While cloud migration remains a central component of enterprise digital transformations, the emphasis is now undoubtedly on hybrid cloud. As digitalization reaches more parts of the business, enterprise IT environments have become more complex, often involving multiple cloud services. They are also encompassing private clouds to meet regulatory, security, and performance requirements.

At Digital Realty, we see evidence of these trends every day as we work with our clients in South Korea and elsewhere in Asia Pacific (APAC). So, to quantify the trends, we commissioned IDC to produce an InfoBrief report on the shift to hybrid cloud in APAC.

The report, which is based on extensive end-user surveys, reveals that 74 percent of South Korean organizations are expected to have adopted a hybrid or multi-cloud environment by the end of 2023 — up from 66 percent two years ago.

Key Trends and Investments

IDC’s InfoBrief points out that South Korean enterprises have traditionally favored on-premises environments, but it highlights how that is changing. The COVID-19 pandemic and the government’s Korean New Deal 2.0 initiative have accelerated digitalization and cloud adoption.

IDC predicts that South Korea’s cloud spending will increase at an 11 percent compound annual growth rate through to 2026. This shift opens up opportunities and presents challenges for enterprises. As a result, South Korean organizations are primarily investing in multi-cloud integration, data management, and modernization of core business applications.

Many enterprises are investing in advanced hybrid environments, where multiple clouds can run a single application seamlessly or are managed with a common toolset. Seamless interoperability and connectivity between highly distributed workloads are therefore crucial. To this end, 84 percent of South Korean organizations plan to invest more in cloud connectivity.

The report also quantifies other IT infrastructure trends, including the shift from core to edge workloads and increasing digital sovereignty requirements.

Opportunities and Recommendations

South Korea offers enormous opportunities for enterprises. It has one of the world’s fastest-growing developed economies, thriving high-tech industries, and a highly connected population.

To unlock these opportunities, leading enterprises are modernizing their approach to IT and embracing hybrid cloud. Nevertheless, organizations in or expanding into South Korea face significant digital infrastructure challenges. The IDC InfoBrief makes several recommendations to address these challenges, from adopting automation systems to building strategic relationships with service providers.

As the final recommendation says, “Organizations must encompass a wider partner ecosystem, including multiple cloud vendors, cloud hosting, and colocation providers within their hybrid cloud supply chain.

“Evaluation of vendors should encompass security, integration, connectivity, management, and specialized capabilities rather than solely focusing on cost,” IDC adds.

Learn more about South Korea’s and APAC’s transition to hybrid cloud by downloading the IDC InfoBrief Unlocking Innovation and Efficiency: Harnessing the Power of Hybrid Cloud and Data.

Download the report

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