Services.

Three different paths to hybrid cloud migration: cloud-first, lift-and-shift, and refactor-and-shift

Enterprises are found to be actively considering an off-premises cloud as a critical component of their business modernization strategy, while hybrid cloud offers intermediary steps in their business transformation. The survey found that more than half of enterprises primarily emphasize migrating workloads from their internal environments when deploying into public cloud. However, there is no predominate approach of their cloud migration - currently 28 per cent focused on a ‘lift and shift' approach and another 28 per cent refactoring before moving. Another third focused on the public cloud for net new applications.

In terms of hybrid workload deployment plans, there is little uniformity across all the businesses. In the next two years, CRM/sales and marketing (49 per cent), database and data warehousing (48 per cent) and file and content storage (47 per cent) will be the key focus for workloads to be shifted to the hybrid cloud environments, up from 25, 28 and 28 per cent respectively. The strong traction indicates enterprises' growing confidence in hybrid cloud to support their full spectrum of business requirements and application portfolios.

Managed services: course-correction required for enterprises lacking a well-thought-out hybrid cloud and security strategy

Another key consideration to drive hybrid cloud migration is security and compliance, which 95 per cent of enterprises rated as its top requirement. In addition, nearly half of respondents pointed to improvements in the consistency of security policies across environments and better management of risk – challenges that can emerge as businesses begin to employ multiple cloud environments.

Enterprises embarking on a hybrid cloud strategy must ensure they build in security, but designing and applying security for hybrid cloud is challenging, and a task that is sometimes outside the capabilities of an organization's own security team. More than 50 per cent of enterprises pointed to the fact that they use managed services at some point in their cloud journey.

Beyond security, enterprises are also turning to managed services providers that support both the initial design and implementation of hybrid cloud, as well as its ongoing operation, to continually optimize workloads between various infrastructure environments for the best mix of performance, availability, security and cost.

"End-to-end managed services and compliant-ready security management are increasingly becoming a strategy to future proof company's business growth paths," Scott added.

All enterprises are at different stages in designing, implementing and operating their workloads or systems in a hybrid cloud environment. NTT Communications' Managed Services is well positioned to offer smart, reliable and secure IT solutions through their full spectrum of managed services. For instance, enterprises can immediately tap into NTT Communications' global resources and capabilities such as high-speed networks, a global footprint of data centers and cloud services, with only a single contract and one service-level agreement (SLA).

To learn more about the state of hybrid cloud adoption in Asia Pacific, download the full report here: www.nttcominsight.com/go-hybrid

About the research

451 Research carried out an independent study of 464 IT decision-makers representing Asia- Pacific's largest businesses in key vertical markets in Q3 of 2018. Businesses surveyed have 1,000-100,000+ employees, and more than three-quarters have annual revenue of more than US$1 billion. Based on the results of that study, this report provides insight about hybrid cloud planning and management, drivers and inhibitors, and factors that are influencing the choice of platforms, tools, technologies and managed services, both currently and in the next couple of years.

About NTT Communications

NTT Communications solves the world’s technology challenges by helping enterprises overcome complexity and risk in their ICT environments with managed IT infrastructure solutions. These solutions are backed by our worldwide infrastructure, including industry leading, global tier-1 public and private networks reaching over 190 countries/regions, and more than 400,000m2 of the world’s most advanced data center facilities. Our global professional services teams provide consultation and architecture for the resiliency and security required for your business success, and our scale and global capabilities are unsurpassed. Combined with NTT Data, NTT Security, NTT DOCOMO and Dimension Data, we are NTT Group.
www.ntt.com | Twitter@NTT Com | Facebook@NTT Com | LinkedIn@NTT Com

For more information

NTT Com Asia Ltd
Priscilla Kwok
Tel: +852 3793 0937
Email:priscilla.kwok@ntt.com.hk

Ogilvy Public Relations
Serena Chow/ Terence Nip
Tel:+852 2884 8591 / +852 2884 8517
Email:serena.chow@ogilvy.com / terence.nip@ogilvy.com

2019-R004

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