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Asia Leads the World in Cloud Readiness Index 2016: Asia Cloud Computing Association

PR Newswire Asia Thursday, 31 March 2016
But study shows growing cloud divide between APAC countries

SINGAPORE, March 31, 2016 /PRNewswire/ -- Asian countries top the new Cloud Readiness Index (CRI) 2016 released by the Asia Cloud Computing Association (ACCA). The CRI places Hong Kong, Singapore, New Zealand and Australia above markets such as Germany, the United Kingdom (UK) and the United States (US), showing that Asia economies are indeed leading the world in cloud readiness. This is also the first time that the 14-market Asia Pacific-focused study also includes a sample of six non-Asian markets for comparative analysis.

*Cloud Readiness Index 2016*

*Rank, Country/Region*

CRI#01 International Connectivity

CRI#02 Broadband Quality

CRI#03 Power Grid, Green Policy, and Sustainability

CRI#04 Data Centre Risk

CRI#05 Cybersecurity

CRI#06 Privacy

CRI#07 Government Regulatory Environment and Usage

CRI#08 Intellectual Property Protection

CRI#09 Business Sophistication

CRI#10 Freedom of Information

*TOTAL CRI 2016 SCORE*

*Rank Change from CRI 2014*

#1 Hong Kong

8.1

9.1

6.7

8.0

6.2

9.5

7.2

8.6

7.4

7.2

*78.1*

*+4*

#2 Singapore

6.4

9.4

6.5

7.8

6.8

9.0

8.6

8.9

7.3

6.0

*76.7*

*+2*

#3 New Zealand

4.6

8.2

7.6

6.8

7.4

9.0

8.1

8.7

6.9

7.2

*74.4*

*-1*

#4 Australia

4.3

8.0

6.6

6.3

7.6

9.5

7.4

8.3

6.7

8.3

*73.2*

*-1*

#5 Japan

3.9

8.9

6.7

5.9

7.1

8.0

7.8

8.7

8.3

7.8

*73.0*

*-4*

#6 Taiwan

4.1

8.8

6.7

6.4

7.0

9.5

6.7

7.4

7.1

7.2

*71.1*

*+1*

#7 South Korea

3.8

9.0

6.3

6.2

7.1

9.0

7.0

6.0

6.9

6.7

*68.0*

*-1*

#8 Malaysia

3.3

7.6

5.4

5.9

7.6

8.0

7.4

7.7

7.6

5.8

*66.3*

*-*

#9 Philippines

3.3

5.5

6.0

3.5

3.5

7.5

5.5

5.6

6.1

7.3

*53.8*

*+1*

#10 Thailand

3.8

8.6

6.0

5.2

4.1

5.0

5.1

4.6

6.3

3.8

*52.6*

*-1*

#11 Indonesia

1.8

6.3

5.4

2.7

4.7

6.0

5.6

6.1

6.1

5.8

*50.6*

*+1*

#12 India

1.7

5.6

5.1

1.9

7.1

4.5

5.5

6.0

6.0

5.8

*49.1*

*+1*

#13 China

1.6

6.6

5.3

2.5

4.4

5.5

6.2

5.7

6.1

1.3

*45.4*

*-2*

#14 Vietnam

3.0

6.7

5.4

2.6

3.2

5.0

5.4

5.1

5.1

2.4

*44.0*

*-*












Comparison (and hypothetical rank)




Brazil (#8)

3.8

6.8

7.0

4.4

7.1

5.0

5.2

4.7

6.1

7.0

*57.1*



Germany (#3)

5.0

8.4

7.1

6.9

7.1

8.0

7.3

8.1

8.1

8.3

*74.3*



South Africa (#8)

5.0

6.0

5.8

2.7

3.8

3.5

6.0

7.7

6.3

7.4

*54.3*



UAE (#8)

3.8

8.3

4.9

6.7

3.5

3.5

8.1

7.9

7.6

3.3

*57.5*



UK (#3)

6.1

8.5

7.2

6.6

7.1

8.5

7.8

8.6

7.9

7.6

*75.7*



USA (#5)

4.3

8.4

6.6

5.8

8.2

6.5

7.4

8.3

8.0

8.1

*71.6*



All values to 1 decimal place

*Source: Asia Cloud Computing Association*


The study, which measures the cloud readiness of economies along 10 parameters, sees some upsets in the Asia Pacific rankings. Hong Kong claims the top position, climbing four spots and toppling two-time leading country Japan, which dropped four places to #5. Singapore climbed two ranks into second place, while Taiwan (#6), Philippines (#9), Indonesia (#11) and India (#12) also climbed the ranks. Countries that fell in the rankings include New Zealand (#3), Australia (#4), South Korea (#7), Thailand (#10), and mainland China (#13). Holding steady are Malaysia (#8) and Vietnam (#14).

When ranked against their APAC counterparts, Germany and the UK ranked 3^rd, the US 5^th; and Brazil, South Africa and the United Arab Emirates (UAE) tied at 8^th.

"The results put Asia in a very strong position to lead the next wave of global innovation and technology," says Bernie Trudel, Chairman of the ACCA. "Asia Pacific is poised to outperform as they lead the world into the digital age, driven by cloud computing technologies."

"Cloud has mainstreamed as a technology," says Lim May-Ann, Executive Director of the ACCA. "Public sector adoption of cloud is underway, and we see that multiple gCloud accreditation schemes is the next challenge which businesses will face with governments."

"The next phase for markets is to put in place strong forward-looking policies which enable international data transfers, and address cybersecurity and privacy concerns from consumers and business."

Despite the positive trend, there are signs of an emerging intra-regional digital divide. This is the fourth year that the ACCA has published the CRI; comparing the cloud readiness of 14 economies over time suggests that the gap in cloud readiness may be becoming entrenched. The gap in cloud readiness between the top performers -- from Hong Kong to Malaysia -- and the bottom six -- from Philippines to Vietnam -- is widening, even as the cloud computing becomes a mainstream technology across the region. The top performers are now reaping the benefits of multi-year national digitisation plans, including plans for gCloud, broadband and other connectivity rollouts.

Visit http://asiacloudcomputing.org/research/cri2016 to download the full report.

*OPTIONAL COUNTRY/REGION - SPECIFIC STORY ANGLES FOR EDITORS*

Below are some suggested headlines and story angles for selected economies:

*Australia losing edge as low risk location for data centres*

*Study reveals tax rates and labour efficiency to blame*

Australia has lost its edge as a low risk location for data centres, as the country slipped on the data centre risk parameter in the Cloud Readiness Index (CRI) 2016. The fourth iteration of the ACCA's CRI shows that while economic stability, world-leading freedom of information and cybersecurity continue to make Australia an efficient and low-risk market for data centres and cloud services, Australia has struggled to keep pace with its peers in Asia Pacific. Broadband quality is below the average for the region, and the business environment and changes to data retention laws and data localisation requirements contribute to a more risky outlook for Australian cloud services. The CRI measures 14 economies across Asia Pacific on ten parameters to indicate how prepared they are in adopting cloud computing. 

*Hong Kong leads APAC in cloud readiness*

*Jumps four spots to oust Japan from the top rank on Cloud Readiness Index 2016*

Hong Kong has established itself as a regional leader when it comes to cloud computing. The territory won the top slot on Asia Cloud Computing Association's Cloud Readiness Index (CRI) this year climbing four spots on the biennial rankings. According to the study addressing data privacy matters was the single most important factor in moving Hong Kong up the ranks. In 2014 it scored 6.8 on data privacy. This time Hong Kong succeeded in securing 9.5 on the same metrics. It also made significant improvements on international connectivity and data centre risk management. The CRI measures 14 economies across Asia Pacific on ten parameters to indicate how prepared they are in rolling out cloud computing.   

*Japan no longer the most cloud-ready market in Asia *

*APAC competitors do better at attracting cloud computing business*

For the first time in four years Japan is no longer the most attractive cloud computing market in the Asia Pacific region. This according to the Cloud Readiness Index (CRI) released by the Asia Cloud Computing Association (ACCA). The fourth iteration of the ACCA's CRI shows Japan has dropped four places since 2011 when it was first ranked as the most cloud ready market in the region. It held that position for the next two years but as rivals began catching up it became difficult for Japan to retain that position. According to the latest CRI Japan scores poorly on international connectivity and data centre risk when compared with Hong Kong, which now takes the top spot. However, Japan still outscores rivals on business sophistication and freedom of information. The CRI measures 14 economies across Asia Pacific on ten parameters to indicate how prepared they are in adopting cloud computing.  

*Malaysian business more cloud ready than Singapore*

*Study shows local businesses better posed to adopt digital tech *

Entrepreneurs in Malaysia are better posed to adopt cloud technology than any of their Asian counterparts, save for Japan. This according to the fourth iteration of the Cloud Readiness Index (CRI) 2016, released by the Asia Cloud Computing Association. Malaysia ranked higher (7.6) than Singapore (7.3) and Hong Kong (7.4) on two of ten key parameters of the Cloud Readiness Index (CRI) 2016 which indicates how prepared is a country in adopting cloud computing. Outranked only by Japan (8.3), Malaysia emerged as an undisputed leader in South East Asia when it came to business sophistication. Malaysian cloud companies benefit in particular from emerging industry clusters and with a range of local suppliers ready to play their part. It also beat Singapore on cybersecurity by a respectable margin. According to the study, Malaysia has the best cybersecurity measures in place in the region. It scored poorly on connectivity and data centre risk but showed improvement on eight of the ten parameters covered in the CRI, which measures 14 economies across Asia Pacific.  

*Cloud readiness: New Zealand cedes #2 spot to Singapore*

*New Zealand maintains lead on power and sustainability but **falls behind** in overall rankings*

New Zealand has slipped on the Cloud Readiness Index (CRI) 2016 to third place as Hong Kong topped the charts to emerge as the overall most cloud ready economy in Asia, followed by Singapore at number 2.  improved its scores to emerge as the second best place for data centres and cloud computing.  The fourth iteration of the Asia Cloud Computing Association (ACCA)'s CRI shows that although New Zealand remains a leader in Asia Pacific when it comes to infrastructural sustainability around power, water and green policies, it has been upstaged by more aggressive rivals such as Singapore and Hong Kong who have aggressively improved their positions as investor-friendly destinations for cloud computing.  After having moved up four places on the CRI in 2014 New Zealand slipped one spot this year. The CRI measures 14 economies across Asia Pacific on ten parameters to indicate how prepared they are in adopting cloud computing. 

*Philippines Cloud Readiness ranking improves again*

*Inadequate connectivity and exposure to natural disasters pose risk*

The Philippines has improved its ranking on the Asia Cloud Computing Association's (ACCA) Cloud Readiness Index (CRI) for the second consecutive time, overtaking Thailand to become the ninth most cloud-ready nation in Asia Pacific. The fourth iteration of the CRI measures 14 economies across Asia Pacific on ten parameters indicating how prepared each is in adopting out cloud computing. The Philippines did particularly well on freedom of information, coming third after Australia (#1) and Japan (#2). It also does reasonably well on addressing privacy -- especially when compared with BPO rival India. But the study also exposes the need for the country to close the gap with its peers on international connectivity if it seeks to improve its cloud business competitiveness. There it is tied with Malaysia but falls behind its other ASEAN peers - Singapore and Thailand. Vulnerability to hurricanes, earthquakes and other natural disasters make it a risky destination for data centres and that explains why the archipelago ranks poorly on the metrics of Data Centre Risk.

*Singapore moves up the Cloud Readiness rankings, takes #2 spot *

*Broadband quality, data privacy and pro-business regime helps it climb rank*

Singapore has jumped two places on the Asia Cloud Computing Association (ACCA)'s Cloud Readiness Index (CRI) 2016 to become the second most 'cloud ready' country in Asia Pacific.  The fourth iteration of the ACCA's CRI shows that sustained investments made in hard infrastructure such as cables, power and broadband combined with a far sighted and pro-business regulatory environment has made Singapore a preferred destination for cloud business and data centres. Compared with 2014 Singapore climbed on eight out of the ten parameters that indicate how prepared the city state was in rolling out cloud computing. It beat competition on the quality of broadband; regulatory environment and protection of intellectual property. The only area of concern is freedom of information where it has fallen behind. It scored 6.0 on this measure down from 8.6 in 2014. The CRI measures 14 economies across Asia Pacific on ten parameters to indicate how prepared they are in adopting cloud computing. 

*About the Asia Cloud Computing Association (ACCA)*

The ACCA is the apex industry association that represents stakeholders of the cloud computing ecosystem in Asia. Our mission is to accelerate the adoption of cloud computing through Asia Pacific by helping to create a trusted and compelling market environment, and a safe and consistent regulatory environment for cloud computing products and services. Through dialogue, training, and public education, the ACCA provides a vendor-neutral platform to discuss implementation and growth strategies, share ideas, and establish policies and best practices relating to cloud computing. Visit us at http://www.asiacloudcomputing.org, contact us at secretariat@asiacloudcomputing.org, connect with us on LinkedIn at http://is.gd/accacloud or on http://www.twitter.com/accacloud

*Contributing Authors/Interviews available with:*

Bernie Trudel, DC and Cloud CTO, Cisco Systems, Asia Pacific
Chairman of the Asia Cloud Computing Association
Bernie has been in the ICT industry for over 30 years. He is currently the Data Center and Cloud CTO at Cisco Asia Pacific, where he advises Enterprise and Service Provider organizations on building sustainable Data Center infrastructure and network architectures for hosting and delivering cloud services. In addition, Bernie represents Cisco in the Asia Cloud Computing Association, where he has been Chairman for the past three years.

Lim May-Ann, Executive Director
Asia Cloud Computing Association
May-Ann has over a decade of experience in development, tech policy and communications across the Asia Pacific, working with organisations on thought leadership, government relations and stakeholder outreach efforts. Through the ACCA, she has worked in multiple markets lobbying for the acceleration of ICT and cloud industries, and other Internet adoption policies.  She is also active in the Internet Society (ISOC). Based in Singapore, May-Ann also lectures on Internet and ICT Policy in the National University of Singapore (NUS).

*Press Contacts*

Contributing authors to the Cloud Readiness Index would be pleased to offer comments on the CRI report and/or the state of cloud computing in Asia Pacific. To set up interviews or for more information please contact:

1) Amit Jain amit@trpc.biz (+65) 8723 0492
2) Magnus Young magnus@trpc.biz (+65) 9723 0904
3) Lim May-Ann mayann@asiacloudcomputing.org (+65) 9847 1950
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