Prepared for Anh | Delivered November 27, 2019
Market for cloud services in Malaysia
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To find out specific industry-segments in the Malaysian market that could benefit from cloud adoption, and possible barriers to adopting cloud.
Information and Communication Technology Sector
In its aim to become a
developed nation by 2025
, the Government of Malaysia has identified key digital areas to drive the ICT sector (Information and communications technology) that includes
, internet of things (IoT), data analytics, cybersecurity, data center, e-commerce and artificial Intelligence (AI) as the main drivers for
Industry 4.0 and Smart City developmen
In Malaysia, Cloud computing is experiencing investment in
data centers and ICT infrastructure
As far as the specific sub-segments are are concerned,
has the highest adoption in cloud computing, followed by Infrastructure-as-a-service (IaaS) and Platform-as-a-Service (PaaS).
remain the dominant form of deployment by enterprises in Malaysia and this model has been identified by service providers as a key growth market.
According to the Malaysia financial sector cloud adoption report by the Cloud Security Alliance (CSA), 64.7% of the country’s
financial services companies
said they are developing a cloud strategy, while 17.6% already have one. The remaining 17.6% have a strict no-cloud policy.
Implementation of cloud-based services and resources by the Malaysian
falls under moderate level.
The cloud computing features that are compatible with all aspects of
IT services in the Malaysian public sector
lead to a higher level of implementation among the agencies.
Most agencies in the
Malaysian public sector
also found that cloud computing services are completely compatible with the current IT system in their department, thus influencing cloud computing implementation.
23.5% of surveyed respondents in the Malaysian Finance sector mentioned that no
cloud service data security and compliance regulations
have been established in their organisations.
Just 11.7% of organisations have some form of cloud service
data security and compliance management
lack of security leadership
also appears to be a key issue in Malaysia’s financial sector, with 52.9% of respondents citing it as the top barrier to cloud adoption in their organisations.
Perceived risks were hypothesized to have a negative influence or
on the implementation of cloud-based services in the Malaysian public sector.
A significant support was found for the relationship between
perceived risks as a barrier factor
on the implementation of cloud computing services and resources by the Malaysian public sector.
It was also argued that the agencies believed that the
risks of cloud computing
may affect their implementation of the cloud environment, especially the public cloud, agency’s data required a more secure environment for storage and retrieval.