The Verdict is In: Hybrid has Won the Cloud Battles
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At the Nutanix .NEXT 2024 event in Barcelona, it became clear that the discourse around cloud computing has evolved significantly. The debate that once polarised organisations over whether on-prem/co-located data centres or public cloud was better has been decisively settled. Both cloud providers and on-prem equipment providers are thriving, as evident from their earnings reports. 

Hybrid cloud has emerged as the clear victor, offering the flexibility and control that organisations demand. This shift is particularly relevant for tech buyers in the Asia Pacific region, where diverse market maturities and unique business challenges require a more adaptable approach to IT infrastructure. 

The Hybrid Cloud Advantage 

Hybrid cloud architecture combines the best of both worlds. It provides the scalability and agility of public cloud services while retaining the control and security of on-prem systems. For Asia Pacific organisations, that often operate across various regulatory environments and face unique data sovereignty issues, this dual capability is invaluable. The ability to seamlessly move workloads between on-prem, private cloud, and public cloud environments enables enterprises to optimise their IT strategies, balancing cost, performance, and compliance. 

Market Maturity and Adoption in Asia Pacific 

The region shows a wide spectrum of technological maturity among its markets. Countries like Australia, Japan, and Singapore lead with advanced cloud adoption and robust IT infrastructures, while emerging markets such as Vietnam, Indonesia, and the Philippines are still in the nascent stages of cloud integration. 

However, regardless of their current maturity levels, organisations in Asia Pacific are recognising the benefits of a hybrid cloud approach. Mature markets are leveraging hybrid cloud to refine their IT strategies, focusing on enhancing business agility and driving innovation. 

Ecosystm research shows that 75% of organisations in Australia have a hybrid, multi-cloud strategy. Over 30% of organisations have repatriated workloads from the public cloud, and only 22% employ a “cloud first” strategy when deploying new services.  

Hybrid Cloud has become mainstream in Australia

Meanwhile, emerging markets see hybrid cloud as a pathway to accelerate their digital transformation journeys without the need for extensive upfront investments in on-prem infrastructure. Again, Ecosystm data shows that when it comes to training large AI models and applications, organisations across Southeast Asia use a mix of public, private, hybrid, and multi-cloud environments. 

Where AI Applications are trained/maintained in SE Asian organisation

Strategic Flexibility Without Compromise 

One of the most compelling messages from the Nutanix .NEXT 2024 event is that hybrid cloud eliminates the need for compromise when deciding where to place workloads – and that is what the data above represents. The location of the workload is no longer a limiting factor. Being “cloud first” locks organisations into a tech provider, whereas agility was once exclusively in favour of public cloud providers. Whether it’s for performance optimisation, cost efficiency, or regulatory compliance, tech leaders can now choose the best environment for every workload without being constrained by location. 

For example, an organisation might keep sensitive customer data within a private cloud to comply with local data protection laws while leveraging public cloud resources for less sensitive applications to take advantage of its scalability and cost benefits. I recently spoke to an organisation in the gaming space that had 5 different regulatory bodies to appease – which required data to be stored in 5 different locations! This strategic flexibility ensures that IT investments are fully aligned with business objectives, enhancing overall operational efficiency. 

Moving Forward: Actionable Insights for Asia Pacific Tech Leaders 

To fully capitalise on the hybrid cloud revolution, APAC tech leaders should: 

  1. Assess Workload Requirements. Evaluate the specific needs of each workload to determine the optimal environment, considering factors like latency, security, and compliance. 
  2. Invest in Integration Tools. Ensure seamless interoperability between on-premises and cloud environments by investing in advanced integration and management tools. 
  3. Focus on Skill Development. Equip IT teams with the necessary skills to manage hybrid cloud infrastructures, emphasising continuous learning and certification. 
  4. Embrace a Multi-Cloud Strategy. Consider a multi-cloud approach within the hybrid model to avoid vendor lock-in and enhance resilience. 

Conclusion 

The hybrid cloud has definitively won the battle for enterprise IT infrastructure, particularly in the diverse Asia Pacific region. By enabling organisations to place their workloads wherever they make the most sense without compromising on performance, security, or compliance, hybrid cloud empowers tech leaders to drive their digital transformation agendas forward with confidence. Based on everything we know today*, the future of cloud is hybrid. Reform your sourcing practices to put business needs, not cloud service providers or data centres, at the centre of your data decisions. 

*In this fast-changing world, it seems naïve to make sweeping statements about the future of technology! 

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Tim Sheedy is the VP of Research at Ecosystm - a digitally native technology research and advisory firm. Tim brings more than 20 years of experience in designing and implementing cloud, IoT, AI and automation strategies to the Ecosystm network, to support businesses in their IT decisions. In his role he sets the research strategy for Ecosystm, and works with the advisor and analyst community to deliver a future vision for the technology sector. In his previous role, Tim spent 12 years at Forrester Research, most recently as a principal analyst, helping IT leaders improve their digital capabilities. Prior to this, he was research director for IT solutions at IDC in Australia, where he assisted IT vendors in designing solutions to better fit market requirements, and IT buyers in improving the effectiveness of their IT functions. Beyond the office, he boasts an international reputation as an entertaining and informative public speaker on the key trends in the IT market. He graduated from University of Technology Sydney with a BA majoring in Marketing and Research. In his free time, Tim enjoys bushwalking, playing football (badly!) and tennis and watching the amazing Wolverhampton Wanderers play the beautiful game, and the terrible Waratahs butcher the game they play in heaven


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