Data is one of the greatest assets in the modern era. Businesses, governments, and entire societies function on the correct usage, storage, and security of data. This is why the cloud is so important. Several sectors across different countries use data centers and cloud infrastructure to streamline processes, be more efficient, and maintain security. Today, even developing countries are choosing a cloud adoption framework to stay ahead. In this blog article, we’ll use research and case studies to find out exactly how cloud adoption has taken the world by storm.
What Is Cloud Adoption?
Cloud adoption is the transition from traditional on-premises server infrastructure to a remote or cloud-based infrastructure. Cloud computing meets all your data needs with services, hardware, and software from your cloud platform. Businesses often choose a cloud or hybrid cloud framework to improve scalability, efficiency, storage, and security. In an increasingly digital world, companies need to invest in innovative technologies like the cloud to stay ahead.
Cloud environments can be useful for small, developing, and large businesses alike. While larger companies might need the extra space for the amount of data they handle, cloud adoption can also help developing companies scale up or expand as needed without costing too much. Additionally, cloud adoption makes it possible to access networks from anywhere in the world – which is a great advantage for companies with remote or hybrid workforces. Cloud transformation can be used across different companies and different sectors – and its popularity is only growing.
According to Gartner, more than 85% of organizations will embrace a cloud-first principle by 2025 and will not be able to fully execute their digital strategies without the use of cloud-native architectures and technologies. The global cloud computing market size is expected to reach US$ 1,251.09 billion by 2028. Based on its massive following, the many advantages of cloud adoption have taken the world by storm so let’s take a closer look at cloud adoption by country.
Cloud Adoption by Country
Every country is in a race to stay ahead and rapid cloud adoption has pushed more countries to keep up. We’ve listed some of the major countries that have made their mark in moving to the cloud and we’ve noted some of the driving factors and challenges of cloud adoption:
- Singapore - Singapore’s Smart Nation initiative is propelling its vision for a “digital-first” culture and has made the country a leader in APAC's cloud adoption – ranking the highest when it comes to the adoption of cloud-based services. According to the BCG Market Report, Singapore’s public cloud market is expected to reach US$ 3.6 billion in 2023.
- United States of America - The US has long been a leader in cloud adoption across industries – especially for businesses. A push towards digital transformation is also a driving force for cloud adoption. According to a study by Statista, 48% of respondents have currently adopted the industry cloud. The US public cloud market is projected to reach US$ 258.10 billion by the end of 2023.
- China - The Chinese market for cloud computing is set to reach US$ 32 billion in 2021 and to climb to US$ 90 billion by 2025 by which time 60% of the country’s businesses and government agencies will rely on cloud computing as an integral part of their daily operations. As a major manufacturing country, China also has several powerful domestic IT manufacturers that use the cloud to be more efficient.
- Australia - Public cloud spending in Australia is set to have a growth rate of 83% over the next five years. By 2026, the country’s cloud expenditure is projected to reach a staggering A$ 22.4 billion. Advancements in AI, machine learning, and big data analytics drive the need for robust and scalable computing capabilities provided by the cloud in the country. Australia’s financial, healthcare, education, and government sectors are among the frontrunners embracing cloud technologies.
- Germany - Germany’s revenue in the public cloud market is projected to reach US$ 23.96 billion in 2023. German enterprises have looked to cloud adoption for flexibility, scale, and agility for post-pandemic competitiveness. According to the ISG, the need to continuously improve customer experience is one of the most common reasons companies in Germany are investing in digital transformation and cloud-native platforms.
- The United Kingdom - The revenue for the public cloud market in the UK is projected to reach US$ 23.61 billion in 2023. Moreover, Software-as-a-Service dominates the UK market with a projected market volume of US$ 12.11 billion in 2023.
- Japan - The cloud computing market in Japan is expected to grow by US$ 13,492.21 million from 2022 to 2027. The country remains at the top of the global cloud services market, ranked third by the U.S. Department of Commerce. This is due to Japan having one of the most extensive broadband fiber deployments with the largest number of fiber users in the world. The country’s comprehensive suite of modern laws and privacy legislation also ensures this position.
- Canada - The public cloud market in Canada is set to grow to more than US$ 1 trillion worldwide by 2026. Almost 6 out of 10 Canadian business leaders view the cloud as a core delivery mechanism. For the North American country, cloud adoption has effectively reduced technology infrastructure costs, improved productivity, ensured operational resilience, and enhanced security.
- Italy - Italy’s revenue in the public cloud market is projected to reach US$ 9,198.00 million in 2023. Digitalization of the public administration sector has always been a key priority for the country. This growth of cloud adoption can be credited to the government’s support and investments by multinational companies.
- South Korea - The South Korean landscape has been ripe for digital transformation and cloud adoption due to the rise of advanced technologies, demand for data storage, and the government's encouragement of the cloud. Revenue in the public cloud market for South Korea is projected to reach US$ 8,126.00 million in 2023.
The driving trends for cloud adoption across these countries remain the support from governments and the advancement of technology. Naturally, these powerhouse countries are constantly trying to innovate, improve, and elevate the way they serve their people. Through manufacturing, service delivery, and technology – these countries can use cloud frameworks to gain global recognition and create a better life for their citizens.
While these countries are trying to use cloud infrastructure, there are challenges to reaching global cloud adoption. Some of the main challenges include:
- A lack of digital infrastructure to implement widespread cloud adoption.
- Lack of cloud computing experts and professionals in the field.
- Unequal wealth distribution that prevents access to cloud platforms across social boundaries.
- Regulations and compliance certifications.
- Cultural and economic resistance from people and businesses who don’t know much about cloud computing.
- Hesitancy about data security and privacy.
- Political and geopolitical instability and conflict.
As these countries all race towards cloud adoption, cloud usage has also begun to be integral to various business sectors in developing countries as well. Let’s explore the cloud adoption trends across different sectors in these developing countries.
Cloud Adoption Trends Across Sectors in Developing Countries
Developing countries often don’t have the funds or political leverage to elevate infrastructure. As a result, the affordability of cloud adoption has become increasingly attractive across several sectors in these developing countries. A few examples include:
- Healthcare – To keep up with growing healthcare concerns and overwhelmed facilities, this sector has adopted cloud infrastructure to increase flexibility and efficiency. Cloud adoption helps with processing patients, improving scalability, and ensuring real-time analysis. The COVID-19 pandemic put a massive strain on healthcare sectors in developing countries and could be the reason the sector opted for cloud adoption. The cloud also provides the healthcare sector with reliable cybersecurity measures and data backup options in the event of a cyber-attack or natural disaster.
- Retail – The retail sector has grown immensely in the last few decades. With digital transformation, e-commerce has become a thriving field in the retail sector and has pushed more businesses into developing their IT infrastructure. Cloud adoption has provided a scalable, flexible, and secure platform for online shopping and application deployment that improves business outcomes.
- Finance - Banks and other financial institutions are an integral part of any society. These establishments house massive amounts of confidential data and are under constant pressure to comply with data safety regulations. Cloud adoption ensures that the financial sector has a protected and reliable platform to run applications, store personal data, and allow secure transactions.
- Manufacturing – The manufacturing sector has the power to destabilize entire supply chains. As such, developing countries must build up the manufacturing sector using reliable, efficient, and advanced technology. With cloud adoption, manufacturing sectors can benefit from massive data analytics, automation, and security.
- Educational – The COVID-19 pandemic also rushed the educational sector into a digital transformation to enable remote learning and teaching. As a result, many schools and universities adopted cloud frameworks to improve flexibility, scalability, and accessibility for students and teachers alike. The cloud adoption strategy has proven to be more affordable and efficient and many developing countries chose to stick with a remote or hybrid remote learning setup.
According to an ISACA report, cloud adoption provides an attractive opportunity for the fiscally constrained governments of developing regions to improve access to health care, education, commerce, and finance through initiatives such as mobile health care, mobile education, e-commerce, and mobile banking. Cloud technologies also have the potential to reverse the threat of climate change posed by transitioning economies. Emerging technologies have been a driving force in cloud adoption in developing countries as well.
Adopting cloud technology has been crucial in the development of Artificial Intelligence and the Internet of Things – which have helped to evolve most countries and sectors across the globe. Naturally, developing countries will also look to invest in these advanced technologies through the adoption of cloud frameworks. Moreover, the argument for cloud adoption in developing countries can be seen in action through several real-life case studies already made across different sectors around the world. Let’s explore those as well.
Cloud Adoption Case Studies for Specific Businesses in Developing Countries
As developing countries seek out innovative ways to grow, cloud adoption across several sectors has been implemented. These are some of the cloud adoption case studies across specific business sectors that have helped to improve and enhance developing countries:
Financial Sectors Using the Cloud in Developing Countries
The financial sector processes large amounts of confidential and valuable data each day. Financial institutions need to have an effective, secure, and reliable framework to manage rapidly evolving needs. The need for mobile banking apps, marketing tools, and extensive data storage solutions has prompted many in the financial sector to choose the cloud – which we can see in action here:
- Axis Bank – India’s third largest private sector bank doubled down on its cloud-first approach and invested in a cloud platform to “build, innovate, and scale.” The cloud can also be used by banks for their large data lake capabilities to store everyday data or streamline processes and transactions.
Healthcare Sectors Using the Cloud in Developing Countries
Healthcare facilities need to be efficient, secure, and reliable for the safety of vulnerable patients. Cloud adoption can help these establishments by speeding up processing, and analytics, and ensuring cybersecurity. These are some of the healthcare sector case studies showcasing cloud adoption:
- Al Abeer Medical Center – This multinational healthcare organization owns and operates medical centers and hospitals across Saudi Arabia, Qatar, UAE, Oman, Kuwait, and India. The establishment uses Sangfor’s cloud-based aDesk Virtual Desktop Infrastructure (VDI) solution to ensure simplistic virtualization, integrated accessibility across platforms, and the prevention of sensitive data leakage.
- Global Care Hospital – The private medical institution based in Abu Dhabi also took to using the Sangfor Virtual Desktop Infrastructure (VDI) solution to elevate the processing power of the healthcare facility. With a centralized control center, the facility could seamlessly manage, access, and secure all data and operations.
- RS Pondok Indah – The Indonesian healthcare provider used Sangfor’s Internet Access Gateway (IAG) platform to improve resource management, access control, and visibility across the network – all facilitated by the cloud.
- Discovery DrConnect – The South African cloud-based platform was established in 2017 to allow Discovery Health medical aid members to ask doctors questions, receive virtual care, and manage their health goals at any time. The COVID-19 pandemic bolstered the platform and ensured that telemedicine services could be received across remote areas. Many other applications of cloud adoption in healthcare can be seen in South Africa.
Retail Sectors Using the Cloud in Developing Countries
Retail sectors in developing countries rely on innovative technology to keep up with the drastic e-commerce landscape. Cloud adoption has been an integral part of this strategy. Here are some examples of cloud adoption in the retail sector:
- Budget Mart – This grocery and convenience store in the Philippines struggled with archaic servers and bottlenecked resources. However, the Sangfor Hyper-Converged Infrastructure (HCI) elevated the company’s processing performance to ensure streamlined systems.
- Alfamart – This Indonesian franchised chain of convenience stores has over 10,000 stores across Southeast Asia. With such a large network, performance, visibility, and complexity became an issue. Fortunately, Sangfor’s Internet Access Gateway (IAG) platform simplified operations while streamlining processes and increasing visibility across the network.
- Lawson – This franchise is one of the biggest convenience chain stores in the Philippines. However, the company struggled with operating efficiency, security concerns, and continuity issues. The Sangfor Next-Generation Firewall (NGFW) ensured cloud-based, proactive vulnerability scanning and advanced persistent threat protection to keep the business running efficiently and safely.
- Index Living Mall - The Thailand-based company specializes in the design, manufacturing, and distribution of furniture. The company struggled with effectively managing its 40 branches and looked to cloud solutions to help. Sangfor’s Internet Access Gateway (IAG) was used to improve bandwidth management, access control, and overall security.
- Supermercados - This Peruvian supermarket chain has around 80 locations that are rapidly expanding. The company made use of a cloud-based solution to maximize visibility, enhance flexibility, and ensure effective mobility. For the South American establishment, cloud adoption has provided “all the benefits of a full-scale solution with less hardware and lower costs.”
Educational Sectors Using the Cloud in Developing Countries
Education is the key to a successful future. It should come as no surprise that many educational facilities are choosing cloud-based solutions to elevate their infrastructure. Here are some of the case studies showing how effective cloud adoption has been in the educational sector for developing countries:
- Dow University of Health Sciences – This establishment specializes in education, research, and community service. The facility struggled with performance efficiency, data protection, and complexity. Sangfor’s Hyper-Converged Infrastructure ensures enhanced performance, data backups, and seamless, centralized operation.
- Universiti Malaysia Pahang – Based in Malaysia, this public technical university had issues with ineffective IT infrastructure, data security, and downtime concerns. Fortunately, the cloud-based Sangfor Hyper-Converged Infrastructure with built-in Disaster Recovery solutions allowed for effective processing power, data backups, and continuity.
- Systems Technology Institute - As one of the biggest colleges in the Philippines, this institution required a cloud solution with enhanced security, control, and monitoring capabilities. With over 70 campuses, Sangfor provided the Next-Generation Firewall (NGFW) to ensure security over each campus – coupled with central management and analysis.
- Rugby School Thailand – Hailed as a benchmark educational facility, RST was quick to use cloud adoption to combat inefficient processing, access management, and security concerns with Sangfor’s Internet Access Gateway (IAG) platform.
- Sripatum University – This is one of Thailand's oldest and most prestigious private universities. Using a combination of cloud-based platforms, the facility could combat inefficiency, security, and access management. With Sangfor’s Internet Access Gateway (IAG), the Next-Generation Firewall (NGFW), the Endpoint Secure platform, and the Sangfor.
- NewCampus – This online, live learning platform in Southeast Asia hopes to train rising managers within hyper-growth organizations. Using cloud-based technologies, the educational platform offers online classes, workshops, and training services.
Manufacturing Sectors Using the Cloud in Developing Countries
Developing companies need to have a strong manufacturing sector to engage in global trade and ensure effective supply chains. Cloud adoption can help in this sector by streamlining processes, providing analytics, and ensuring automation. 71% of MEA manufacturers are pursuing a digital-first approach to business. Some of the case studies for cloud adoption in the manufacturing sector of developing countries include:
- Manufacturing in MEA - The Middle East’s smart factory automation market was anticipated to reach a record-high US$ 17 billion in 2020. Cloud adoption facilitated this mass movement and allowed the use of robotics in manufacturing sectors.
- Tesla – The electric car manufacturing giant uses several advanced technologies such as robotics, AI, 3D printing, and more -which are all facilitated by cloud adoption.
- JAC Motors – Based in China, JAC Motors is a renowned car manufacturer with several branches. The company sought an efficient, secure, and stable cloud infrastructure to support its research, production, and supply. Sangfor’s Hyper-Converged Infrastructure coupled with the Sangfor Cloud Platform provided efficiency and security.
- PT Pertamina (Persero) – This Indonesian state-owned oil and natural gas corporation struggled with bandwidth management and access control. After using Sangfor’s Internet Access Gateway (IAG), visibility, efficiency, and control were improved.
- PT Toyota Astra Motor – As a distributor of Toyota automobiles in Indonesia, this facility requires infrastructure with reliable bandwidth management and control. Sangfor’s Internet Access Gateway (IAG) was crucial in providing a simple, centralized, and controlled cloud solution.
- Toshiba Hong Kong Limited – This facility was the sole agent for Toshiba Home Appliances in Hong Kong and Macau. With a remote workforce, it faced challenges with security, visibility, and access control. Sangfor’s Internet Access Gateway (IAG) was the ideal infrastructure solution and provided secure connections, user security, and data protection.
- Kweichow Moutai – This is a famous distillery in China that was looking to launch its Smart Moutai application and elevate its IT infrastructure. Sangfor’s Hyper-Converged Infrastructure easily facilitated that transition and provided a reliable and rapid setup.
- Coca-Cola Bottlers Management Service – Based in Shanghai, the company facilitates the production of non-sparkling Coca-Cola beverages for the Mainland Chinese market. Using Sangfor’s Endpoint Secure and Cyber Command platforms to keep the cloud secured while Sangfor’s Cyber Guardian actively looked for threats.
Government Sectors Using the Cloud in Developing Countries
The government sector is crucial in the digitalization of a developing country. These establishments are key to advancing lives through technology. Successful cloud adoption has been used across developing countries for government entities – here are some of the examples below:
- Latin America – In Latin America, the government took to using the cloud to enhance service delivery. From delivering food parcels, vouchers, and medicine to providing vaccine information – the cloud’s scalability, performance, and flexibility improved the lives of citizens.
- Malaysian Government Department – The department faced difficulty with limited in-house cybersecurity manpower and expertise. Sangfor’s Cyber Guardian came to the rescue with comprehensive security and effective protection.
- The Ministry of Science, Technology, and Innovation – This leading Malaysian ministry is focused on research and development, however, struggled with finding the right security infrastructure. Sangfor’s Next-Generation Firewall (NGFW) and Endpoint Secure platforms provided precise endpoint protection and active security against cyber threats.
- Department of Mineral Resources Ministry of Environment – Based in Thailand, this government department serves as the country’s geological fact-finding agency. When faced with an inefficient and unprotected infrastructure, Sangfor’s Next-Generation Firewall (NGFW) was used to streamline performance and defend the network.
Now that we can see these real-life case studies of cloud adoption in action for developing countries, we need to ask what are the driving forces behind cloud adoption in developing countries.
Trends Driving Cloud Adoption in Developing Countries
Developing countries are in a hurry to keep up with the drastically changing modern landscape. As seen above, cloud adoption has been a crucial element in driving innovation, streamlining processes, and elevating infrastructure across sectors in developing countries. Let’s look at a few of the main trends that are also driving cloud adoption in developing countries:
- Rise of Mobile Devices and Broadband Internet Access in Developing Countries - With the increase of mobile devices and internet access in developing countries, cloud computing has had a boost of interest. The technologies are closely related and often integrated – which pushes the development of cloud adoption frameworks into more infrastructure.
- Demand for Digital Services in Developing Countries – Service delivery in developing countries can be challenging to address. Fortunately, with the help of innovative technologies, services can be digitized and made easier. Cloud adoption facilitates this transition and can be used to help developing countries provide efficient, effective, and secure services.
- Need for Agile and Scalable Businesses in Developing Countries – Cloud-based solutions also offer businesses in developing countries a certain amount of flexibility, scalability, and agility. This is great for companies looking to expand and enter global markets. Cloud adoption allows businesses to adjust resources as needed.
- Availability of Affordable Cloud Computing Services in Developing Countries – Cloud adoption is also a highly affordable infrastructure. For most developing countries, technology is too expensive to invest in, however, cloud adoption is easily accessible and affordable – making it an ideal framework for less wealthy areas.
- Government Support for Cloud Computing Adoption in Developing Countries – Governments are meant to encourage the best innovative technologies for their people. In developing countries, cloud adoption has been widely used and recommended by governments because of its efficiency, affordability, and security.
While these trends are driving the need for cloud adoption in most developing countries, several hurdles must be crossed before cloud adoption can take place. Let’s break down some of these challenges in cloud adoption for most developing countries.
Challenges for Cloud Adoption in Developing Countries
Adopting cloud frameworks can streamline several sectors for many developing countries. Unfortunately, cloud adoption in these areas can also be a daunting process and transition. We take a look at some of the main challenges for cloud adoption in developing countries:
- Lack of funding or capital to drive cloud adoption.
- Lack of education on cloud adoption and how it can be used to improve service delivery, processing, and data security.
- A shortage of trained cloud computing professionals to implement a cloud adoption framework.
- Data regulations that prevent the analysis done by cloud-based solutions.
- Public concern about data safety and privacy.
- Limited access to reliable and affordable broadband internet.
While these are all serious challenges to overcome, cloud adoption needs to be embraced in developing countries and globally to usher in a new age of technological innovation and data security.
Cloud Adoption for the Future
Cloud adoption can be a daunting aspect for most, however, the world is quickly changing and transforming perceptions about the cloud. Globally, cloud infrastructure could help to connect us more efficiently while ensuring streamlined performance across every business sector. From developing countries to developed countries, the cloud can benefit everyone.
Companies looking to invest in cloud computing for their business need to act now and start their cloud adoption journey today. Contact Sangfor for cloud computing and cybersecurity platforms that can elevate your company, enhance your security, and ensure the best performance.
For more information on Sangfor’s cybersecurity and cloud computing solutions, visit www.sangfor.com.
