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Tag: Gartner

  • Alibaba Cloud Ranked First in Asia Pacific by Gartner

    Alibaba Cloud Ranked First in Asia Pacific by Gartner

    Alibaba Cloud, the cloud computing and data intelligence arm of Alibaba Group, has been named first in Asia Pacific(*) market share for IaaS (Infrastructure as a Service) and IUS (Infrastructure Utility Services) in two consecutive years as per Gartner’s latest report revealed earlier this month named Market Share: IT Services, 2018. It has also retained its top three global provider position in the same space.

    According to this Market Share conducted by global analyst firm Gartner, Alibaba Cloud led the Asia Pacific market for IaaS and IUS with 19.6% market share (+4.7% market share gain from 2017). The technology innovator is followed by 11.0% and 8.0% market shares of the second (AWS) and third player (Microsoft) respectively in Asia Pacific in 2018.

    Alibaba Cloud boasts a strong network in Asia Pacific, with 15 availability zones in the region outside mainland China, covering Hong Kong, Singapore, Australia, Malaysia, Indonesia, India and Japan markets. It is the only global cloud provider that has set up local data centers in Indonesia and Malaysia, offering a wide range of cloud and data analytics products.

    “It is very encouraging that our continued dedication to enabling cloud development across industries in both Asia Pacific and globally(**) has been recognized by world’s leading research and advisory company. As the only global cloud provider originated from Asia, we will continue to champion millions of businesses through our world-class infrastructure, advanced analytics tools and thriving ecosystem.” said Lancelot Guo, Vice President of Alibaba Group and Head of Strategy and Marketing at Alibaba Cloud.

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  • Global public cloud spend to 17.5% in 2019

    Global public cloud spend to 17.5% in 2019

    Gartner forecasts worldwide public cloud services market will grow 17.5% in 2019 to reach a total of $214.3 billion, up from $182.4 billion in 2018.

    Cloud system infrastructure services, or infrastructure as a service (IaaS) is forecast to grow 27.5% in 2019 and reach $38.9 billion, up from $30.5 billion in 2018 (see Table 1). The second-highest growth rate of 21.8% will be achieved by cloud application infrastructure services, or platform as a service (PaaS).

    Gartner research vice president, Sig Nag, says “we know of no vendor or service provider today whose business model offerings and revenue growth are not influenced by the increasing adoption of cloud-first strategies in organizations. What we see now is only the beginning, though. Through 2022, Gartner projects the market size and growth of the cloud services industry at nearly three time the growth of overall IT services.”

    Gartner expects that by the end of 2019, more than 30% of technology providers’ new software investments will shift from cloud-first to cloud-only. This means that license-based software consumption will further plummet, while SaaS and subscription-based cloud consumption models continue their rise.

    “Organizations need cloud-related services to get onboarded onto public clouds and to transform their operations as they adopt public cloud services,” said Nag. Currently almost 19% of cloud budgets are spent on cloud-related services, such as cloud consulting, implementation, migration and managed services, and Gartner expects that this rate will increase to 28% by 2022.

    “As cloud continues to become mainstream within most organizations, technology product managers for cloud related service offerings will need to focus on delivering solutions that combine experience and execution with hyperscale providers’ offerings,” said Nag.

    He sees the complementary approach as driving both transformation and optimization of an organization’s infrastructure and operations.

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  • Half of PaaS services now cloud-only

    Half of PaaS services now cloud-only

    A new Gartner report, “Platform as a Service: Definition, Taxonomy and Vendor Landscape, 2019” revealed that 48% of 550 PaaS offerings are cloud-only. Not a single vendor has a foothold across all 21 segments, and 90% of them only operate within a single PaaS market segment.

    “Business and technology leaders are shifting to strategic investment in cloud computing,” said Yefim Natis, research vice president and distinguished analyst at Gartner. “Cloud computing is one of the key disruptive forces in IT markets that is gaining mainstream trust.”

    Natis commented that although many organizations anticipate long-term retention of on-premises computing, the vendors of nearly half of the cloud platform offerings bet on the prevailing growth of cloud deployments and chose the more modern and more efficient cloud-only delivery of their capabilities.

    Gartner predicts that enterprise IT spending for cloud-based offerings will surpass spending on non-cloud IT offerings by 2022. The analyst forecasts total PaaS market revenue to reach $20 billion in 2019, and to exceed $34 billion in 2022.

    In this shift to the cloud, database and application platform services represent the largest market segments, with blockchain, digital experience, serverless and artificial intelligence/machine learning (AI/ML) platform services as the newest.

  • Indian eCommerce growth fastest in Asia

    Indian eCommerce growth fastest in Asia

    The Indian eCommerce growth rate is now the highest in Asia – yet online still accounts for less than one per cent of total retail sales.

    Gene Alvarez, MD and VP at research house Gartner, told a symposium in Goa this week that India represents a US$7 billion market, growing at more than 40 per cent every year.

    “Currently B2C commerce leads the market in India, while B2B is limited to organisations that drive online sales while trying to cut costs in dealing with their partners and distributors.”

    More than 40 per cent of digital commerce transactions came from a mobile device in 2014, and that proportion is likely to exceed 50 per cent in 2015. Due to the low internet penetration in India, mobile has leapfrogged the PC, and consumers are using mobile as the primary channel for online shopping.

    “There is a lot of hype due to the high growth and high expectation of the market, and many companies are fast expanding to grab market share and increase visibility. However, the fierce competition is pushing up costs while the average order value remains low. Players need to execute on the basics to ensure the growth is sustainable,” said Alvarez.

    Gartner identified the top five things Indian digital commerce players should focus on to drive growth:

    • Customer Experience: This is the most important differentiator of a digital commerce service as price becomes transparent across sites. Providers that can design a compelling user interface, personalise landing pages, search results and product feeds based on the shopper’s behaviour, and effectively engage shoppers to make them loyalty customers, will win over those that cannot.
    • Product Range: Due to the nascent nature of India’s digital commerce market, product range and choices are still quite limited even on major marketplaces. Providers will need to expand the product ranges to make the service attractive to shoppers through organic growth and partnership. Focusing on a few categories, such as consumer electronics, fashion and grocery can also be the right strategy to deeply penetrate a product segment and become the go-to site for that category.
    • Delivery: This is a key challenge in India given the less developed logistic infrastructure and the lack of last-mile connectivity in remote areas. Providers will have to partner with multiple logistic providers to leverage their strengths in national, regional and local delivery, as well as with retail stores as pick-up stations to offer reasonable delivery speed and costs. They also need to consider putting in place reverse logistics for returns, which significantly impacts the customer experience.
    • Payment: Payment has a big impact on the conversion rate, and a frictionless payment process greatly helps increase digital commerce sales. India has relatively low credit card penetration, and most of digital commerce is done via cash on delivery. Despite regulatory challenges, digital commerce providers should work with payment providers to offer a frictionless payment experience.
    • Customer Service: Besides offering immediate help on site and via the contact center, and making processes and cost information transparent, digital commerce providers should think carefully about their return strategy. A generous return strategy encourages sales especially for categories such as fashion and consumer electronics.

    This week’s Gartner Symposium/ITxpo is a major gathering of CIOs and other senior IT executives. The event delivers independent and objective content with the authority of Gartner, a leading IT research and advisory organisation, and provides access to the latest solutions from key technology providers.

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