APAC firms adopting homemade tech products for local knowledge

Some 65% of businesses in the region have adopted at least one Asian-made technology product, with another 72% describing vendors from the region as better providers for their understanding of the 'Asian mindset', reveals Alibaba Cloud survey.
Written by Eileen Yu, Senior Contributing Editor on

Organisations in the Asia-Pacific believe technology providers from the region can provide better products and services due to their intimate knowledge of "the Asian mindset". In fact, 65% already have adopted at least one technology product from an Asian provider.

Another 73% expressed confidence in the region's ability to innovate in the technology space, according to a study released Wednesday by Alibaba Cloud, which polled 1,000 respondents in Singapore, Hong Kong, India, Indonesia, Malaysia, and the Philippines. 

Conducted by YouGov, the survey revealed that 72% perceived Asian technology providers to deliver better products because they had a better grasp of the Asian mindset. Amongst those that have implemented Asian-made technology products, 74% in Hong Kong had picked up local service offerings.

Respondents were also probed about their thoughts on cloud products, and 85% believed cloud-native offerings had helped them deal with the impact of the global pandemic. This included 64% in Indonesia, where these businesses perceived hybrid cloud applications to be critical to their survival. Across the region, 69% said a hybrid cloud strategy facilitated their disaster recovery and business continuity initiatives.

The COVID-19 pandemic also fuelled worries about security, with 58% prioritising a cloud vendor's security credentials as the most important criteria. Before the virus spread, Asian businesses saw the need to integrate existing IT infrastructures as their primary concern when adopting cloud applications. 

Alibaba Cloud Intelligence's president for international business Selina Yuan said: "It is very encouraging to see the high level of confidence in Asian innovation among businesses in the region. With digitalisation so strong a trend, especially on the back of the pandemic, we believe there will be many new opportunities to build on the strong perception of the region's cloud capabilities."

In touting its own service offerings, Alibaba Cloud had played up its Asian heritage and investment in the region as a key competitive advantage over its US competitors. It also underscored the fact that its international headquarters was based in Singapore.

The Hangzhou-based vendor currently operates 67 availability zones across 22 cloud regions, of which, the majority are located in China and across Asia-Pacific, including Singapore, Indonesia, Japan, India, and Australia. 

Alibaba last December tweaked its hybrid cloud strategy to focus on "compatibility, security, compliance, scalability, and reliability", introducing a hybrid cloud partner programme as well as a suite of updated product offerings.

In its latest quarterly earnings, ended September 30 last year, its cloud revenues climbed year-on-year 60% to hit $2.19 billion. In August, it launched three hyperscale data centres across China as part of a three-year $28 billion cloud investment, with the new facilities running on Alibaba's own technologies, including its Apsara Distributed OS, Hanguang 800 AI chip, and X-dragon architecture.


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