ISP partnership key to APAC cloud services

With Internet connectivity playing key role in adoption of cloud and remote managed IT services in Asia-Pacific, tech vendors will find it necessary to work closer with Internet service providers, says analyst.
Written by Liau Yun Qing, Contributor

Cloud and remote managed IT services providers targeting small and midsize businesses (SMBs) in the Asia-Pacific region will find it increasingly necessary to work with Internet service providers to tap this market segment.

In a report released Monday, AMI-Partners noted that Internet infrastructure plays a key role in the adoption of cloud and remote IT services among smaller enterprises in the region, excluding Japan.

Daniel Sim, director of strategic engagements at AMI-Partners, said SMBs in countries that have strong connectivity and Internet infrastructure benefit most from software-as-a-service offerings and remote services. "Technology vendors offering cloud-based solutions and remote managed IT services will find it necessary to work with infrastructure service providers even more now than before, to explore go-to-market approaches in reaching out to these SMBs" Sim said in the report.

AMI-Partners said cloud and managed IT services providers should target SMBs in the "Wave II" category, where these businesses are on the lookout for technologies to connect their enterprise to enhance their competitiveness.

The research firm categorizes the adoption of IT into three "waves". In Wave I, enterprises are focused on building their basic infrastructure, and in Wave II their focus shifts to connectivity. In Wave III, enterprises look to extend their reach to customers and business partners.

According to AMI-Partners, the top 10 SMB IT spending this year will be on either cloud-based or remote managed services, and at least six of these are on technology related to enterprise connectivity. Video conferencing, SaaS productivity and remote managed PC services are ranked highest in the Top 10 list of IT spend, according to the report.

The research firm predicted that 2011 will see more SMBs continuing to understand how "as-a-service" will impact their business in the long run. These companies will also weigh the cost of investment in such services versus ownership, said the report.

SMB's mindset change also indicates they are looking at investments in "a more accountable and transparent manner", which makes them more cautious but also more informed.

AMI-Partners said: "Vendors need to balance their go-to-market approach with the right message, the right delivery model and the right solutions for the right target segment."

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