In 2020, the Cloud computing market was expected to experience a breakthrough, especially when the COVID-19 has provoked technological investment among businesses.
Therefore, the Cloud computing market has been blooming and attaining considerable successes globally, including Vietnam.
In Southeast Asia, the market revenue is estimated to reach $40 billion in 2025, in which Vietnam has the fastest economic growth rate related to the use of Cloud computing 64.4% from 2010 to 2016.
In the near future, the market is expected to further grow as most businesses, organizations, and associations in Vietnam have acquired fundamental knowledge about Cloud computing.
As a result, the exquisite growth of the cloud market in 2020 was predicted with firm data. First, there are more than 72% participants supported the deployment of Cloud computing, in which:
- 25% of the market is in the research phase; they search information about the solution but do not have any intention on using Cloud.
- 14% of the market claims to implement Cloud computing after the exploratory phase.
- 39% of the market are on the track to plan for development and long-term implementation of Cloud computing solutions in the next several years.
- 3% indicated no interest in initiating any Cloud computing projects.
The challenges of the Cloud Computing market in 2020
Despite the positive growth, there are certain external elements affecting the market:
- The infrastructure is not well-constructed and synchronous enough to operate the system smoothly.
- A considerable number of businesses and customers do not trust Cloud computing vendors and services.
- Information security is still a substantial problem in our country.
- The expense for use and investment are relatively high compared to the size of the company as well as the market itself.
- There is no competitive advantage over foreign Cloud computing suppliers.
- The link between providers is weak.
- There is a lack of creativity, attractiveness, and stimulation for enterprises.
In 2018, Vietnam was numbered #14 in the chart ranking countries which had the highest number of enterprises using Cloud computing services with 41/100 points. In the period between 2010 and 2016, Vietnam achieved the record with the highest growth rate of 64.4% among ASEAN countries (the average growth rate of ASEAN is 49.5%).
Nevertheless, such an impressive rate did not generate adequate revenue for the market. Enterprises are only willing to spend an average of $1.7/year/person for Cloud services (data from 2016).
On the other hand, the willingness to pay in Singapore was 107 times higher than in our country. Malaysia, Thailand, and Philippines are 6.5, 2.4, and 1.3 times higher respectively.
The good news is, more and more businesses are choosing Cloud computing as they are realizing its indisputable advantages. According to the report, enterprises and organizations can save up to 40% of investment expenses, reduce project length by 1 to 1.5 months, and eliminate costs of human resources, warranty, and system maintenance, and so on with Cloud computing.
Advantages of the Cloud Computing market in 2020
In 2020, the Vietnamese market for Cloud computing did not have the incentives to scale up; however, with the current market shift to AI technology, it promises a phenomenal advancement for Cloud computing services.
There are 3 main Cloud service providers in 2020:
- Foreign providers
- Large-scaled enterprises that initiate Cloud computing project on their own
- Small businesses, startups that provide Cloud services
Cloud service vendors such as Google and Microsoft are more competent in related projects because of the abundant funds as well as expertise and experience for businesses in Vietnam. However, domestic providers were gaining more advantages in the Cloud market in 2020.
Advantage of the bandwidth
Using domestic bandwidth will cost much less than using international servers when transferring data on the Cloud infrastructure.
Domestic Cloud service vendors can help save around 50% expenses for customers as the ratio of server/headcount is higher, leading to a cheaper and more stable connection. In addition, customers could receive intensive and even instantaneous support.
The cost advantage is more apparent as businesses do not need to install any software or hardware. The increasing demand for remote working also contributes to motivating the market growth in this year.
Post-Covid, businesses are incrementally using the Cloud platform for effective database storage and use. The fundamental role of service vendors is to help users easily use Cloud services and provide prompt support.
Advantage to integrate Cloud Computing to AI
The merger of AI technology and Cloud computing is a smart move of tech firms worldwide. International experts indicate that the Cloud computing market in 2020 in Vietnam was in the early period to initiate Artificial Intelligence (AI). This will significantly encourage Vietnam to develop, modify, and apply AI in the future.
Therefore, it is crucial to recognize and implement projects to integrate AI and Cloud in order to build competencies for Vietnam in the global market. In spite of the small size, this early step and planning in 2020 will provoke the market growth to a great extent.
The current Cloud market in Vietnam has had the ability to calculate, receive, and analyze data. In other words, it is well-prepared for the bloom.
In the next 2-3 years, the Cloud computing and Database market in Vietnam will become much more exciting and contribute to the digital transformation of enterprises specifically and the nation generally.
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