Data from Saugatuck’s latest global survey on Cloud and Digital Business adoption and use indicates tremendous activity worldwide, with the most activity, and the most reported success, among firms in the Asia-Pacific (AsiaPac) region. This suggests many things to our analysts, chiefly that (1) Digital Business certainly is “real” on a global basis, and (2) firms in the AsiaPac region continue to outpace North American and European firms in terms of Cloud and Digital Business planning, adoption, use, and reported success. It appears that firms in the AsiaPac region may have a leg up on the rest of the world in future Digital Business success.

What the data shows us right now is that, on average, about one quarter of North American and European firms report having 50 percent or more of their business IT portfolio in Cloud today. Meanwhile, nearly half of AsiaPac firms in our survey report having 50 percent or more of their business IT portfolio in Cloud. Figure 1 presents that data, along with Cloud portfolio expectations regionally through 2018.

Figure 1: Where is the Most IT in Cloud Through 2018?
Source: Saugatuck Technology Inc., 2014 global survey; n = 208

This data jibes with the long-standing, relatively aggressive approach to AsiaPac SaaS and Cloud adoption first reported by Saugatuck in 2010, and updated in June of 2013 828MKT, Cloud IT in AsiaPac: Pedal to the Metal and Passing the West, 20Dec2010; 1230MKT, Different Growth from Different Ground: Blossoming of the Asian Cloud, 21June2013).

But regional aggression is more than just about using Cloud-based IT in general. AsiaPac firms are also investing lots of resources in a broad spectrum of Digital Business efforts – and reporting significant success. As clients of Saugatuck’s CRS subscription research service saw in our topline survey data report in June, user enterprises in all regions report relatively high levels of success with their initial Digital Business efforts.

But as the data presented in Figure 2 indicates, AsiaPac firms report almost double the success levels as do their North American and European peers / competitors. Again, the AsiaPac position and pace is head and shoulders, and perhaps arms and chest, above the other regions.

Figure 2: Everybody’s Successful at Digital Business – AsiaPac More So
Source: Saugatuck Technology Inc., 2014 global survey; n = 208

As we have noted in previously published research, the widespread high levels of Digital Business success reported suggest to us that most efforts are small, initial types of projects, likely trials, proofs-of-concept, or limited extensions of established business operations.

But the continuing and complementary patterns of data give us this net takeaway: Firms in the AsiaPac are much more aggressively adopting and utilizing Cloud-based IT and business services, and using them more aggressively and more widely to build and take advantage of Digital Business opportunities.

Why is it Happening?

The core factors behind the aggressive AsiaPac approach to Digital Business are the same as what drove regional SaaS and Cloud IT adoption and use: A relative lack of business infrastructure, steadily-growing economies, and the relative lack of a mid-tier of business competitors.

Massive invest by big business and government has expanded availability of Cloud-based services throughout the region, and enabled IT infrastructure for firms that had none of could not afford significant improvements. And even with the recent regional economic slowdowns, business investment and overall growth in India, China, the ASEAN nations, and other regional spots continues to outpace most of the West. And the traditional regional business hierarchy, lacking a large middle class of firms, creates massive opportunity for new business, new types of business, and new ways of doing business. It all adds up to fertile ground for Digital Business.

To read the Market Impact, click here.

Originally published by Saugatuck Lens360 on August 14, 2014. Published with permission.

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