Telcos Aggressively Entering The IaaS Market In Asia Pacific

Demand for infrastructure-as-a-service (IaaS) continues to grow strongly in Asia Pacific. In fact, our Forrsights Budgets and Priorities Tracker Survey, Q2 2012 found that 43% of Asia Pacific organizations had prioritized IaaS as an IT strategy, up from 33% in 2011.

This presents an opportunity for both established cloud service providers like Amazon Web Services (AWS) and Rackspace and new entrants such as telcos to offer IaaS to enterprises in the region.

While telcos have not typically been an obvious choice for enterprises considering IaaS in the region, they have introduced capabilities over the past 12 months that compete head-on with AWS and Rackspace — from entry-level “rent a virtual server” offerings to fully hosted and managed IaaS. As outlined in my “Telcos Are Lining Up Broad IaaS Offerings For Asia Pacific Enterprises” report, players in this space include AT&T, BT, NTT Communications, Orange Business Services (OBS), SingTel, Tata Communications, Telstra, and Verizon.

What does this mean for sourcing and vendor management professionals?

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