The Billion Dollar Cloud Computing Opportunity

BMI View: There is an increasing demand for cloud computing services by Indonesian enterprises. As cloud computing infrastructure remains in the nascent stage, this gives investment opportunities to data centre providers and telecoms operators. BMI predicts the cloud computing market will reach IDR13.6trn (US$1.3bn) by 2018.

As cloud computing becomes a more widely used tool for companies, there will be an increase in demand for facilities by all sizes of enterprise in Indonesia. In 2012, cloud computing spending in Indonesia was IDR2.2trn; a figure we predict will balloon by 2018. Much of the growth is due to fact that Indonesian enterprises have better understanding of this technology and are more receptive towards its usage. Based on survey by Springboard Research in 2011, the development of the use of cloud computing in Singapore has reached to 29%, in Malaysia 27%, Korea 55%, but only 20% in Indonesia. The gap highlights growth potential from the demand side.

To understand what drive cloud computing demand in Indonesia, a survey was carried out by University of Indonesia in March 2012. The result proved that cost-effectiveness, security and reliability of the systems guide decision making on the application of cloud computing. The entry of global participants and marketing initiatives in the form of conferences and road shows are expected to drive awareness level and adoption in the long run. That said, operators need to allay the Security and Privacy concerns enterprises still harbour towards cloud computing to increase acceptance in the short term.

Huge Potential For Companies With Early Take-Up
Indonesia Cloud Computing Spending

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This article is tagged to:
Geography: Indonesia