One in Three Cloud Migrations in Malaysia and Singapore Fail to Meet Expectations Because Organisations Do Not Make Cloud Part of Their Core Strategy – First Unisys Cloud Success Barometer™
South East Asian organisations that integrate cloud into broader business transformation strategy are more than twice as likely to succeed with cloud migration compared to those who do not
KUALA LUMPUR, Malaysia, 14 November 2019 – Almost one third of Malaysian (27%) and Singapore (32%) organisations say they have failed to realise notable benefits from cloud computing, largely because they have not integrated their migration plan into their broader business transformation strategy, according to a new study by Unisys Corporation (UIS).
The first Unisys Cloud Success Barometer™ study explores the impact and importance of cloud by surveying 1,000 senior IT and business leaders in 13 countries around the world, including 90 in Malaysia and Singapore. Other key findings include:
- 70% of organisations in Singapore and Malaysia say their organisational effectiveness has greatly or moderately improved for the better due to cloud computing;
- Asia Pacific organisations for which cloud is a core part of their business strategy are 2.5 times more likely (80%) to say organisational effectiveness had changed for the better, compared to only 29% of those who said cloud was a minor part of their transformation;
- Of the 13 countries surveyed, Malaysian organisations report the second lowest use of legacy systems (11%) and public cloud (17%) but second highest use of on premise data centres (41%);
- Compared to Malaysia, Singapore's organisations are almost twice as likely use public cloud (31%) and almost half as likely to use on premise data centres (23%).
- Two thirds of Malaysian (68%) and Singaporean (64%) agree that data is more secure in the cloud than in-house; and security is cited as both the top benefit and greatest challenge for moving data, applications or processes to the cloud.
"These results show why cloud transformation is not just an IT issue, it's a business issue," said Leon Sayers, Regional Consulting Lead, Unisys Asia Pacific. "Nine in ten (92%) of Malaysian organisations that integrated cloud as a core part of their business strategy saw the greatest positive gains, compared to just 60% of those who did not. Rather than a 'lift and shift' approach, successful cloud implementations require the right framework in place at the outset, with continual innovation and updates over time."
The Future is Multi-Cloud
Despite nearly all respondents (94% in Malaysia and 97% in Singapore) saying they had migrated to the cloud to some degree, use of multi-cloud is still low (25% in Malaysia and 44% in Singapore) – in line with the global results.
However, Malaysian organisations using multi-cloud are more likely to see the cloud as being essential for security and staying competitive:
- All (100%) Malaysian multi–cloud users surveyed say that if they didn't move to the cloud they would be somewhat to extremely concerned about using legacy systems without the security to deal with today's hackers, compared to 76% of Malaysian organisations surveyed;
- All (100%) Malaysian multi-cloud users surveyed say they are similarly concerned about being left behind as a technology laggard, outperformed by the competition and going out of business – compared to 59%, 62% and 65% respectively of all Malaysian organisations surveyed.
"A Multi-cloud strategy offers flexibility and choice, and recognises that not all data and applications need to be treated in the same way," explained Sayers. "A multi-cloud strategy helps organisations gain greater sovereignty over their data, spread their risk in case of downtime and increase the negotiating leverage to shop rates for different service needs from multiple vendors."
2019 Unisys Cloud Success Barometer: Looking at How Cloud is Meeting Expectations
The first Unisys Cloud Success Barometer surveyed more than 1,000 senior business and IT leaders across 13 countries in August and September 2019. Unisys gauged their attitudes on a wide range of cloud performance issues and created a barometer based on their feedback. The barometer score is calculated on a scale from zero to 100, based on how well cloud expectations are being met in six areas across business, competitive and IT benefits.
The Unisys Cloud Success Barometer score for Malaysia is 48, only slightly lower than the global average of 49.
The top drivers for Malaysian organisations moving to the cloud are the desire for better IT and data security (65%), being agile (54%) and a competitive advantage (50%). Expectations for their cloud implementations were exceeded for driving innovation (88%), enabling a faster time to market (85%), being agile to match demand (85%) and better IT and data security (81%).
However, the benefits delivered fell short in the areas of reducing costs (47 said expectations were somewhat met/below expectation), increasing revenue (44%) and reducing headcount (43%).
Navigating the Path to Success
The survey identified several factors that improved the likelihood of a successful migration. Globally, organisations that used third-party support to help with their cloud adoption were 26% more likely to realise organisational improvements for the better compared to organisations that handled cloud migration in-house. In Singapore the results are even higher with organisations using third parties almost three times as likely to see improvements. Whereas in Malaysia, organisations using third parties were 11% less likely to see improvements.
"While no cloud migration is the same, there are several core building blocks that many successful migrations share. First, organisations must do a thorough planning assessment that looks at anticipated ROI, staff training needs, security risks and identifies where outside expertise is needed. Next, they need to establish a continuous integration/continuous delivery framework leveraging microservices, containers and DevOps. Lastly, having a cloud management portal is critical to providing end-to-end visibility for better monitoring and performance," said Sayers.
For more results and information on the 2019 Unisys Cloud Success Barometer and to download a report on the survey results, visit www.unisys.com/cloudbarometer.
Methodology
The Unisys Cloud Success Barometer online survey of 728 IT leaders and 317 senior business leaders was conducted across 13 countries: Australia, Belgium, Brazil, Chile, Colombia, Germany, Malaysia, Mexico, Netherlands, New Zealand, Singapore, UK and USA during August-September 2019. The 90 Malaysian and Singaporean responses are from 56 IT leaders and 34 business leaders.
About Unisys
Unisys is a global information technology company that builds high-performance, security-centric solutions for the most demanding businesses and governments. Unisys offerings include security software and services; digital transformation and workplace services; industry applications and services; and innovative software operating environments for high-intensity enterprise computing. For more information on how Unisys builds better outcomes securely for its clients across the Government, Financial Services and Commercial markets, visit www.unisys.com.my. Follow Unisys on Twitter and LinkedIn.
Contacts:
Claire Hosegood, Unisys APAC,
+61 411 253 663, claire.hosegood@au.unisys.com
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