Demand for Microsoft cloud services is growing rapidly in Singapore and Malaysia as enterprises are pressured to achieve more with fewer resources, according to a new research report published Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
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“Asian companies are exploring non-intrusive tools in Microsoft 365 for employee engagement”
The 2023 ISG Provider Lens Microsoft Cloud Ecosystem report for Singapore and Malaysia finds many organizations in the region are migrating to the Azure cloud and selectively implementing cloud-based Microsoft applications to become more productive and agile. Cybersecurity worries and business changes triggered by the COVID-19 pandemic are among the major drivers of these accelerating trends.
“Companies in this region are making bigger investments in digital transformation and expecting fast, measurable results,” said Deepraj Emmanuel, ISG director in Singapore. “The Microsoft ecosystem is enabling significant changes to many business operations.”
The wave of enterprise cloud adoption and migration that has been driven by pandemic effects is likely to grow as a result of new government policies in both Singapore and Malaysia to encourage digitalization, ISG says. Singapore is using its Government on Commercial Cloud 2.0 platform, in partnership with managed service providers, to enable faster and more secure digital services delivery. Malaysia has initiated the MyDIGITAL blueprint, which is designed to turn the country into a digitally driven, high-income nation.
Working with a growing number of service providers in the region, enterprises are modernizing applications, processes and employee and customer experiences by implementing Azure, Microsoft 365 — including Office 365 and the Dynamics 365 business application suite — and the Microsoft Power Platform development tool.
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Enterprises are using components of Microsoft 365, especially Teams and Viva, to keep employees connected as they begin to embrace hybrid work models, the report says. The pandemic showed employers in Singapore and Malaysia firsthand that their organizations could run both virtually and in offices, while lowering costs and increasing productivity. Dynamics 365 is enabling new omnichannel customer experiences with personalization powered by data capture, AI and ML.
“Asian companies are exploring non-intrusive tools in Microsoft 365 for employee engagement,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “This extends to cognitive virtual assistants that keep workers informed and carry out routine tasks.”
Amid rising concerns about ransomware attacks, providers in the region see a growing number of clients utilizing all the enhanced security features of the Microsoft 365 E5 license, ISG says. Many companies are looking to replace legacy voice systems with Teams Phone, taking advantage of available advanced threat protection.
The report also explores other Microsoft ecosystem trends in the region, including the growth of local service providers and companies’ increasing willingness to migrate business-critical applications such as SAP to Azure.
The 2023 ISG Provider Lens Microsoft Cloud Ecosystem report for Singapore and Malaysia evaluates the capabilities of 28 providers across five quadrants: Managed Services for Azure, Microsoft 365 Services, SAP on Azure Services, Dynamics 365 Services and Power Platform Services.
The report names Accenture & Avenade, DXC Technology, Kyndryl and NCS as Leaders in all five quadrants. It names TCS as a Leader in four quadrants and HCLTech as a Leader in three quadrants. Customer Capital Consulting, PwC and Softline are named as Leaders in two quadrants each, and Infosys and Tech Mahindra are named as Leaders in one quadrant each.
In addition, Capgemini and Fujitsu are named as Rising Stars — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. HCLTech is named a Rising Star in one quadrant.
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