RMITS will drive cloud spending in APAC in 2011: AMI

by CXOtoday Staff    Apr 28, 2011

cloud spendingThe cloud has made the adoption of specialized ICT solutions among small and medium businesses in the Asia-Pacific (APAC) region-excluding Japan-a viable possibility. In this region, remotely managed IT services (RMITS) account for a vast portion of the ICT spending pie. Access Markets International (AMI) Partners estimates that US$2.4 billion will be spent on these types of services in 2011 and this spending will more than double in the next 5 years. Remotely managed hardware (PC and servers) will be the area that sees the greatest increase in spending.

Remotely managed IT services are a logical choice, as a majority of APAC SMBs operate with limited financial and internal IT resources/management. This is exacerbated by the growing complexity of SMBs’ IT environments and growing dependence on IT in their business operations. Many services can be managed remotely. IT management of hardware and/or software by a third party can be done at the customer site or at the third party’s location. For companies with an infrastructure already on premise this is an attractive alternative replacing the need for skilled IT personnel on the payroll. “This,” says Venu Reddy, VP in AMI Singapore, “makes RMITS a logical solution for small businesses (SBs, companies with less than 100 employees) that neither have the capability nor willingness to manage the growing complexity of hardware and software in house.”

Most APAC SBs have few (if any) IT professionals on staff. As these companies grow, their need for technology grows. As more specialized business applications are being developed, the need for specially trained individuals grows too. With the use of RMITS the average SB owner is able to use innovative business solutions without hiring an IT professional. These RMITS are increasingly being offered by IT vendors and channel partners enabling APAC SBs to adopt new and advanced IT solutions.

RMITS will provide value not only to smaller businesses but also to mid-size companies (MBs, companies with 99 to 999 employees) in the APAC region. In fact, the availability and adoption of RMITS is giving MBs key benefits beyond technical skills, such as competitive pricing, and a smaller, less daunting financial/ organizational commitment. For this reason, AMI believes that RMITS will be an option that APAC MBs will adopt faster than other business segments. IT vendors should target these companies with solutions/bundles that address these needs.

In an effort to catch and surpass the more ICT advanced countries (such as Australia), India and China have a vast number of small and medium businesses who are eager to leverage the new IT solutions now available. Remotely managed services through the cloud are one way to accomplish this goal. IT vendors and channel partners will need to incorporate a Go-To-Market strategy that will enable these SMBs to compete with large enterprises without the necessity of building and maintaining a costly infrastructure and delivery team.