NTT Communications’ software-defined capabilities, enhanced portfolio through integration with sister companies and its wide network and data center coverage has given the provider an edge to lead the telecom cloud market in Asia-Pacific (APAC), says GlobalData.
Cloud is a mature technology but the market landscape is evolving in APAC. While major web-scale players such as Amazon, Google, Microsoft and Alibaba are continuously expanding their portfolio and presence in the region, carriers are playing to their strengths by offering integrated network and cloud services to grab the growing market opportunity.
According to GlobalData’s report, ‘Competitive Landscape Assessment – Telco Cloud Services (Asia)’, NTT Communications is rated as the leader in telco cloud services in APAC with the highest overall score based on four main categories: cloud portfolio, data center footprints, software-defined infrastructure and supplemental services. This is followed closely by Telstra and Orange Business Services who have similar capabilities but are slightly behind with their footprints in the region. The other three leading providers in the region mentioned in the report (BT, CenturyLink and Singtel) still have some gaps in their regional presence and supplemental services compared to the top three.
Alfie Amir, Technology Analyst at GlobalData, says: “Cloud products offered by telcos are comparable in terms of technical capabilities and ecosystem partners. What differentiates NTT Communications from the rest is its wide footprint and presence in the region to address data residency and latency requirements, as well as its software-defined capabilities which offer better workload management and service orchestration. These advantages enable the provider to address the diverse needs of Asian enterprises. The integration with its sister companies also enables NTT Communications to enhance its system integration and service delivery capabilities, and therefore retain its lead in the market.”
However, other providers are catching up fast to close the gap. For example, Telstra partnered with Equinix for direct access to other facilities globally, while Orange Business Services (OBS) partnered with Huawei for expansion in the region, especially in China.
The initiatives by telco cloud providers to add software defined capabilities, expand their footprints and enhance service capabilities are in-line with enterprises’ digital transformation directions. Enterprises today are looking for cloud providers with extensive cloud portfolios, not just the traditional IaaS, PaaS, and SaaS, but also cloud-based IT services such as IoT platform, UCaaS, security and marketplace that offer various horizontal and vertical applications.
Amir concludes: “The APAC cloud market is still growing fast as the market emerges, while the competition is getting more intense driven by the web-scale players. Telcos need to continue to leverage their network strengths and at the same time, include latest technologies such as self-service tools, analytics and AI in their offerings to gain competitive advantage.”
4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.