An increasing number of businesses in the Asia Pacific region are enjoying the benefits that come with a hybrid IT environment, according to Frost & Sullivan.
As well as allowing for a smoother digital transformation, hybrid IT is proven to improve the customer experience and prompt business model innovation, the consulting firm said.
Businesses have identified the potential opportunities, with more than half of the firms surveyed by Frost & Sullivan stating they have plans to move to a hybrid IT environment within the next 12 to 18 months.
With that, vendors and services providers are being asked to up their game to cater for the new business models, but the 'Asia-Pacific Data Center and Cloud Computing Market Update 2015' report suggests they have accelerated the pace of service innovation accordingly.
Mayank Kapoor, industry principal for data centers and cloud computing in Asia Pacific, says that cloud technology is proving the key to the adoption of new technologies such as big data, the IoT and connected industries – with three sectors, in particular, leading the way on implementation.
He said: "These new technologies are also driving industry transformation. From our research, we have identified the three industry verticals at the forefront of such transformations, namely manufacturing, automotive and healthcare."
Frost & Sullivan research estimates the market in Asia-Pacific to have been worth US$25.7 billion in 2014. Driven by the cloud services segment, it is expected to grow at a compound annual growth rate in the region of 20% over the next five years to reach US$65.2 billion by the end of 2019.
Kapoor uses Singapore as an example, explaining how the nation is expected to see investments worth over a billion dollars over the next three years to establish more than 1 million square feet of raised floor space.
"We at Frost & Sullivan believe that this is the start of the Everything as a Service (XaaS) era, with managed services at the heart of it," he added.