The technology market in Thailand continues to evolve at an unprecedented pace, creating both exciting opportunities and significant challenges for tech leaders in the country. Real-world AI applications and cloud expansion define the future of IT strategies in 2024, as organisations push digital transformation forward. Understanding these trends is crucial for navigating today’s market complexities and achieving exponential growth. Here are the opportunities in the Thailand technology landscape and insights on how to address them effectively.
Tech Modernisation: Breaking Free from Vendor Lock-in
Data centre consolidation and infrastructure modernisation remain top priorities for organisations in Thailand. These processes catalyse the ‘de-requisitioning’ removing outdated or unnecessary technology from an organisation’s infrastructure. But vendor lock-ins pose challenges for organisations, mainly stifling organisational flexibility, hindering innovation, and exposing them to business disruption risks.
44% of organisations in Thailand are focused on consolidating data centres and modernising tech stacks to mitigate vendor lock-ins and enhance operational efficiency.
Modernising infrastructure reduces reliance on single vendors and improves scalability and resilience. Despite the widespread adoption of hybrid and multi-cloud environments, effectively managing these systems remains challenging and requires additional strategic investments.
Over-reliance on a single provider can expose organisations to new risks. This is why CIOs in Thailand are taking decisive steps to combat technology vendor lock-in. They are centralising and modernising their data centres and enhancing cross-platform tools to reduce vendor dependency.
This approach is key to their long-term growth and innovation, allowing them to remain at the forefront of the digital transformation landscape, ready to leverage emerging technologies and adapt to expanding business challenges.
The Hybrid Cloud Labyrinth: Managing Complexity for Success
Nearly 60% of Thailand organisations have embraced hybrid and multi-cloud environments, but the challenges of managing the complexity are often underestimated.
Hybrid strategies offer numerous benefits, such as increased flexibility, optimised performance, and enhanced disaster recovery capabilities. However, managing different cloud providers, each with its unique interface and operational management tools can be challenging.
The challenges of managing a hybrid IT environment are indeed multifaceted. Integration requires harmonising various technology services to work together seamlessly, which can be complex due to differing architectures and protocols. Security is another primary concern, as managing security across on-premises and multiple cloud providers necessitates consistent policies and vigilant monitoring to prevent breaches and ensure compliance. Additionally, efficiently utilising resources across hybrid clouds involves sophisticated monitoring and automation tools to optimise performance and cost-effectiveness. These challenges are real and pressing, and they demand attention and action.
Alarmingly, only 1% of organisations in Thailand plan to increase their investments in hybrid cloud management in 2024.
Organisations can ensure seamless integration, consistent security readiness, and efficient resource utilisation across diverse cloud platforms by investing in robust tools and practices for effective hybrid cloud management. This mitigates operational risks and security vulnerabilities and leads to cost savings due to well-managed cloud environments.
It’s crucial for CIOs in Thailand to urgently prioritise investing in new comprehensive management solutions and developing the necessary skills within their IT teams. This involves training staff on the latest hybrid cloud management technologies and best practices and adopting advanced tools that provide visibility and control over multi-cloud operations. Cracking the hybrid/multi-cloud code empowers CIOs to not only navigate these environments, but also unlock the potential of advanced technologies like AI, ultimately driving superior IT services and expanded business growth. The urgency of this task cannot be overstated, and the sooner you act, the better prepared your organisation will be for the future.
The Future of Work: AI Adoption for Enhanced Productivity
AI is a powerful tool for improving employee productivity and transforming internal operations.
However, only 12% of Thailand’s organisations invest in AI to enhance the employee experience.
This represents a missed opportunity for organisations to utilise AI’s potential to streamline processes, automate repetitive tasks, and provide personalised support to employees.
AI can significantly enhance operational efficiency by automating routine tasks, enabling staff to focus on strategic initiatives. For instance, AI-driven analytics platforms can process vast amounts of data in real time, providing actionable insights that help businesses make informed decisions quickly. AI frees employees to focus on higher-level tasks like developing innovative solutions and strategies. This empowers them to take on more strategic roles, fostering personal growth and career advancement.
The early adopters of AI in Thailand are already reaping the benefits, gaining significant competitive edge by enhancing employee productivity and satisfaction.
In Thailand AI adoption is gaining momentum within tech teams – 44% are exploring its potential for various use cases.
However, its capabilities extend far beyond. AI encompasses a wide range of technologies that can generate content, such as text, images, and code, based on input data. These versatile capabilities are not limited to tech teams, but can also be used for content creation, process automation, and product design in various industries. The success of these early adopters should inspire other Thailand organisations to consider AI adoption as a means to stay ahead in the market.
The enthusiasm for AI has yet to extend beyond tech teams, with only 19% of business units considering its adoption.
This difference highlights an opportunity for CIOs in the country to play a crucial role in advocating for broader AI adoption across the organisation. By demonstrating the tangible benefits, such as increased efficiency, reduced costs, and enhanced innovation, CIOs can drive more widespread acceptance and use. Encouraging cross-departmental collaboration and training on AI applications can further support its integration across business operations. CIO leadership is crucial for successful AI adoption.
The Importance of a Collaborative Ecosystem
Together, we can navigate the intricacies of advanced technologies and foster innovation in Thailand organisation. These market trends should guide you on how to establish a resilient and adaptable IT infrastructure that facilitate long-term growth and innovation. Emphasising modernisation and the strategic use of AI will enhance operational efficiency and position your organisation to harness emerging technologies effectively, all while being part of a supportive and collaborative community.
Stay tuned for more Ecosystm insights and guidance on navigating the Thailand technology landscape, ensuring your organisation remains at the forefront of digital transformation.
2024 has started cautiously for organisations, with many choosing to continue with tech projects that have already initiated, while waiting for clearer market conditions before starting newer transformation projects. This means that tech providers must continue to refine their market messaging and enhance their service/product offerings to strengthen their market presence in the latter part of the year. Ecosystm analysts present five key considerations for tech providers as they navigate evolving market and customer trends, this year.
Navigating Market Dynamics
Continuing Economic Uncertainties. Organisations will focus on ongoing projects and consider expanding initiatives in the latter part of the year. This means that tech providers should maintain visibility and trust with existing clients. They also need to help their customers meet multiple KPIs.
Popularity of Generative AI. For organisations, this will be the time to go beyond the novelty factor and assess practical business outcomes, allied costs, and change management. Tech providers need to include ROI discussions for short-term and mid-term perspectives as organisations move beyond pilots.
Infrastructure Market Disruption. Tech leaders will keep an eye out for advancements and disruptions in the market (likely to originate from the semiconductor sector). The disruptions might require tech vendors to re-assess the infrastructure partner ecosystem.
Need for New Tech Skills. Tech leaders will evaluate Generative AI’s impact on AIOps and IT Architecture; invest in upskilling for talent retention. Tech providers must prioritise creating user-friendly experiences to make technology accessible to business users. Training and partner enablement will also need a higher focus.
Increased Focus on Governance. Tech leaders will consult tech vendors on how to implement safeguards for data usage, sharing, and cybersecurity. This opens up opportunities in offering governance-related services.
5 Key Considerations for Tech Vendors
#1 Get Ready for the Year of the AI Startup
While many AI companies have been around for years, this will be the year that many of them make a significant play into enterprises in Asia Pacific. This comes at a time when many organisations are attempting to reduce tech debt and simplify their tech architecture.
For these AI startups to succeed, they will need to create watertight business cases, and do a lot of the hard work in pre-integrating their solutions with the larger platforms to reduce the time to value and simplify the systems integration work.
To respond to these emerging threats, existing tech providers will need to not only accelerate their own use of AI in their platforms, but also ramp up the education and promotion of these capabilities.
#2 Lead With Data, Not AI Capabilities
Organisations recognise the need for AI to enhance their workforce, improve customer experience, and automate processes. However, the initial challenge lies in improving data quality, as trust in early AI models hinges on high-quality training data for long-term success.
Tech vendors that can help with data source discovery, metadata analysis, and seamless data pipeline creation will emerge as trusted AI partners. Transformation tools that automate deduplication and quality assurance tasks empower data scientists to focus on high-value work. Automation models like Segment Anything enhance unstructured data labeling, particularly for images. Finally synthetic data will gain importance as quality sources become scarce.
Tech vendors will be tempted to capitalise on the Generative AI hype but for sake of positive early experiences, they should begin with data quality.
#3 Prepare Thoroughly for AI-driven Business Demand
Besides pureplay AI opportunities, AI will drive a renewed and increased interest in data and data management. Tech and service providers can capitalise on this by understanding the larger picture around their clients’ data maturity and governance. Initial conversations around AI can be door openers to bigger, transformational engagements.
Tech vendors should avoid the pitfall of downplaying AI risks. Instead, they should make all efforts to own and drive the conversation with their clients. They need to be forthcoming about their in-house responsible AI guidelines and understand what is happening in AI legislation world-wide (hint: a lot!)
Tech providers must establish strong client partnerships for AI initiatives to succeed. They must address risk and benefit equally to reap the benefits of larger AI-driven transformation engagements.
#4 Converge Network & Security Capabilities
Networking and security vendors will need to develop converged offerings as these two technologies increasingly overlap in the hybrid working era. Organisations are now entering a new phase of maturity as they evolve their remote working policies and invest in tools to regain control. They will require simplified management, increased visibility, and to provide a consistent user experience, wherever employees are located.
There has already been a widespread adoption of SD-WAN and now organisations are starting to explore next generation SSE technologies. Procuring these capabilities from a single provider will help to remove complexity from networks as the number of endpoints continue to grow.
Tech providers should take a land and expand approach, getting a foothold with SASE modules that offer rapid ROI. They should focus on SWG and ZTNA deals with an eye to expanding in CASB and FWaaS, as customers gain experience.
#5 Double Down on Your Partner Ecosystem
The IT services market, particularly in Asia Pacific, is poised for significant growth. Factors, including the imperative to cut IT operational costs, the growing complexity of cloud migrations and transformations, change management for Generative AI capabilities, and rising security and data governance needs, will drive increased spending on IT services.
Tech services providers – consultants, SIs, managed services providers, and VARs – will help drive organisations’ tech spend and strategy. This is a good time to review partners, evaluating whether they can take the business forward, or whether there is a need to expand or change the partner mix.
Partner reviews should start with an evaluation of processes and incentives to ensure they foster desired behaviour from customers and partners. Tech vendors should develop a 21st century partner program to improve chances of success.
People management has always posed challenges for businesses and their HR leaders. Leaders have to address skills shortages, develop strategies to attract and retain talent, and promote inclusiveness in their policies. Today’s digital landscape – where there is a scarcity of digital skills across industries – makes it even harder. Leaders are now paying close attention to employee experience and retention, and topics such as digital workplace, hybrid work, flexibility, and wellness have made it to management discussions.
At the Leaders Dialogue: Asian Sentiment 2023 conversation, Ecosystm Founder and Chairman, Amit Gupta; Ahmed Mazhari, President of Microsoft Asia; Padmashree (Paddy) Santosh, VP & Global Head of Learning, Diversity and Organisation Effectiveness at Olam Agri; and Luca Destefanis, Head of Marketing APAC at Kyndryl discussed where Asia is facing their biggest challenges in talent management and how to mitigate them.
Here are the key takeaways:
- Digital skills shortage is real
- Purpose empowers employees
- The ‘Productivity Paradox’ needs addressing
- Hybrid Work is the accepted norm
- Technology & Culture differentiate the employee experiences
- Getting workplace transformation right is crucial
Read on to find out more about the future of talent in Asia.
Download The Talent Conversation as a PDF
Organisations have relied heavily on technology to survive and succeed over the last 2 years.
Many tech providers have led the way – showing by example how strategies and technologies have to be shaped. They have also worked at improving their product and services offerings, introduced newer features and acquired companies to support market needs and grow their market share.
What should they do differently in 2022 to continue to succeed?
Ecosystm analysts think that a mere focus on products and features will not help. This is the time to focus on softer aspects such as skills, alignment with customer priorities, and an overhaul of channel programs.
Here is what Tech Providers should focus on in 2022 for continued success:
- Build relationships with Business
- Increase Automation to curb the effects of the Great Resignation
- Syndicate Skills; not just Software
- Focus on Channel Partners – and Pricing
- Be Local and Industry-Specific
Read on to find out what Alan Hesketh, Darian Bird, Niloy Mukherjee, Peter Carr and Tim Sheedy have to say to Tech Providers.
Click here to download Growing your Market Share in 2022 as a PDF.
