Indonesia has seen a significant advancement in their technological applications. Technology has played a substantial role in every aspect of life. From sending a message, ride-hailing service, to ordering food. The country has also seen a rise in the cloud computing market.
According to a research firm, GMI Research, Indonesia cloud computing market share would grow at solid double digit CAGR from 2024 to 2031. It would also reach revenue of over USD 5.4 billion throughout the forecast year.
The Benefits
Many industries have used the technology due to various advantages it offers.
- Reduce expenses
This technology allows companies to utilize less hardware which leads to reducing the cost for regular maintenance. Companies should only pay to the cloud services provider. The provider will be the one who handles server maintenance. Furthermore, the companies only have to pay for the resources that they actually use, which can reduce financial strain.
- Centralized data security
With centralized data security, this technology offers automated data backup which can significantly contribute to data loss prevention. This security measure also removes the need for human resources to back up the data both online and offline.
- Improve productivity and collaboration
Cloud services can enhance flexibility, reliability, and accessibility. This will eliminate the need to be tied up to a specific location or device. Therefore, employees can work and access data from anywhere and everywhere, which can improve productivity and collaboration.
What are the Major Drivers?
With its many benefits, this technology has also seen significant growth due to various drivers.
- The expanding digitalization in Indonesia
Indonesia has seen increased digitalization in the country over the past few years. This transformation is possible owing to the expansion of internet connectivity from big cities to rural and remote regions. There is also a growing number of smartphone users and an increased consumption of big data, which can further propel the growth of this market.
- The use of cloud-based technology
Post-covid, there has been a trend of remote working. To enhance efficiency, many companies utilize cloud-based services. Many businesses also use hybrid cloud to host their e-commerce website.
The Restraints
However, there are some restraints that can hinder the development of this market.
- The high investments
Even though many service providers offer pay-as-you-go subscription model, there are various hidden costs that can occur which ultimately increase the costs. In addition, unused resources—when the company forgets to turn off the services when there is no current use of it—can also drive the costs to go up.
- Security issues
Security and privacy can be the major issue in this market. Clouds can be vulnerable to any breaches, malware infection, and other potential harms. There are several security measures to prevent these risks, such as encryption, multi-factor and strong user authentication, choosing a reliable service provider, disaster recovery, and other measures.
- Lack of knowledge and expertise
This technology can offer a challenging and complex environment. Therefore, it needs proper knowledge and skillful expertise to handle and utilize the tools efficiently.
