Lower cloud computing adoption among firms


THE cloud computing adoption rate among Malaysian enterprises has drastically fallen in 2021, despite more employees taking up remote working arrangements from home and students’ distance learning.

According to a recent global study on cloud transformation by the International Business Machines Corp (IBM), only 15% of Malaysian executives reported using a single private or public cloud in 2021, down from 60% in 2019.

IBM Malaysia MD Catherine Lian said the decline in the adoption rate was due to a number of factors, including the difficulty of holding face-to-face engagement with customers to run the implementation due to Covid-19 lockdown.

The study also found that about 39% of Malaysian CEOs recognised artificial intelligence (AI) as one of the top technologies that will deliver benefits for them.

“AI has the potential to not only boost economic growth but improve the livelihoods of millions around the world including Malaysia,” she noted.

Another IBM study revealed that nearly 66% of respondents from Malaysia said workloads being completely portable with no vendor lock-in is important or extremely important to the success of their digital initiatives.

“The cloud computing market has grown tremendously in the region, mainly driven by the fact that it costs less, coupled with the greater awareness of data security and the underlying technology.

“Hence, hybrid cloud isn’t just a strategy. It’s a reality in time to come. Being cloud-ready is essential to Malaysia’s digital transformation agenda,” she pressed.

IBM welcomed the government’s Digital First Programme to encourage the usage of cloud computing in the public sector.

“The adoption of cloud technology can help improve the public sector’s operational efficiencies and innovations in how work and processes are executed,” said Lian.

IBM has collaborated with public sectors such as the Penang Island City Council and Royal Malaysian Custom Department to help them to drive the modernisation and boost the operational efficiencies through innovative technology.

“As Malaysia plans to move towards a digitally-driven, high-income nation and a regional leader in the digital economy, we are eager to see Malaysia continue to push this transformation forward,” she stated.

IBM study found that a significant shortage of required digital talents and lack of infrastructure for developing new technology are cited as top challenges.

Commenting on Budget 2022, she said IBM Malaysia is optimistic that the allocations will help to steer Malaysia’s economy in the coming years.

“The emphasis by the government to enhance the usage of technology and digitalisation across various public and private sectors to spur economic growth along with digital talent development in the country is the right move forward.

“Agility, resiliency and productivity are the most important factors in determining the success of any organisation, irrespective of its size,” she said.

She noted that digital transformation is essentially about creating new business models, where technology enhances existing ones to become more efficient and productive.

“Technology adoption, such as hybrid cloud and AI, is critical to strengthening Malaysia’s economic competitiveness,” she added.