Microsoft Optimistic on Asian Cloud Market
Asia, as you know, is the largest continent in the world, both in terms of size and population. It is also one of the fastest growing regions in the world, with China and India leading the way. Over the last few years, this continent has seen many people climb out of poverty, and many countries have a sustainable and growing economy that provides jobs to millions of people. Much of these positive developments can be attributed to education and technology.
Asian companies are always looking for ways to improve their operations , and technology has been a major aspect in its quest for higher efficiency and profits. In such a scenario, it is little wonder that cloud computing is the present and future of these Asian companies. Though the rate of adoption in Asia has been much slower when compared to Europe or the U.S, it’s still picking up fast.
To cater to this growing demand, cloud leaders like Microsoft are going all out. The president of Microsoft Asia, Ralph Haupter, opined that Asian companies are always looking for means to digitally transform their business, and cloud is the technology that will make it possible. His statement is based on a report that Microsoft released recently about the state of cloud affairs in Asia.
According to this report, 78 percent of 1,494 respondents who were surveyed for this report believe that cloud computing is an important component in their digital transformation strategy. In addition, 80 percent think cloud strategy is vital for the long-term growth and economic sustainability of this region. However, only 29 percent of respondents have made plans to implement it.
This difference between those who believe in the need for cloud and those who have plans to execute it, is the opportunity area for Microsoft. If it can talk to the remaining 51 percent of respondents, identify the reasons for non-implementing and provide a roadmap for integrating cloud into their operations, then it can be a huge business for Microsoft. There is even a potential for Microsoft to become the leading cloud provider in Asia, if it plays its cards well.
One of the biggest advantages that Microsoft has over that of its competitors is its brand name. A large number of households in Asia have a computer, so “Microsoft” is a household name here. To top it, Microsoft has 13 data centers in Asia to cater to the demands of its clients, so it’s infrastructure is already in place. Also, all these 13 data centers support Azure, so this makes it easy for Microsoft to expand its cloud presence in Asia.
Further, Microsoft has identified potential cloud partners in different countries and is working with them closely. For example, in China, Microsoft has partnered with a company called 21Vianet to provide local services to clients in Beijing and Shanghai. The obvious advantage is these local players have a better idea of their market conditions, and can provide a better service to local clients.
A combination of these different strategies can help Microsoft take a lion’s share in the Asian market within the next few years. However, it has to keep stay on top of intense competition from companies like AWS and Alibaba.