17 Jun
2016

Asian-Pacific Companies Are Growing Internationally Due to the Cloud

The cloud is enabling Asian-Pacific companies to extend their international presence at over double the pace of their competitors, according to a study by NetSuite and Frost & Sullivan. The study, which surveyed 800 senior executives from Australia, New Zealand, Singapore, the Philippines and Hong Kong, found that 70 percent of companies that use the cloud command an international presence, compared to 22 percent of non-cloud companies. Cloud users are also penetrating new markets more aggressively, with 71 percent venturing into new markets over the past five years.

Companies in the Philippines, Hong Kong and Singapore are seeing some of the fastest international expansion thanks to the cloud. Meanwhile, non-cloud users are struggling to keep up with the competition. In fact, 31 percent of Hong Kong executives who are not using the cloud complain that their existing software is not adequate to support international expansion.

 

Microsoft in Asia: A Case Study in Asian-Pacific International Cloud Partnerships

Early cloud adopters are outpacing their competitors. Many American cloud solutions are supported by Asian branches, especially in regions that have a significant English-speaking population. For instance, Microsoft has over 23,000 employees and more than 63,000 partners in Asia and stands poised to expand rapidly in the region.

Microsoft’s presence in Asia enables companies to utilize cloud solutions that have proven effective for American companies, such as Microsoft Office 365, the fastest-growing cloud productivity suite among large enterprises around the globe. Gartner research shows that Office 365 adoption is accelerating most rapidly in many of the same Asian-Pacific regions where cloud adoption is growing fastest, including Australia, New Zealand, Singapore and Hong Kong. These countries have large English-speaking populations, making the adoption of American cloud technology a natural transition. For non-English speakers, Microsoft developed the Skype translator app to enable instant real-time translation, further favoring international expansion.

 

China Mobile and Nokia Join Hands in the Cloud

Following Microsoft’s global partnership trend, China Mobile, the largest company in Hong Kong and the world’s largest mobile operator, announced a $1.53 billion agreement with Finnish telecommunications provider Nokia to develop a cloud network.

China Mobile was the first mobile operator based in mainland China to establish an international headquarters when its subsidiary opened up its Hong Kong global network center in 2014. Continuing this international expansion, Nokia will provide China Mobile with a new type of base station that will simultaneously handle multiple radio technologies and scale to support all connection speeds.

 

IBM Watson’s Cloud Solution Empowers DBS Bank in Singapore

A similar story played out in Singapore, where the city’s largest company, DBS Bank, became the first Asian company to adopt IBM‘s cloud-based cognitive computing technology Watson in 2014. DBS deployed Watson’s big-data analytics to provide a better user experience to its customers and gain a competitive advantage as a regional wealth player. During DBS’ first year of implementing Watson, the bank’s revenue grew 43 percent, reports Barron’s.

This June, DBS expanded its partnership with IBM by working with the downtown Singapore Watson Centre, which will support companies entering into the rapidly-expanding Blockchain market. DBS and IBM will work together to pioneer new disruptive technologies and support financial technology startups in the region.

 

CBA Expands From Australia Into China Using the Cloud

Australia also is experiencing cloud technology growth. The nation’s largest company, the Commonwealth Bank of Australia (CBA), began transitioning to the cloud in 2009. Four years into CBA’s cloud migration, its customer satisfaction ranking had leaped from the bottom quartile to number one, while its IT costs shrunk from 50 percent of total capital expenditure annually to 26 percent, reports TM Forum.

CBA’s cloud migration supported an expansion into Asia that enabled the bank to open new branches in Shanghai in 2010 and Beijing in 2013. This year CBA opened an Innovation Lab in Hong Kong to help financial technology startups improve their digital platforms.

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