• Evolutionary predictions are relatively easy; revolutionary predictions for cataclysmic, market-changing events are nearly impossible to predict.
• Skepticism, value-focus, and clear identification of what is evolutionary, even when it’s dressed up as revolutionary, is key to effective technology decision-making.
Historically, humanity’s ability to see the end shape of things is spectacularly bad. Smart, monied people such as Thomas Watson, the storied CEO of IBM, in 1943 said there would be a world market for maybe five computers. The inventor of Ethernet, Robert Metcalfe, predicted that the internet itself would “supernova” and collapse in 1996. Those are egregious examples of being spectacularly wrong, but it makes sense to look at the perspective of those predictions in the light of the conditions and observations they could make at the time.
• Hyperscalers are making a move in ASEAN, expanding their footprints in key markets.
• Telcos will need to redefine their product and go-to-market strategies in the cloud, edge, and enterprise 5G.
Hyperscalers Are Making a Move in ASEAN Leading hyperscalers are aggressively expanding their presence globally, with ASEAN being one of the key markets (for more, please see ”Hyperscalers Making a Move in ASEAN,” September 27, 2022). From Singapore, hyperscalers expanded to Indonesia and are now further expanding their footprints in the other key ASEAN countries such as Malaysia, Thailand, and the Philippines. Amazon Web Services (AWS) announced its Local Zones in the Philippines, Thailand, and Vietnam; Google Cloud is building new regions in Malaysia and Thailand; Alibaba Cloud opened new regions in the Philippines, and Thailand and has the widest presence in ASEAN; and Microsoft is planning to open new data centers in Indonesia and Malaysia. The move was driven by the growing demand for cloud services in the region accelerated by the pandemic. ”GlobalData Global IT Customer Insight 2022” shows that 75% of 166 ASEAN enterprises have increased their spending on cloud in 2022 while ”GlobalData Market Analyzer” (last viewed in September 2022) estimates that the cloud market in the region will double in the next five years from $16.3 billion in 2021 to $33.8 billion in 2026.
• Security heads continue to be challenged in implementing effective cybersecurity strategies and continue to want positive and measurable business outcomes with their cybersecurity investments.
• To stay relevant and drive growth, providers will have to reposition sales and marketing efforts in front of customers, emphasizing value-based selling addressing business challenges.
The Challenged Chief Information Security Officer (CISO), and Vendors Riding on the Current Cybersecurity Growth Wave It is clear that cybersecurity is high on the agenda for businesses of all sizes ranging from small-to-medium enterprises to multinational corporates and government establishments. In recent years, the public has seen exponential growth in cyberattacks across a range of verticals covering finance, government, and utilities to name a few. On the one hand, this has resulted in healthy revenue growth in the cybersecurity segment, with stock valuations and revenues on the rise alongside advances in technology.
• Akamai has identified almost 13 million malicious domains per month in 2022, roughly 20% of all newly observed domains (NODs) that access the provider’s content delivery network (CDN).
• While it remains to be seen how threat actors will operationalize these, it is indicative of looming state-backed cyberwarfare attacks.
Security, cloud, and CDN provider Akamai offers some insights into a looming cyber threat. In a report published at the end of September 2022, Akamai says it has seen a significant uptick in the number of malicious NODs on its CDN. The company says NOD-based threat detection gives the company a means to assess the “long tail” of DNS queries to identify new threats in a very early phase. Akamai defines a NOD as a domain name queried for the first time within a 60-day window.
• Alibaba Cloud has products to extend its services from major cloud data centers to customer premises and edge locations.
• The company needs to make these products more widely available outside of China and work with communications service providers (CSPs) to deliver multi-access edge computing (MEC).
As enterprises look to leverage cloud services to embed digital solutions (e.g., data analytics, AI/ML, IoT, etc.) in their business operations, there are specific requirements for their IT infrastructure. While public cloud infrastructure-as-a-service (IaaS) offers agility and cost-effectiveness, there are challenges around the availability of a cloud region, network latency issues, and security/compliance requirements. Moreover, applications are moving from centralized locations (i.e., cloud or data centers) to a more distributed architecture, giving rise to the demand for edge computing. Hyperscalers have been developing alternatives to host their cloud services, and Alibaba Cloud – as a key player – has also been helping customers to bring cloud services closer to where the data is generated and processed.