Digital transformation in the Philippines has moved from being a goal to an essential part of how organisations operate, compete, and serve their communities. This shift is evident across sectors – from financial services and government to education, healthcare, and commerce – as digital platforms become integral to everyday life.
In recent years, the country has been recognised as a leading improver in the UN E-Government Development Index, reflecting steady advances in digital public service delivery. Yet, progress across all sectots has been uneven, influenced by a mix of geography, regulation, and existing infrastructure. Organisations continue to adapt, responding to fast-paced technological change, rising user expectations, and an increasingly interconnected global digital economy.
Through a series of roundtables with national leaders, Ecosystm examined the realities of digital transformation on the ground. What emerged were valuable insights into what’s working and where challenges and shifts are reshaping the definition of success in this evolving stage of digital maturity.
Theme 1: Strengthening the Foundations for Nationwide Digital Equity
The Philippines is advancing steadily in digitalisation, especially in Metro Manila and major urban centres, though the full benefits have yet to reach all regions evenly. Rural provinces and smaller islands face ongoing challenges with broadband access, latency, and mobile coverage, reflecting the country’s unique geography and historic underinvestment in digital infrastructure.
National programs like the National Broadband Plan and Free Wi-Fi for All have established important foundations. Fibre rollouts by private telecom providers are extending coverage, but last-mile connectivity in geographically isolated and disadvantaged areas (GIDAs) still needs attention. Bridging this gap is key not only for broader inclusion but also to enable widespread adoption of technologies such as cloud computing, AI, and edge solutions.
Achieving nationwide digital transformation requires a focused effort on regional infrastructure as a driver of inclusive growth. This involves co-investment, innovative public-private partnerships, and policies supporting shared towers, data centres, and satellite-backed connectivity. This benefits enterprises and critical citizen services like e-learning, e-health, and digital banking.
Theme 2: From Outsourcing Hub to Innovation Engine – The Next Chapter for Talent
The Philippines has established a strong global presence as a trusted centre for BPO and IT-enabled services, contributing nearly 9% to the national GDP and employing over 1.5 million professionals. In recent years, this foundation has rapidly evolved, with talent increasingly taking on complex roles in knowledge process outsourcing (KPO), AI annotation, fintech support, and cybersecurity operations.
This shift reflects a broader transformation – from a labour-cost-driven outsourcing model to a high-skill, innovation-focused services economy. However, this transition is placing growing demands on the talent pipeline. Skilled cloud engineers, AI developers, and cybersecurity experts remain in short supply, with demand surpassing the current capacity of training and reskilling programs.
To fully unlock its potential, the country needs to future-proof its talent ecosystem. This includes expanding technical education, strengthening collaboration between academia and industry, scaling national upskilling initiatives, and creating incentives that encourage tech professionals to build their careers locally. With targeted investment, the digital workforce can become a powerful competitive advantage on the global stage.
Theme 3: Government Digitalisation Is Accelerating – But Interoperability Remains a Challenge
The Philippines has made major progress in digitising government services – from online business registrations via Business Name Registration System (BNRS) to digital ID rollout through PhilSys (Philippine Identification System), and integrated platforms like eGov PH Super App. The pandemic accelerated adoption of e-payment systems, telemedicine, and virtual public services, driving faster digital transformation across agencies.
Despite this progress, interoperability challenges remain a key hurdle. Many government agencies still rely on siloed legacy systems that limit seamless data exchange. This fragmentation affects real-time decision-making, slows service delivery, and creates a fragmented experience for citizens and enterprises navigating multiple platforms.
Going forward, the priority is system-wide integration. Building a truly citizen-centric digital government requires interoperable data architectures, strong privacy-by-design frameworks for cross-agency collaboration, and scalable API-driven platforms that enable secure, real-time connections between national and local government systems. A connected digital state not only boosts efficiency but also strengthens public trust and paves the way for more adaptive, responsive services.
Theme 4: Cyber Resilience Is No Longer Optional – It’s Strategic
As digital transformation accelerates, the Philippines has become one of Southeast Asia’s most targeted countries for cyberattacks – particularly in sectors like financial services, critical infrastructure, and government. High-profile breaches at agencies such as PhilHealth, the Philippine Statistics Authority, and COMELEC have brought cybersecurity to the forefront of national priorities.
Regulatory steps such as the Cybercrime Prevention Act and the establishment of the Department of Information and Communications Technology (DICT) Cybersecurity Bureau have laid important groundwork. Yet, enterprise readiness remains uneven. Many organisations still rely on outdated defences, limited threat visibility, and ad hoc response plans that are outpaced by today’s threats. More importantly, many still look at cyber purely from a compliance angle.
As AI, IoT, and cloud-based platforms scale, so too does the attack surface. Cyber resilience now demands more than compliance – it requires dynamic risk management, skills development, intelligence sharing, and coordinated action across sectors. The shift from reactive to adaptive security is becoming a defining capability for both public and private institutions.
Theme 5: Financial Access at the Grassroots: The Digital Shift
One of the Philippines’ most notable digital transformation successes has been in fintech and digital financial services. Platforms like GCash, Maya, and the government’s Paleng-QR PH program have significantly expanded access to cashless payments, savings, and credit – especially among unbanked and underbanked communities.
By 2024, nearly 80% of Filipinos were using mobile financial apps – a striking milestone that reflects not only growing digital adoption but also evolving cultural and economic behaviours. From sari-sari stores to market vendors, digital wallets are reshaping everyday commerce and opening new avenues for financial empowerment at the grassroots level.
Still, digital inclusion is not automatic. Maintaining this momentum will require continued investment in digital literacy – particularly for older adults, rural communities, and lower-income groups – as well as stronger measures for cybersecurity, consumer protection, and interoperable ID and payment systems. Done right, digital finance can serve as the foundation for a more inclusive and resilient economy.
A Moment to Rethink What Progress Looks Like
As digital systems take root across the Philippines’ economy and institutions, the focus is shifting from speed to staying power. The next phase will depend on the country’s ability to translate broad adoption into long-term value – through strategies that are inclusive, resilient, and built to scale.
The Voice of Customer (VoC) market continues to evolve, often driven by technological advancements as well as M&As. Medallia, Qualtrics, and InMoment are the three major VoC players in the enterprise segment globally and locally across ANZ.
Until recently, InMoment was the smaller contender among the three, but that changed with their acquisition by PG Forsta in May 2025. The move marks a significant shift that will alter the competitive dynamics globally and in the region.
By combining PG Forsta’s strengths in market research, structured feedback, and regulated industries with InMoment’s expertise in AI, unstructured data analysis, and its strong presence in ANZ, the newly formed entity is poised to challenge the dominance of larger rivals.
The Key Players
Medallia
Medallia is a mature player in the VoC market, with a focus on larger, more complex and ideally global programs. With ANZ, and particularly New Zealand dominated by SMB’s, the vendor is not quite as prominent locally as they are at a global level.
Medallia underwent a major executive shakeup earlier this year, bringing in a wave of leadership talent from Qualtrics, and former Clarabridge. This leadership reset brings not only strategic focus but also a significant transfer of domain expertise and IP, positioning Medallia to compete more aggressively, especially against Qualtrics.
The changes include Mark Bishof as Chairman and CEO (formerly Chief Business Officer at Qualtrics and CEO of Clarabridge), Sid Banerjee as Chief Strategy Officer (Founder of Clarabridge), and several other senior leaders.
While the vendor has been relatively quiet in the ANZ market in recent years, with renewed leadership and an internal reset, Medallia re-focuses its efforts on local customer engagement across ANZ and aims to be more active and visible in the market. For ANZ enterprises, this could bring more choice, and a potentially stronger Medallia presence in upcoming VoC initiatives.
Qualtrics
Qualtrics, another major player in the VoC market, is known for its product strength, platform developments and AI capabilities. They are the most active in terms of platform development and shared several major AI announcements earlier this year, including agentic AI capabilities.
Qualtrics also formally introduced the term Experience Management (XM) as a discipline and new software category in 2017 with the launch of the Qualtrics XM Platform and continues to dominate the conversation on XM.
Qualtrics and InMoment have dominated the local ANZ market, in the SMB to enterprise sector. Qualtrics enjoyed winning customer deals that included market research and panel requirements, since InMoment lacked that capability in-house. And that’s where PG Forsta comes in to change the dynamic.
InMoment
InMoment is a VoC technology provider known for their Experience Improvement (XI) competencies. Their strengths include conversational intelligence, reputation management, and predictive analytics. InMoment has grown by acquisition, most notably the acquisition of MaritzCX, Lexalytics, and ReviewTracker, adding online reviews and deep analytics for unstructured data to their platform.
While smaller in size than their main competitors, InMoment has a strong local presence in ANZ and thrives on their strong customer relationships.
PG Forsta Acquires InMoment: A Strategic Move
The VoC landscape, especially in ANZ, is bound to shift significantly following PG Forsta’s acquisition of InMoment. While mergers and acquisitions are common in tech, this move signals a deliberate attempt by PG Forsta and InMoment to expand their market footprint and compete more aggressively with established VoC rivals.
While PG Forsta and InMoment were both established players in the VoC market, their merger is notable not just for its scale, but for its strategic intent: to combine complementary strengths in research, analytics, and AI innovation to provide a more robust, cross-industry VoC platform.
PG Forsta, formed through Press Ganey’s 2022 acquisition of Forsta (itself a merger of Confirmit and FocusVision), offers a Human Experience (HX) platform that integrates customer, employee, and market feedback, with a strong foundation in healthcare. PG Forsta brings deep expertise in structured feedback, large-scale analytics, and regulated industries such as healthcare. InMoment, meanwhile, offers advanced capabilities in AI, machine learning, and unstructured data analysis. By combining these distinct strengths, the merged entity creates a more versatile and comprehensive solution. PG Forsta enhances their AI and omnichannel offering, while InMoment gains access to a broader, compliance-focused client base and robust market research capabilities.
The new entity will serve clients globally with a team of more than 3,000 employees. Unlike its main competitors, InMoment maintains a dedicated presence in New Zealand, bringing deep local market expertise and strong relationships. InMoment’s established footprint in ANZ further enhances PG Forsta’s local presence, providing valuable on-the-ground support that is increasingly important to organizations.
Both companies cite cultural alignment as a key factor in building a stronger, united organization, a critical foundation for any successful acquisition.
AI: The Battlefront for the Future of CX
A crucial aspect of this acquisition is its emphasis on AI. VoC platforms are evolving beyond traditional feedback collection, with growing pressure to gather data from both solicited and unsolicited sources and deliver actionable insights and recommendations. As AI capabilities become more embedded in operations, platforms are increasingly judged by their ability to go beyond static dashboards, to unify data, analyse unstructured data, and generate richer insights and proactive recommendations.
InMoment, along with some competitors, has invested in leveraging contact centre data to extract insights from unsolicited and unstructured sources through conversation intelligence. While initially used for customer insights, this technology is now expanding to serve contact centre teams and broader, organisation-wide intelligence use cases, breaking out of departmental silos.
As the market continues to prioritise outcome-driven CX, AI will be a central differentiator among leading platforms, and InMoment brings those capabilities into the PG Forsta deal.
Looking Ahead
While it’s too early to call the long-term outcome, this acquisition marks a significant shift in the VoC landscape, particularly in ANZ.
With a bold goal “to be THE VoC company in the market”, the bar is set high to deliver. The success of this acquisition will depend on execution. Seamless integration across systems, cultures, and product lines won’t happen overnight. But if they get it right, this merger could reshape the competitive landscape, raising the stakes for Medallia, Qualtrics, and others.
For CX leaders across ANZ, this brings more choice, more innovation, and better capabilities to drive deeper customer insights and business impact.
We’re entering a new cycle of PC device growth, driven by the end-of-life of Windows 10 and natural enterprise upgrade cycles, brought into alignment by the COVID-era device boom. In Asia Pacific, PC shipments are expected to grow by 4-8% in 2025. The wide range reflects uncertainty linked to the US tariff regime, which could impact device pricing and availability in the region as manufacturers adjust to shifting demand globally.
To AI or Not to AI?
“AI PCs” (or Copilot PCs) are set to become a growing segment, but real AI benefits from these devices are still some way off. Microsoft’s announcement to embed Agentic AI capabilities into the OS marks the first step toward moving AI processing from the cloud to the desktop. However, for most organisations, these capabilities remain 12-24 months away.
This creates a strategic question: should organisations invest now in NPU-enabled devices that may not deliver immediate returns? Given typical refresh cycles of 3-5 years, it’s worth considering whether local AI processing could become relevant during that time. The safer bet is to invest in Copilot or AI PCs now, as the AI market is evolving rapidly; and the chances of NPUs becoming useful sooner rather than later are high.
Is the Desktop Being Left Behind?
PC market growth is concentrated in the laptop segment, drawing most manufacturers and chip providers to focus their innovation there. AI and Copilot PCs have yet to meaningfully enter the desktop space, where manufacturers remain largely focused on gaming.
This creates a gap for enterprises and SMEs. AI capabilities available on laptops may not be mirrored on desktops. Recent conversations with infrastructure and End-User Computing (EUC) managers suggest a shift in Asia Pacific toward laptops or cloud/ virtual desktop infrastructure (VDI) devices, including thin clients and desktops. If this trend continues, organisations will need to re-evaluate employee experience and ensure applications are designed to match the capabilities of each device type and user persona.
Fundamental EUC Drivers are Changing
As EUC and infrastructure teams revisit their strategies, several foundational drivers are undergoing significant change:
- Remote work is no longer a default. Once considered the norm for information workers, remote work is now being reconsidered. With some organisations mandating full-time office returns, device strategies must adapt to a more hybrid and unpredictable working model.
- Employee Experience is losing budget priority. During the pandemic, keeping employees productive and engaged was critical. But with rising cost pressures, growing automation through GenAI and Agentic AI, and changing labour dynamics, EX is no longer a top enterprise priority and budgets reflect that shift.
- Cloud-based EUC solutions are now enterprise-ready. Since 2022, cloud adoption in EUC has accelerated. Solutions like Microsoft 365, Google Workspace, AWS WorkSpaces, and VMware Horizon Cloud now offer mature capabilities. Unified Endpoint Management (UEM) is increasingly cloud-managed, enabling more scalable and agile IT operations.
- Zero-trust is moving security closer to the user. EUC security is evolving from perimeter-based models to identity-centric, continuous verification approaches. Investments in EDR, AI-driven threat analytics, MFA, biometric authentication, and proactive threat hunting are now standard, driven by the shift to zero trust.
- Device diversity is increasing. Standardised device fleets are giving way to more diverse options – touchscreen laptops, foldables, and a broader mix of PC brands. Enterprise offerings are expanding beyond traditional tiers to meet varied needs across user personas.
- Metrics are shifting from technical to outcome-based. Traditional KPIs like uptime and cost are giving way to metrics tied to business value – employee productivity, experience, collaboration, cyber resilience, and adaptability. EUC success is now measured in terms of outcomes, not just infrastructure performance.
Build a Modern and Future-Ready EUC Strategy
Organisations must reassess their plans to align with changing business needs, user expectations, and operational realities. Modern EUC strategies must account for a broad set of considerations.
Key factors to consider:
Strategic Business Alignment
- Business Outcomes. EUC strategies must align with core business goals such as boosting productivity, enhancing employee experience, improving customer outcomes, and driving competitive advantage. Consider how device choices enable new work models, such as remote/hybrid setups, gig workforce enablement, and cross-border collaboration.
- Digital Transformation Fit. Ensure EUC refresh cycles are integrated with broader digital transformation efforts – cloud migration, AI adoption, automation, and innovation. Devices should be future-ready, capable of supporting the AI and automation needs of 2026 and beyond. While some workloads may shift to the cloud, others like GenAI-powered video and image creation, may demand stronger local processing across the broader workforce, not just specialist teams.
Technology Considerations
- Device Selection. Move beyond the old “one device per persona” approach. Build a flexible device ecosystem that supports a range of employee types, from frontline workers to power users, while allowing for broader device choices based on real usage patterns. Evaluate form factors like desktops, laptops, tablets, smartphones, and thin/zero clients. With the rise of Desktop-as-a-Service (DaaS), thin clients are becoming more viable, offering cost savings and better security without compromising user experience.
- Flexibility of Choice. High-end features – lightweight design, long battery life, sleek aesthetics – are no longer limited to exec devices. I am currently writing this on a loan device – a Lenovo ThinkPad X1 Carbon Gen 13 Aura Edition – a freakishly light, powerful and slim device with LONG battery life – a device typically targeted towards the top tier of business leaders. But today, many of the features of this device run through the entire Lenovo laptop ecosystem – the “Aura” tag appears in many of the device SKUs and ranges. Hopefully the days of senior management getting the great looking devices and everyone else getting ugly bricks are behind us!
- Operating Systems and Compatibility. Ensure compatibility with current and planned business applications, cloud services, and collaboration tools. Consider ease of management and integration into existing IT ecosystems (such as Windows, macOS, Android, Chrome OS, Linux environments).
- Cloud Integration. Evaluate cloud-readiness and seamless integration capabilities with popular productivity suites (Microsoft 365, Google Workspace), hybrid cloud, and SaaS applications. Leverage VDI, DaaS or application virtualisation solutions to reduce hardware dependency and streamline maintenance.
User Experience
- Employee Productivity and Engagement. Even as EX slips down the priority list – and the budget – EUC leaders must still champion intuitive, user-friendly devices to boost productivity and reduce training and support demands. Seamless collaboration is critical across physical, remote, and hybrid teams. In-office collaboration is back in focus, but its value depends on digitising outcomes: laptops, smartphones, and tablets must enable AI-driven transcription, task assignment, and follow-up tracking from physical or hybrid meetings.
- Personalisation and Mobility. Where practical, offer device personalisation through flexible BYOD or CYOD models. Even in industries or geographies where this isn’t feasible, small touches like device colour or accessories, can improve engagement. UEM tools are essential to enforce security while enabling flexibility.
- Performance and Reliability. Choose devices that deliver the right performance for the task, especially for users handling video, design, or AI workloads. Prioritise long battery life and reliable connectivity, including Wi-Fi 6/7 and 5G where available. While 5G laptops are still rare across many Asia Pacific markets, that’s likely to change as networks expand and manufacturers respond to demand.
- Localised Strategy. Given the distributed nature of many organisations in the region, support and warranty strategies should reflect local realities. Tiered service agreements may provide better value than one-size-fits-all premium coverage that’s difficult to deliver consistently.
Security and Compliance
- Cybersecurity Posture. EUC teams typically work hand-in-hand with their cyber teams in the development of a secure EUC strategy and the deployment of the preferred devices. Cybersecurity teams will likely provide specific guidance and require compliance with local and regional regulations and laws. They will likely require that EUC teams prioritise integrated security capabilities (such as zero-trust architectures, endpoint detection and response – EDR solutions, biometrics, hardware-based security features like TPM). Consider deploying AI-driven endpoint threat detection and response tools for proactive threat mitigation.
- Data Privacy and Regulatory Compliance. Assess devices and management systems to ensure adherence to local regulatory frameworks (such as Australia’s Privacy Act, Singapore’s PDPA, or the Philippines’ Data Privacy Act). Deploy robust policies and platforms for data encryption, remote wiping, and identity and access management (IAM).
Management, Sustainability and Operational Efficiency
- Unified Endpoint Management (UEM). Centralise device management through UEM platforms to streamline provisioning, policy enforcement, patching, updates, and troubleshooting. Boost efficiency further with automation and self-service tools to lower IT overhead and support costs.
- Asset Lifecycle Management (ALM). While many organisations have made progress in optimising ALM – from procurement to retirement – gaps remain, especially in geographies outside core operations. Use device analytics to monitor health, utilisation, and performance, enabling smarter refresh cycles and reduced downtime.
- Sustainable IT and CSR Alignment. Choose vendors with strong sustainability credentials such as energy-efficient devices, ethical manufacturing, and robust recycling programs. Apply circular economy principles to extend device lifespan, reduce e-waste, and lower your carbon footprint. Align EUC strategies with broader CSR and ESG goals, using device refresh cycles as opportunities to advance sustainability targets and reinforce your organisation’s values.
Cost and Investment Planning
- Total Cost of Ownership (TCO). Evaluate TCO holistically, factoring in purchase price, operations, software licensing, security, support, warranties, and end-of-life costs. TCO frameworks are widely available, but if you need help tailoring one to your business, feel free to reach out. Balance CapEx and OpEx across different deployment models – owned vs leased, cloud-managed vs on-premises.
- Budgeting & Financial Modelling. Clearly define ROI and benefit realisation timelines to support internal approvals. Explore vendor financing or consumption-based models to enhance flexibility. These often align with sustainability goals, with many vendors offering equipment recycling and resale programs that reduce overall costs and support circular IT practices.
Vendor and Partner Selection
- Vendor Support & Regional Coverage. Select vendors with strong regional support across Asia Pacific to ensure consistent service delivery across diverse markets. Many organisations rely on distributors and resellers for their extended reach into remote geographies. Others prefer working directly with manufacturers. While this can reduce procurement costs, it may increase servicing complexity and response times. Assess vendors not just on cost, but on local presence, partner network strength, and critically, their supply chain resilience.
- Innovation & Ecosystem Alignment. Partner with vendors whose roadmaps align with future technology priorities – AI, IoT, edge computing – and who continue to invest in advancing EUC capabilities. Long-term innovation alignment is just as important as short-term performance.
Building a modern, future-ready EUC strategy isn’t just about devices – it’s about aligning people, technology, security, sustainability, and business outcomes in a way that’s cost-effective and forward-looking. But we know investment planning can be tricky. At Ecosystm, we’ve helped organisations build ROI models that make a strong case for EUC investments. If you’d like guidance, feel free to reach out – we’re here to help you get it right.
Digital transformation in Malaysia has entered a new phase: less about bold roadmaps, more about fixing what’s broken. With the digital economy expected to reach 25.5% of GDP by 2025, the challenge now is turning strategy into results. Leaders aren’t chasing the next big thing – they are focused on integration bottlenecks, talent gaps, and showing real ROI.
The technology isn’t the problem; it’s making it stick. AI, cloud, and data platforms only deliver value when backed by the right systems, skills, and governance. From aviation to agriculture, organisations are being forced to rethink how they work, how they hire, and how they measure success.
Through a series of interviews and roundtable conversations with Malaysian business and tech leaders, Ecosystm heard firsthand what’s driving – and holding back – digital progress. These weren’t polished success stories, but honest reflections on what it really takes to move forward. The five themes below highlight where Malaysia’s transformation is gaining ground, where it’s getting stuck, and what’s needed to close the gap between ambition and execution.
Theme 1. Ecosystem Collaboration Is Driving Malaysia’s Digital Momentum
Malaysia’s digital transformation is being shaped not by individual breakthroughs, but by coordinated momentum across government, industry, and technology providers. This ecosystem-first approach is turning national ambitions into tangible outcomes. Flagship initiatives like JENDELA, Digital Nasional Berhad’s 5G rollout, and cross-agency digital infrastructure programs are laying the groundwork for smarter public services, connected industries, and inclusive digital access.
The Ministry of Digital (MyDigital) is taking a central role in aligning AI, 5G, and cybersecurity efforts under one roof – helping speed up policy execution and improve coordination between regulators and the private sector. Major tech players like Microsoft, Google, Nvidia, and AWS are responding with expanded investments in local cloud regions, chip design collaborations, and foundational AI services designed for Malaysian deployment environments.
What’s emerging is not just a policy roadmap, but a digitally integrated economy – where infrastructure rollouts, vendor innovation, and government leadership are advancing together. As Malaysia targets to create 500,000 new jobs and reach over 80% 5G population coverage, the strength of these partnerships will be critical in ensuring national strategies translate into sector-level execution.
Theme 2. Laying the Groundwork for Malaysia’s AI Economy
With over 90% of online content projected to be AI-generated by 2025, Malaysia faces growing urgency to ensure that the systems powering AI development are secure, interoperable, and locally relevant. This is about more than data sovereignty – it’s about building the infrastructure to support scalable, trusted, and sector-wide AI adoption.
The National AI Office (NAIO), under MyDigital, is leading efforts to align infrastructure with national priorities across healthcare, manufacturing, agriculture, and public services. Initiatives include supporting domestic data centres, enabling cross-sector cloud access, and establishing governance frameworks for responsible AI use.
The priority is no longer just adopting AI tools, but enabling Malaysia to develop, fine-tune, and deploy them on infrastructure that reflects local needs. Control over this ecosystem will shape how AI delivers value — from national security to inclusive fintech. To support this, Budget 2025 allocates USD 11.7 million for AI education and USD 4.2 million for the National AI Framework. Programs like AI Sandboxes, alongside emerging public-private partnerships, are helping bridge gaps in talent and tooling.
Together, these efforts are laying the foundation for an AI economy that is scalable, trusted, and anchored in Malaysia’s long-term digital ambitions.
Theme 3. Malaysia’s Enterprise AI Landscape: Still in Its Early Stages
Malaysian enterprises are actively exploring AI to drive competitiveness, but widespread, production-grade adoption remains limited. While leading banks are leveraging AI for fraud detection and digital onboarding, and manufacturers are exploring predictive maintenance and automation, many companies face barriers in scaling beyond pilots. Core challenges include siloed data systems, unclear return on investment, and limited in-house AI talent. Even when tools are available, businesses often lack the capacity to integrate them meaningfully into workflows.
Cost is another concern. AI implementation, especially when reliant on third-party platforms or cloud infrastructure, can be prohibitively expensive for mid-sized firms. Without a clear link to bottom-line improvement, AI investments are frequently deprioritised. There’s also lingering uncertainty around governance and compliance, which can further slow enterprise momentum.
For AI to scale across Malaysia, enterprise strategies must align with operational realities – offering cost-effective, localised solutions that deliver measurable value and inspire long-term confidence in digital transformation.
Theme 4. Building on Regulation to Achieve True Cyber Resilience
Malaysia is ramping up its cybersecurity strategy with a stronger regulatory backbone and ecosystem-wide initiatives. The upcoming Cyber Security Bill introduces mandatory breach notifications, sector-specific controls, and licensing for Managed Security Operations Centres (SOCs). Agencies like NACSA are driving protections across 11 critical sectors, while the Cybersecurity Centre of Excellence (CCoE) in Cyberjaya is scaling SOC analyst training in partnership with international players. These efforts are complemented by Malaysia’s leadership role in IMPACT, the UN’s cybersecurity hub, and participation in ASEAN-wide resilience initiatives.
Despite this progress, enterprise readiness remains inconsistent. Malaysian businesses faced an average of 74,000 cyberattacks per day in 2023, yet many still rely on outdated playbooks and fragmented systems. Cybersecurity is often viewed through a compliance lens – meeting audit requirements rather than preparing for real-time recovery. Investments are still skewed toward perimeter defences, while response protocols, cross-team coordination, and real-time observability are underdeveloped.
True resilience requires a shift in mindset: cybersecurity must be treated as a board-level business function. It must be operationalised through simulations, automated response frameworks, and enterprise-wide drills. In a threat landscape that is both persistent and sophisticated, Malaysia must evolve from regulatory compliance to strategic continuity – where recovery speed, not just prevention, becomes the defining metric of cyber maturity.
Theme 5. Malaysia’s Digital Transformation Is Being Led by Industry, Not Policy
While national strategies like the New Industrial Master Plan 2030 set out broad ambitions, real AI-led transformation in Malaysia is taking shape from the ground up, driven by industrial leaders tackling operational challenges with data. Manufacturing and Energy firms, which together contribute over 30% of Malaysia’s GDP, are ahead of the curve. Leaders are using AI for predictive maintenance, digital twins, logistics optimisation, and emissions tracking, often outpacing regulatory requirements.
In some cases, cloud platforms now process millions of machine data points daily to reduce downtime and lower costs at scale. What sets these firms apart is their focus on well-integrated, usable data. Rather than running isolated pilots, they’re building interoperable systems with shared telemetry, open APIs, and embedded analytics, with a focus on enabling AI that adapts in real time.
Malaysia’s next leap in transformation will hinge on whether the data discipline seen in leading industries can be replicated across less-digitised sectors.
If we consider Agriculture – still contributing 7-8% of GDP and employing nearly 10% of the workforce – we find that it remains digitally fragmented. While drones and IoT devices are collecting NDVI and soil data, much of it remains siloed or underutilised. Without clean data pipelines or national integration standards, AI struggles to move from demonstration to deployment.
A Moment to Redefine Ambition
Malaysia stands at a point where digital ambition must evolve into digital maturity. This means asking harder questions – not about what can be built, but what should be prioritised, sustained, and scaled. As capabilities deepen, the challenge is no longer innovation for its own sake, but ensuring technology serves long-term national resilience, equity, and competitiveness. The decisions made now will shape not just digital progress – but the kind of economy and society Malaysia becomes in the decade ahead.
The energy at ServiceNow’s Knowledge25 matched the company’s ambitious direction! ServiceNow is repositioning itself as more than just an IT service platform – aiming to be the orchestration layer for the modern enterprise. Over the past two days, I’ve seen a clear focus on platform extensibility, AI-driven automation, and a push into new functional territories like CRM and ERP.
Here are my key takeaways from Knowledge25.
Click here to download “ServiceNow Knowledge25: Big Moves, Bold Bets, and What’s Next” as a PDF.
AI Everywhere: Agents and Control Towers
ServiceNow goes all in on AI Agents – and makes it easy to adopt.
Like Google, Salesforce, and AWS, ServiceNow is betting big on agents. But with a key advantage: it’s already the enterprise layer where workflows live. Its AI Agents don’t just automate tasks; they amplify what’s already working, layer in intelligence, and collaborate with other agents across systems. ServiceNow becomes the orchestration hub, just as it already is for processes and change.
ServiceNow’s AI Control Tower is a critical accelerator for AI at scale. It enforces policies, ensures compliance with internal and regulatory standards, and provides the guardrails needed to deploy AI responsibly and confidently.
The bigger move? Removing friction. Most employees don’t know what agents can do – so they don’t ask. ServiceNow solves this with hundreds of prebuilt agents across finance, risk, IT, service, CRM, and more. No guesswork. Just plug and go.
Sitting Above Silos: ServiceNow’s Architectural Advantage
ServiceNow is finally highlighting its architectural edge.
It’s one of the few platforms that can sit above all systems of record – pulling in data as needed, delivering workflows to employees and customers, and pushing updates back into core systems. While most Asia Pacific customers use ServiceNow mainly for IT help desk and service requests, its potential extends much further. Virtually anything done in ERP, CRM, SCM, or HRM systems can be delivered through ServiceNow, often with far greater agility. Workflow changes that once took weeks or months can now happen instantly.
ServiceNow is leaning into this capability more forcefully than ever, positioning itself as the platform that can finally keep pace with constant business change.
Stepping into the Ring: ServiceNow’s CRM & ERP Ambitions
ServiceNow is expanding into CRM and ERP workflows – putting itself in competition with some of the industry’s biggest players.
ServiceNow is boldly targeting CRM as a growth area, despite Salesforce’s dominance, by addressing gaps traditional CRMs miss. Customer workflows extend far beyond sales and service, spanning fulfillment, delivery, supply chain, and compliance. A simple quoting process, for instance, often pulls data from multiple systems. ServiceNow covers the full scope, positioning itself as the platform that orchestrates end-to-end customer workflows from a fundamentally different angle.
Its Core Business Suite – an AI-powered solution that transforms core processes like HR, procurement, finance, and legal – also challenges traditional ERP providers, With AI-driven automation for tasks like case management, it simplifies workflows and streamlines operations across departments.
Closing the Skills Gap: ServiceNow University
To support its vision, ServiceNow is investing heavily in education.
The refreshed ServiceNow University aims to certify 3 million professionals by 2030. This is critical to build both demand (business leaders who ask for ServiceNow) and supply (professionals who can implement and extend the platform).
But the skills shortage is a now problem, not a 2030 problem. ServiceNow must go beyond online learning and push harder on in-person classes, tutorials, and train-the-trainer programs across Asia Pacific. Major cloud providers like AWS broke through when large enterprises started training their entire workforces – not just on usage, but on development. ServiceNow needs similar scale and commitment to hit the mainstream.
Asia Pacific: ServiceNow’s Next Growth Frontier
ServiceNow’s potential is massive – and its opportunities even bigger.
In Asia Pacific, many implementations are partner-led, but most partners are currently focused on the platform’s legacy IT capabilities. To unlock growth, ServiceNow needs to empower its partners to engage beyond IT and connect with business leaders.
Despite broader challenges like shrinking tech budgets, fragmented decision-making, and decentralised tech ownership, ServiceNow has a clear path forward. By upskilling partners, simplifying its narrative, and adapting quickly, it’s well-positioned to continue its growth and surpass the hurdles many other software vendors face.
Advanced technology and the growing interconnectedness of devices are no longer futuristic concepts in health and life sciences – they’re driving a powerful transformation. Technology, combined with societal demands, is reshaping drug discovery, clinical trials, patient care, and even our understanding of the human body.
The potential to create more efficient, personalised, and effective healthcare solutions has never been greater.
Click here to download “Future Forward: Reimagining Health & Life Sciences” as a PDF.
Modernising HR for Enhanced Efficiency & Employee Experience
The National Healthcare Group (NHG), a leading public healthcare provider in Singapore, recognised the need to modernise their HR system to better support 20,000+ healthcare professionals and improve patient services.
The iConnect@NHG initiative was launched to centralise HR functions, providing mobile access and self-service capabilities, and streamlining workflows across NHG’s integrated network of hospitals, polyclinics, and specialty centres.
The solution streamlined HR processes, giving employees easy access to essential data, career tools, and claims. The cloud-based platform improved data accuracy, reduced admin work, and integrated analytics for better decision-making and engagement. With 95% adoption, productivity and job satisfaction surged, enabling staff to focus on care delivery.
Automating Workflows for Better Patient Outcomes
Gold Coast Health handles a high volume of patient interactions across a wide range of medical services. The challenge was to streamline operations and reduce administrative burdens to improve patient care.
The solution involved automating the patient intake process by replacing paper forms with electronic versions, freeing up significant staff time.
A new clinical imaging solution also automates the uploading of wound images and descriptions into patient records, further saving time. Additionally, Gold Coast Health implemented a Discharge to Reassess system to automate follow-ups for long-term outpatient care. They are also exploring AI to simplify tasks and improve access to information, allowing clinical teams to focus more on patient care.
Streamlining Operations, Improving Care
IHH Healthcare, a global provider with over 80 hospitals across 10 countries, faced a fragmented IT landscape that hindered data management and patient care.
To resolve this, IHH migrated their core application workloads, including EMRs, to a next-gen cloud platform, unifying data across their network and enhancing analytics.
Additionally, they adopted an on-prem cloud solution to comply with local data residency requirements. This transformation reduced report generation time from days to hours, boosting operational efficiency and improving patient and clinician experiences. By leveraging advanced cloud technologies, IHH is strengthening their commitment to delivering world-class healthcare.
Creating Seamless & Compassionate Patient Journeys
The Narayana Health group in India is committed to providing accessible, high-quality care. However, they faced challenges with fragmented patient data, which hindered personalised care and efficient interactions.
To address this, Narayana Health centralised patient data, providing agents with a 360-degree view to offer more informed and compassionate service.
By automating tasks like call routing and form-filling, the organisation reduced average handling times and increased appointment conversions. Additionally, automated communication tools delivered timely, sensitive updates, strengthening patient relationships. The initiative has improved operational efficiency and deepened the organisation’s patient-centric focus.
Reimagining Location Services for Digital Healthcare
Halodoc, a leading digital health platform in Indonesia, connects millions of users with healthcare professionals and pharmacies.
To improve key services like home lab appointments and medicine delivery, Halodoc sought a more cost-effective and secure location service.
The transition resulted in an 88% reduction in costs for geocoding and places functionalities while enhancing data security. With better performance monitoring, Halodoc processed millions of geocoding and place requests with no major issues. This migration not only optimised costs but also resolved long-standing technical challenges, positioning Halodoc for future innovation, including machine learning and AI. The move strengthened their data security and provided a solid foundation for continued growth and high-quality healthcare delivery across Indonesia.
Driving Efficiency & Accessibility through Integrated Systems
Lupin, a global pharma leader, aimed to boost patient care, streamline operations, and enhance accessibility. By integrating systems and centralising data, Lupin wanted seamless interactions between patients, doctors, and the salesforce.
The company implemented a scalable infrastructure optimised for critical business applications, backed by high-performance server and storage technologies.
This integration improved data-driven decision-making, leading to optimised operations, reduced costs, and improved medicine quality and affordability. The robust infrastructure also ensured near-zero downtime, enhancing reliability and efficiency. Through this transformation, Lupin reinforced its commitment to providing patient-centred, affordable healthcare with faster, more efficient outcomes.
Leveraging AI for Cloud Security
Mitsubishi Tanabe Pharma’s “VISION 30” seeks to deliver personalised healthcare by 2030, focusing on precision medicine and digital solutions. The company is investing in advanced digital technologies and secure data infrastructure to achieve these goals.
To secure their expanding cloud platform, the company adopted a zero-trust model and enhanced identity management.
A security assessment identified gaps in cloud configuration, prompting tailored security improvements. GenAI was introduced to translate and summarise security alerts, reducing processing time from 10 minutes to just one minute, improving efficiency and security awareness across the team. The company is actively exploring further AI-driven solutions to strengthen security and drive their digital transformation, advancing the vision for personalised healthcare.
AI has become a battleground for geopolitical competition, national resilience, and societal transformation. The stakes are no longer theoretical, and the window for action is closing fast.
In March, the U.S. escalated its efforts to shape the global technology landscape by expanding export controls on advanced AI and semiconductor technologies. Over 80 entities – more than 50 in China – were added to the export blacklist, aiming to regulate access to critical technologies. The move seeks to limit the development of high-performance computing, quantum technologies, and AI in certain regions, citing national security concerns.
As these export controls tighten, reports have surfaced of restricted chips entering China through unofficial channels, including e-commerce platforms. U.S. authorities are working to close these gaps by sanctioning new entities attempting to circumvent the restrictions. The Department of Commerce’s Bureau of Industry and Security (BIS) is also pushing for stricter Know Your Customer (KYC) regulations for cloud service providers to limit unauthorised access to GPU resources across the Asia Pacific region.
Geopolitics & the Pursuit of AI Dominance
Bipartisan consensus has emerged in Washington around the idea that leading in artificial general intelligence (AGI) is a national security imperative. If AI is destined to shape the future balance of power, the U.S. government believes it cannot afford to fall behind. This mindset has accelerated an arms-race dynamic reminiscent of the Thucydides Trap, where the fear of being overtaken compels both sides to push ahead, even if alignment and safety mechanisms are not yet in place.
China has built extensive domestic surveillance infrastructure and has access to large volumes of data that would be difficult to collect under the regulatory frameworks of many other countries. Meanwhile, major U.S. social media platforms can refine their AI models using behavioural data from a broad global user base. AI is poised to enhance governments’ ability to monitor compliance and enforce laws that were written before the digital age – laws that previously assumed enforcement would be limited by practical constraints. This raises important questions about how civil liberties may evolve when technological limitations are no longer a barrier to enforcement.
The Digital Battlefield
Cybersecurity Threat. AI is both a shield and a sword in cybersecurity. We are entering an era of algorithm-versus-algorithm warfare, where AI’s speed and adaptability will dictate who stays secure and who gets compromised. Nations are prioritising AI for cyber defence to stay ahead of state actors using AI for attacks. For example, the DARPA AI Cyber Challenge is funding tools that use AI to identify and patch vulnerabilities in real-time – essential for defending against state-sponsored threats.
Yet, a key vulnerability exists within AI labs themselves. Many of these organisations, though responsible for cutting-edge models, operate more like startups than defence institutions. This results in informal knowledge sharing, inconsistent security standards, and minimal government oversight. Despite their strategic importance, these labs lack the same protections and regulations as traditional military research facilities.
High-Risk Domains and the Proliferation of Harm. AI’s impact on high-risk domains like biotechnology and autonomous systems is raising alarms. Advanced AI tools could lower the barriers for small groups or even individuals to misuse biological data. As Anthropic CEO Dario Amodei warns, “AI will vastly increase the number of people who can cause catastrophic harm.”
This urgency for oversight mirrors past technological revolutions. The rise of nuclear technology prompted global treaties and safety protocols, and the expansion of railroads drove innovations like block signalling and standardised gauges. With AI’s rapid progression, similar safety measures must be adopted quickly.
Meanwhile, AI-driven autonomous systems are growing in military applications. Drones equipped with AI for real-time navigation and target identification are increasingly deployed in conflict zones, especially where traditional systems like GPS are compromised. While these technologies promise faster, more precise operations, they also raise critical ethical questions about decision-making, accountability, and latency.
The 2024 National Security Memorandum on AI laid down initial guidelines for responsible AI use in defence. However, significant challenges remain around enforcement, transparency, and international cooperation.
AI for Intelligence and Satellite Analysis. AI also holds significant potential for national intelligence. Governments collect massive volumes of satellite imagery daily – far more than human analysts can process alone. AI models trained on geospatial data can greatly enhance the ability to detect movement, monitor infrastructure, and improve border security. Companies like ICEYE and Satellogic are advancing their computer vision capabilities to increase image processing efficiency and scale. As AI systems improve at identifying patterns and anomalies, each satellite image becomes increasingly valuable. This could drive a new era of digital intelligence, where AI capabilities become as critical as the satellites themselves.
Policy, Power, and AI Sovereignty
Around the world, governments are waking up to the importance of AI sovereignty – ensuring that critical capabilities, infrastructure, and expertise remain within national borders. In Europe, France has backed Mistral AI as a homegrown alternative to US tech giants, part of a wider ambition to reduce dependency and assert digital independence. In China, DeepSeek has gained attention for developing competitive LLMs using relatively modest compute resources, highlighting the country’s determination to lead without relying on foreign technologies.
These moves reflect a growing recognition that in the AI age, sovereignty doesn’t just mean political control – it also means control over compute, data, and talent.
In the US, the public sector is working to balance oversight with fostering innovation. Unlike the internet, the space program, or the Manhattan Project, the AI revolution was primarily initiated by the private sector, with limited state involvement. This has left the public sector in a reactive position, struggling to keep up. Government processes are inherently slow, with legislation, interagency reviews, and procurement cycles often lagging rapid technological developments. While major AI breakthroughs can happen within months, regulatory responses may take years.
To address this gap, efforts have been made to establish institutions like the AI Safety Institute and requiring labs to share their internal safety evaluations. However, since then, there has been a movement to reduce the regulatory burden on the AI sector, emphasising the importance of supporting innovation over excessive caution.
A key challenge is the need to build both policy frameworks and physical infrastructure in tandem. Advanced AI models require significant computational resources, and by extension, large amounts of energy. As countries like the US and China compete to be at the forefront of AI innovation, ensuring a reliable energy supply for AI infrastructure becomes crucial.
If data centres cannot scale quickly or if clean energy becomes too expensive, there is a risk that AI infrastructure could migrate to countries with fewer regulations and lower energy costs. Some nations are already offering incentives to attract these capabilities, raising concerns about the long-term security of critical systems. Governments will need to carefully balance sovereignty over AI infrastructure with the development of sufficient domestic electricity generation capacity, all while meeting sustainability goals. Without strong partnerships and more flexible policy mechanisms, countries may risk ceding both innovation and governance to private actors.
What Lies Ahead
AI is no longer an emerging trend – it is a cornerstone of national power. It will shape not only who leads in innovation but also who sets the rules of global engagement: in cyber conflict, intelligence gathering, economic dominance, and military deterrence. The challenge governments face is twofold. First, to maintain strategic advantage, they must ensure that AI development – across private labs, defence systems, and public infrastructure – remains both competitive and secure. Second, they must achieve this while safeguarding democratic values and civil liberties, which are often the first to erode under unchecked surveillance and automation.
This isn’t just about faster processors or smarter algorithms. It’s about determining who defines the future – how decisions are made, who has oversight, and what values are embedded in the systems that will govern our lives.
The education sector is evolving rapidly, driven by technological innovation and shifting societal needs. This transformation extends beyond digitisation, requiring a fundamental rethink of how students and employees engage. AI-driven personalisation, immersive virtual environments, and data analytics are reshaping curricula, teaching strategies, and operational efficiency.
Here are recent examples of transformation across the Asia Pacific.
Click here to download “Future Forward: Reimagining Education” as a PDF.
Streamlining Service Delivery
Griffith University struggled with fragmented systems and siloed information, leading to inconsistent service and inefficiencies. Managing support for over 45,000 students became unsustainable, demanding a streamlined solution.
By adopting an enterprise service management platform, Griffith consolidated multiple portals into a single system, automating ticketing, request management, and AI-driven self-service.
Starting with library services, the transformation expanded across IT, HR, legal, and other functions, improving accessibility and collaboration. The impact was immediate: self-service surged by 87%, first-contact resolution jumped by 43%, and incident resolution time dropped by 25%. Call volume fell 31% and email inquiries 46%. Now scaling the platform university-wide, Griffith is streamlining service for students and staff.
AI for Recruitment & Content
The Indian Institute of Hotel Management (IIHM) sought to improve recruitment efficiency and enhance educational content creation. Manual hiring processes were slow and inconsistent, while developing high-quality learning materials was resource-intensive.
IIHM implemented an AI-driven platform to automate candidate assessments and generate accurate, engaging educational content.
This transformation cut interview times by half, improved hiring precision to 90%, and boosted student job placements by up to 30%. AI-generated materials reached 95% accuracy, creating a more effective learning experience. With stronger recruitment and enriched education, IIHM continues to reinforce its leadership in hospitality training.
AI-Accelerated Research
La Trobe University sought to harness GenAI to streamline research operations and accelerate market entry. Researchers faced challenges in accessing university-approved knowledge efficiently, while limited development capabilities slowed the commercialisation of research findings.
By implementing a retrieval-augmented generation (RAG) system, La Trobe enabled rapid, AI-powered access to research data, initially tested on autism studies.
Simultaneously, the university co-developed an AI-driven application to transform research into market-ready solutions faster. AI-driven development reduced time from months to weeks, with core components built in under a week. By leveraging in-house AI tools, La Trobe achieved an 8.7x cost reduction compared to outsourcing. This initiative positioned the university as a leader in AI-driven innovation, bridging the gap between academia and industry.
AI-Driven Personalisation
BINUS University aimed to future-proof its operations and student learning experiences. With GenAI reshaping education, the university sought to integrate AI into administration and teaching to boost efficiency and deliver adaptive, personalised learning.
BINUS has integrated AI across key areas, driving efficiency and personalisation.
AI-powered student intake predictions have reached 90% accuracy, optimising resource allocation across 14 campuses. GenAI automates Diploma Supplement Document (DPI) creation, reducing manual effort and improving accuracy. AI enhances the library system with personalised book recommendations and powers the AI Tutor for faster, tailored academic feedback. AI-driven language learning platforms further boost student engagement.
Unified Digital Workflows
Western Sydney University (WSU) faced inefficiencies from over 32 shared email addresses and paper-based forms, causing delays, poor inquiry tracking, and complicated administration – hindering timely, effective support.
WSU launched WesternNow to replace outdated systems with a unified digital platform, streamlining service requests, enhancing case tracking, cutting manual processes, and improving the user experience for students and staff.
This made WSU’s service delivery more responsive and efficient. The platform drastically improved efficiency, cutting request logging time from over 4 minutes to seconds. Staff tracked and resolved cases seamlessly without sifting through emails. Workflow digitisation eliminated most paper forms, saving time and resources, while consolidating forms into services reduced their number by 40%.
The tech industry is experiencing a strategic convergence of AI, data management, and cybersecurity, driving a surge in major M&A activity. As enterprises tackle digital transformation, these three pillars are at the forefront, accelerating the race to acquire and integrate critical technologies.
Here are this year’s key consolidation moves, showcasing how leading tech companies are positioning themselves to capitalise on the rising demand for AI-driven solutions, robust data infrastructure, and enhanced cybersecurity.
AI Convergence: Architecting the Intelligent Enterprise
From customer service to supply chain management, AI is being deployed across the entire enterprise value chain. This widespread demand for AI solutions is creating a dynamic M&A market, with tech companies acquiring specialised AI capabilities.
IBM’s AI Power Play
IBM’s acquisitions of HashiCorp and DataStax mark a decisive step in its push to lead enterprise AI and hybrid cloud. The USD 6.4B HashiCorp deal that got finalised this year, brings Terraform, a top-tier infrastructure-as-code tool that streamlines multi-cloud deployments – key to integrating IBM’s Red Hat OpenShift and Watsonx AI. Embedding Terraform enhances automation, making hybrid cloud infrastructure more efficient and AI-ready.
The DataStax acquisition strengthens IBM’s AI data strategy. With AstraDB and Apache Cassandra, IBM gains scalable NoSQL solutions for AI workloads, while Langflow simplifies AI app development. Together, these moves position IBM as an end-to-end AI and cloud powerhouse, offering enterprises seamless automation, data management, and AI deployment at scale.
MongoDB’s RAG Focus
MongoDB’s USD 220M acquisition of Voyage AI signals a strategic push toward enhancing AI reliability. At the core of this move is retrieval-augmented generation (RAG), a technology that curbs AI hallucinations by grounding responses in accurate, relevant data.
By integrating Voyage AI into its Atlas cloud database, MongoDB is making AI applications more trustworthy and reducing the complexity of RAG implementations. Enterprises can now build AI-driven solutions directly within their database, streamlining development while improving accuracy. This move consolidates MongoDB’s role as a key player in enterprise AI, offering both scalable data management and built-in AI reliability.
Google’s 1B Bet on Anthropic
Google’s continued investment in Anthropic reinforces its commitment to foundation model innovation and the evolving GenAI landscape. More than a financial move, this signals Google’s intent to shape the future of AI by backing one of the field’s most promising players.
This investment aligns with a growing trend among cloud giants securing stakes in foundation model developers to drive AI advancements. By deepening ties with Anthropic, Google not only gains access to cutting-edge AI research but also strengthens its position in developing safe, scalable, and enterprise-ready AI. This solidifies Google’s long-term AI strategy, ensuring its leadership in GenAI while seamlessly integrating these capabilities into its cloud ecosystem.
ServiceNow’s AI Automation Expansion
ServiceNow’s USD 2.9B acquisition of Moveworks completed this year, marking a decisive push into AI-driven service desk automation. This goes beyond feature expansion – it redefines enterprise support operations by embedding intelligent automation into workflows, reducing resolution times, and enhancing employee productivity.
The acquisition reflects a growing shift: AI-powered service management is no longer optional but essential. Moveworks’ AI-driven capabilities – natural language understanding, machine learning, and automated issue resolution – will enable ServiceNow to deliver a smarter, more proactive support experience. Additionally, gaining Moveworks’ customer base strengthens ServiceNow’s market reach.
Data Acquisition Surge: Fuelling Digital Transformation
Data has transcended its role as a byproduct of operations, becoming the lifeblood that fuels digital transformation. This fundamental shift has triggered a surge in strategic acquisitions focused on enhancing data management and storage capabilities.
Lenovo Scaling Enterprise Storage
Lenovo’s USD 2B acquisition of Infinidat strengthens its position in enterprise storage as data demands surge. Infinidat’s AI-driven InfiniBox delivers high-performance, low-latency storage for AI, analytics, and HPC, while InfiniGuard ensures advanced data protection.
By integrating these technologies, Lenovo expands its hybrid cloud offerings, challenging Dell and NetApp while reinforcing its vision as a full-stack data infrastructure provider.
Databricks Streamlining Data Warehouse Migrations
Databricks’ USD 15B acquisition of BladeBridge accelerates data warehouse migrations with AI-driven automation, reducing manual effort and errors in migrating legacy platforms like Snowflake and Teradata. BladeBridge’s technology enhances Databricks’ SQL platform, simplifying the transition to modern data ecosystems.
This strengthens Databricks’ Data Intelligence Platform, boosting its appeal by enabling faster, more efficient enterprise data consolidation and supporting rapid adoption of data-driven initiatives.
Cybersecurity Consolidation: Fortifying the Digital Fortress
The escalating sophistication of cyber threats has transformed cybersecurity from a reactive measure to a strategic imperative. This has fuelled a surge in M&A aimed at building comprehensive and integrated security solutions.
Turn/River Capital’s Security Acquisition
Turn/River Capital’s USD 4.4 billion acquisition of SolarWinds underscores the enduring demand for robust IT service management and security software. This acquisition is a testament to the essential role SolarWinds plays in enterprise IT infrastructure, even in the face of past security breaches.
This is a bold investment, in the face of prior vulnerability and highlights a fundamental truth: the need for reliable security solutions outweighs even the most public of past failings. Investors are willing to make long term bets on companies that provide core security services.
Sophos Expanding Managed Detection & Response Capabilities
Sophos completed the acquisition of Secureworks for USD 859M significantly strengthens its managed detection and response (MDR) capabilities, positioning Sophos as a major player in the MDR market. This consolidation reflects the growing demand for comprehensive cybersecurity solutions that offer proactive threat detection and rapid incident response.
By integrating Secureworks’ XDR products, Sophos enhances its ability to provide end-to-end protection for its customers, addressing the evolving threat landscape with advanced security technologies.
Cisco’s Security Portfolio Expansion
Cisco completed the USD 28B acquisition of SnapAttack further expanding its security business, building upon its previous acquisition of Splunk. This move signifies Cisco’s commitment to creating a comprehensive security portfolio that can address the diverse needs of its enterprise customers.
By integrating SnapAttack’s threat detection capabilities, Cisco strengthens its ability to provide proactive threat intelligence and incident response, solidifying its position as a leading provider of security solutions.
Google’s Cloud Security Reinforcement
Google’s strategic acquisition of Wiz, a leading cloud security company, for USD 32B demonstrates its commitment to securing cloud-native environments. Wiz’s expertise in proactive threat detection and remediation will significantly enhance Google Cloud’s security offerings. This move is particularly crucial as organisations increasingly migrate their workloads to the cloud.
By integrating Wiz’s capabilities, Google aims to provide its customers with a robust security framework that can protect their cloud-based assets from sophisticated cyber threats. This acquisition positions Google as a stronger competitor in the cloud security market, reinforcing its commitment to enterprise-grade cybersecurity.
The Way Ahead
The M&A trends of 2025 underscore the critical role of AI, data, and security in shaping the technology landscape. Companies that prioritise these core areas will be best positioned for long-term success. Strategic acquisitions, when executed with foresight and agility, will serve as essential catalysts for navigating the complexities of the evolving digital world.