Global Digital Transformation Research Team at Frost & Sullivan

Executive Summary

  • Singapore leads the ASEAN region in terms of maturity of cloud infrastructure adoption among enterprises. The Singapore IaaS market is expected to grow at a CAGR of 31.3% from 2017 to 2024, with the overall market size reaching $1.67 billion in 2024 from $249.0 million in 2017.
  • Expansion of hyperscale cloud providers is eventually driving investments in data center expansions by data center operators. With cloud vendors such as Google, Alibaba, and AWS expanding their cloud service businesses in Singapore, the resultant demand for necessary storage and managed hosting is also expected to be higher. Launch of the Google Cloud Platform Region in Singapore in June 2017, where the first Google cloud servers were launched, has made Singapore well-positioned to emerge as the leading cloud infrastructure hub within Southeast Asia.
  • Hyperscale cloud vendors such as AWS, Google Cloud, and Alibaba Cloud are expected to push for the adoption of public cloud services by LBs, as well as SMBs. Factors such as high quality of service, affordable pricing, and scalability are expected to be key factors driving the adoption of public cloud services. The continuous roll-out of the Government Cloud (G-Cloud) initiative continues to fuel the demand for third-party outsourced IaaS.
  • Market participants will continue to include more bundled managed services, together with their cloud infrastructure portfolios. Singtel’s Cloud Lifecycle Services, including its managed cloud portfolio across hybrid cloud platforms, and Rackspace’s acquisition of Datapipe’s global business to enhance its managed services portfolio are some of the examples of cloud vendors increasingly pushing for the adoption of managed cloud services.
  • Singapore’s IaaS market comprises global service providers and local telecom service providers. Key global cloud service providers include Rackspace, Centurylink and Fujitsu. Among the local cloud service providers, national telco. Singtel continues to emerge as the leading cloud service provider.
  • Stiff competition and increasing commoditization of pure-play storage and cloud offerings is driving providers offer new services and innovate. These include bundling more managed services (such as managed security and analytics) into their cloud services portfolio, thereby shifting the focus away from being a pure reseller of public cloud services.

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