Spending on Cloud infrastructure services in the Asia Pacific region (excluding China) rose 35 percent to $8.7 billion in Q2 2022, Canalys said in its latest report.
Asia Pacific is accounting for 14 percent of worldwide cloud spend.
Amazon Web Services (AWS) and Microsoft Azure are the leaders in the Asia Pacific region’s cloud market.
Small and medium-sized business cloud spend is set to increase and will be a major driver of cloud market growth in the coming year. Channel partners, which provide the most reach into SMBs in the region, will be key to winning and retaining customers in the future. Most of the major cloud providers in APAC are investing in channel growth and recruitment.
Cloud partners play an important role in cloud adoption as they help remove barriers and lower the cost of entering new markets. Cloud provider marketplaces are in place to attract ISVs and drive cloud use, while distributor marketplaces support automation of cloud and SaaS delivery and help cloud vendors reach new partner types.
Amazon Web Services (AWS) is the #1 cloud service provider in Q2 2022, accounting for 32 percent of the market. Its indirect business is small compared with its direct business. Indirect business of AWS is growing at a much faster rate. AWS announced investments in APN Programs and Training Units (AWS certifications), to support its partners in the key areas of cultivating technical talent and ramping up sales.
Microsoft Azure has a 26 percent market share. Azure is focusing on the channel and has by far the most extensive reach in the SMB market. More than half of its APAC revenue comes from the channel. Microsoft plans to invest in the partner ecosystem to sustain its momentum with its new Cloud Partner Program.
Google Cloud has 9 percent of the APAC market. Google Cloud is extending its reach into distribution, signing a partnership with Ingram Micro in Southeast Asia this quarter to drive into SMB channels. Google has a vertical-led go-to-market strategy, targeting partners that can align with these plans. Google Cloud CEO Thomas Kurian has highlighted his commitment to reach 100 percent partner attachment in every Google Cloud deal.
Cloud providers such as Alibaba Cloud, Huawei Cloud and Tencent Cloud are looking to accelerate their expansion into Southeast Asia, launching new data center regions and winning large deals to grow their presence in the sub-region. Some plan to leverage channel as a key route to market.
“SMBs’ IT buying decisions are usually more reactive, rather than strategic or proactive,” said Canalys Analyst Sheena Wee. “Most may not have strong IT knowledge and capabilities internally, so there continues to be a strong reliance on channel partners to be trusted advisors for their IT decisions.”
