New Google Cloud Regions to Improve Access to Cloud Services in APAC

Source: Google Cloud

Google Cloud is expanding in Asia Pacific.

Google Cloud has just announced its plans to bring three new Google Cloud regions to APAC in a blog post. The locations will be in Malaysia, Thailand, and New Zealand. Once launched, the new regions will add to the 34 cloud regions currently operating globally. The announcement also followed recent expansions of Google Cloud in Berlin, Dammam, Doha, Mexico, Tel Aviv, and Turin.

The new cloud regions are part of the company’s ongoing commitment to supporting digital transformation across Asia Pacific. It continues to work on expanding connectivity by working with regional partners. These include local companies in the telecommunications industry.

Based on IDC data, total spending on cloud services in Asia Pacific (excluding Japan) will reach $282 billion by 2025. Business digital transformation is fueling the demand for cloud services. Most businesses today rely on digital tools for their operations, customer service, and marketing and sales. Since most digital tools are delivered via cloud services, cloud providers like Google Cloud need to expand to meet growing demand.

IDC Research Director for Cloud Services and Software Research, Daphne Chung, said that the new regions will help customers have more options when it comes to accessing cloud services. “The new Google Cloud regions will help to address organizations’ increasing needs in the area of digital sovereignty and enable more opportunities for digital transformation and innovation in Asia Pacific. With this announcement, Google Cloud is providing customers with more choices in accessing capabilities from local cloud regions while aiding their journeys to hybrid and multi-cloud environments.”

IaaS, PaaS, and SaaS Cloud Services

The risk of a global recession is causing consumers and businesses to cut back on IT spending. Based on the IDC study, “Worldwide Black Book: Live Edition,” IT consumer spending in the APAC region is slowing down in 2022. Meanwhile, enterprise IT spending will remain stable in the short term.

Companies might be cutting back on their IT budgets but funds are being directed to cloud services. That’s because, in a time of an economic slowdown, businesses hold back on other expenses but not on those crucial to their core operations. Cloud spending continues to grow because businesses see it’s necessary for their digital transformation and business growth.

Cloud services are comprised of infrastructure-as-a-service (IaaS), Platform-as-a-service (PaaS), and software-as-a-service (SaaS). SaaS remains to be the most popular cloud service. According to a study by Cisco, SaaS now takes up 75% of cloud computing workloads and workstations. Market analysts estimate SaaS end-user spending worldwide to reach $208 billion by 2023.

On the other hand, the IDC estimates IaaS and PaaS to have combined revenues of $400 billion in 2025. The growth will be at a CAGR of 28.8% during the 2021-2025 forecast period.

Public cloud services remain an integral part of enterprise recovery strategies after COVID-19. This is another reason why in a looming recession, organizations align their budgets to focus on the cloud. Cloud services help organizations achieve business resilience and improve risk management.

With three new regions coming soon, Google Cloud will be able to better meet the demand in APAC for cloud services. Coupled with countries working double time to build their 5G capabilities, we can only expect faster and improved cloud services in the future.