Cloud is growing
Malaysia’s ICT Spending for 2020 is expected to decline following the COVID-19 outbreak but an increase in interests towards cloud related services can be observed. Recent data and surveys indicate that there is a strong and steady growth towards investments and adoption of cloud services in 2020. This is because cloud-based applications and storage options has shown to allow businesses to continue operations as opposed to shutting down which is a big factor in long term sustainability.
A recent survey by the International Data Corporation (IDC) shows that organizations indicate a strong sentiment towards increasing investments for cloud services in 2020. The survey can be viewed here.
Going digital & online services
The past few months have seen a change in the way resources are consumed and utilized. Traditional business practices and media have seen a sharp decline in popularity with countries going into shutdown and stay at home orders being issued. Online services that caters to media content, shopping, learning, and etc. have instead prospered with massive growth numbers which has increased the demand for internet bandwidth, cloud-based services, and social collaborative platforms.
Recognition and prioritize
Given the role that ICT infrastructure has played in how the current pandemic is managed, governments are much more aware of how cloud services and online communication are able to bring about socioeconomic benefits. The effects of this can be seen in the stimulus package that the Malaysian government issued to help employees and employers to either upgrade their existing infrastructure or to engage in training and adapt to the new changes.
While many business owners, including those who have been relying heavily on hardware infrastructure, may have realized the benefits of adopting cloud services, some may still be hesitant to migrate due to a technical skills gap and cost concerns. Most companies (83% LLs and 84% SMEs) highlighted difficulties in their online connectivity and communication with customers and suppliers, in addition to their need for better infrastructure. COVID-19 managed to change the mindset of Corporate Malaysia towards Digital Transformation where previous efforts failed.
Source: COVID-19 Business Impact Survey by EY; survey done online across 670 companies. Full survey can be viewed here
Time to act
Digital connectivity will be the key to restarting the economy in the upcoming months and years which requires companies to update their ecosystem and transform the way their operations function with the utilization of cloud, IOT, and AI. The time to act and invest is now for us to start preparation in order to stay competitive and relevant which can only benefit both employees and employers.