Security Outweighs Availability and Cost as the Top Determinant for Cloud Vendor Selection

• Asia-wide survey shows cloud adopters benefit from improved operational efficiency but need more employee training
• Nine in ten businesses say cloud vendors deliver satisfactory services that meet or exceed customers’ expectations

Security is the top consideration for Asian businesses when choosing their cloud strategy and cloud vendors according to a survey commissioned by Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group.

“The Next-Generation Cloud Strategy in Asia” survey obtained responses from 1,000 organisations across eight markets in Asia that are currently using cloud. Respondents listed security as the top reason for choosing their current strategy (private cloud: 74%; hybrid cloud: 70%; public cloud: 58%).

In choosing their cloud vendors, more than two-thirds (69%) of all respondents stated that security is the most important consideration, outweighing other factors such as availability (58%) and cost (55%).

The emphasis on security in cloud vendor selection is consistent across markets and industries, especially for the Philippines (85%), Indonesia (82%) and Thailand (78%), and for sectors such as Manufacturing, Media & and Telecommunications and Financial Services. In the previous survey[1] released in 2021, “security credentials” was also identified as the top reason for choosing cloud vendors by a majority (58%) of respondents.

“At Alibaba Cloud, we prioritise the critical importance of security in cloud adoption. We understand the potential impact that cybersecurity incidents can have on businesses, regardless of their size. That’s why we offer a wide range of comprehensive security solutions that are tailored to meet the specific needs of businesses throughout Asia, enabling them to safeguard their data, applications and infrastructure,” said Jiangwei Jiang, Senior Researcher and General Manager of Infrastructure Products, Alibaba Cloud Intelligence. “Globally, we have obtained more than 130 security and compliance certificates and our mission is to empower businesses by providing them with the necessary tools and resources to confidently embrace the cloud, with the assurance that their assets are protected by the industry’s leading security solutions.”

Beyond security, insufficient training for employees (private cloud: 42%; public cloud: 37%) and lack of budget (private cloud: 36%; public cloud: 36%) are the other major barriers businesses experience when implementing an effective cloud strategy.

Alibaba Cloud commissioned global market research firm NielsenIQ to conduct the survey, with an aim to better understand the state of adoption of the prevailing cloud strategies across Asia.

Unlocking operational efficiency through cloud adoption

Respondents, regardless of the type of strategy adopted, quoted “improved operational efficiency” as the biggest benefit of cloud adoption (hybrid cloud: 71%; public cloud: 62% and private cloud: 60%).

Public cloud users also see improved business continuity (47%), better support for remote workers (45%) and improved security and risk management (44%) as the other benefits of adopting the cloud.

“As businesses in Asia increasingly seek reliable and secure cloud solutions with local support, Alibaba Cloud is well positioned to address these needs. Our strong local expertise enables us to support customers, complementary to their internal resources. Additionally, we are committed to talent development and providing businesses with the necessary training and resources to maximise the benefits of our cloud solutions. Businesses can also benefit from a deep understanding of the local market and regulations, faster response times and our extensive experience in a wide range of industries from retail to finance, logistics to entertainment,” added Jiang.

Asia-based cloud vendors exceed user expectations

The survey showed that, the largest share of businesses (38%) are using regional/Asia-based vendors. In an improvement from the previous survey, an overwhelming majority (91%) of businesses reported that their experience in using cloud services either met or exceeded their expectations, demonstrating the high quality of cloud services available in Asia.

In Thailand, a notably high percentage of businesses (64%) have opted for regional/Asia-based vendors, while in South Korea, a larger share of respondents (56%) use local vendors.

In terms of industry, businesses in the Manufacturing (42%) tend to use regional/Asia-based vendors while a higher percentage of respondents in the Retail (45%) and Public Sector (45%) favor local vendors.

About the survey

The survey was conducted from the end of September to early October 2022, collecting feedback through online questionnaires from 1,000 cloud strategy decision-makers in small to large-sized organisations that are currently using cloud services in eight markets in Asia: Hong Kong, Malaysia, Singapore, the Philippines, Indonesia, Thailand, Japan and South Korea. The respondents represented a wide range of industries, including Financial Services, Gaming, Internet & Technology, Manufacturing, Media & Telecommunications, Public Sector and Retail.