Frost & Sullivan: Cloud Computing Witnesses Growing Traction in Malaysian Market

Malaysian organizations are looking towards Cloud Computing as a cost effective solution to gain latest technologies and improve business demand responsiveness.
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July 13, 2011 - PRLog -- Kuala Lumpur, Malaysia – Cloud computing is becoming an integral part of organizational IT strategy in the Malaysian Market. According to a recent Frost & Sullivan end-user study, 34% of organizations stated that Cloud Computing is their number one priority in the current fiscal year. One-third of organizations in Malaysia are using some form of cloud computing.

The end-user study, State of Cloud Computing in Malaysia 2011, finds that IT managers believe that cloud computing provides them with cost effective means to gain access to the latest technologies and improve responsiveness to business demand. Growing mobility is another factor that is driving increasing interest in adoption of Cloud computing.

“About 68% of enterprises have experienced or expect costs savings through the adoption of Cloud services,” says Mayank Kapoor, Research Analyst for Frost & Sullivan’s ICT team. “However, the concerns around security, privacy and sovereignty of data continue to hamper adoption, especially for Public Clouds.”

Cloud services such as Software-as-a-Service (SaaS) continue to see high adoption, with Infrastructure-as-a-Service (IaaS) witnessing increasing interest.

“SaaS offers a number benefits over on-premise software such as lower upfront costs, standardization, ease of upgrade, ubiquitous access and seamless integration with in-house infrastructure leading to high adoption by Cloud users; 91% of cloud users use SaaS,” says Mr. Kapoor.

However, enterprises will continue to remain cautious about putting custom applications, sensitive storage data and production environments on the cloud. Also, Cloud Bursting is gaining interest in the market as enterprises look to scale up infrastructure requirements from the Cloud to complement their own infrastructure.

Malaysian enterprises are looking for low and flexible price points and high security and privacy guarantees from service providers before making substantial bets on the Cloud model. According to the study, Microsoft, Google and IBM are the three service providers that enjoy the highest mindshare among Malaysian enterprises in both the Public and Private Cloud vendor categories.

“It is essential for service providers to develop trust among the local enterprises by developing solutions catered to their business needs, local currency based pricing, local support teams and partnering with strong local brands/telcos,” says Mr. Kapoor.

He adds, “The Malaysian Cloud market is on a fast growth curve and an increasing number of enterprises will be making it their #1 priority in the coming years.”

If you are interested in more information on this study, please send an e-mail to Donna Jeremiah, Corporate Communications, at, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit


Donna Jeremiah
Corporate Communications – Asia Pacific
P: +603 6204 5832
F: +603 6201 7402

Carrie Low
Corporate Communications – Asia Pacific
P: +603 6204 5910
F: +603 6201 7402

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Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's research and consulting services empower clients to generate, evaluate, and implement effective growth strategies.
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Tags:Cloud Computing, Malaysia, Low-cost, Flexible, Business, Adoption, Saas, Iaas, Security, Enterprise, Infrastructure
Industry:Technology, Telecom, Business
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