As research for my upcoming report on cloud adoption among banks in Asia Pacific (AP), I’ve spent the past several months interviewing senior IT and business decision makers at banks and other financial institutions across the region. I’ve also met with banking regulators and spoken with cloud providers with a strong AP presence. Look for the full report early in the new year. In the meantime, I wanted to share some key findings.
Cloud adoption is among the top priorities for most banks in the region. In fact, contrary to popular belief, I’d categorize cloud adoption as nearly mainstream among banks in many parts of Asia Pacific. But adoption drivers vary based on the cloud approach. Private cloud initiatives, for instance, centered on data center transformation to drive improved operational efficiency and cost savings. Public cloud initiatives typically focus on expanding mobile banking capabilities and other customer-facing systems of engagement — the key to customer retention and overall growth.
Japan remains the second-largest tech market worldwide after the US and accounts for a massive 40% of total IT spending in Asia Pacific. Japanese companies devote most of their annual IT budget and staff — 70% to 80% — to maintaining existing back-end infrastructure and applications. But we expect this budget to shift rapidly over the next two to three years as local organizations embrace disruptive technology innovations in their efforts to succeed in the Age of the Customer.
Japan’s technology spending will show modest growth of 2% in 2014. Thanks to the positive economic impact of the government’s stimulus package and the depreciation of the yen, enterprise IT spending will likely grow by 3.7% in 2013. However, due to the consumption tax increase planned for April 2014 and the waning effects of the stimulus package, Forrester expects IT spending growth to slow to around 2% in 2014, driven by large application modernization projects in banking, manufacturing, and the public sector.
Consumer mobility in India and China is flowing into enterprises. Recent Forrester survey data shows that nearly three in five IT execs and technology decision-makers in these countries — 58% in India and 57% in China — plan to increase their spending on mobile software (including applications and middleware) in 2014.
India has leapfrogged Australia/New Zealand and now leads the Asia Pacific region in terms of expected mobile software spending growth. China has made the biggest move over the past year, jumping from eighth place to second.
We believe that the high growth in mobile software spending in India and China is primarily due to:
I regularly hear CIOs and IT suppliers discussing the “four pillars” of cloud, social, mobile, and big data as if they’re an end in themselves, creating plenty of buzz around all four. But really, they’re just a means to an end: Cloud, social, mobile, and big data are the tools we use to reach the ultimate goal of providing a great customer experience. Most CIOs in Australia do understand that digital disruption and customer obsession are the factors that are changing their world, and that the only way to succeed is to embrace this change.