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Some highlights of IBM study, Philippines setting:
IBM says organizations in the Philippines to spend close to half of their cloud budget on hybrid over the next three years
Philippines executives investing in hybrid multi-cloud to drive business transformation, IBM survey reveals
The value derived from hybrid, multi-cloud platform technology and operating model at scale is 2.5 times the value derived from a single platform, single cloud, survey reveals.
Public cloud spends by Philippine organizations to reduce from 53 percent share today to 43 percent by 2023.
By 2023, Philippine organizations expect to be using an average of 10 clouds per organization, however, only 28% of businesses have holistic multi-cloud management strategy in place.
By EDD K. USMAN
(SDN) — CORONAVIRUS, the pandemic of 2019, has positive impact (no pun intended) on organizations’ digital transformation (DX).
That’s something that is borne out in surveys conducted by prestigious organizations, and acknowledged by top-level business executives. Globally, including in the Philippines.
In fact, IBM Philippines headed by President and Country General Manager Aileen Judan-Jiao has unveiled a global survey its IBM Institute for Business Value (IBV) conducted recently that looked into organizations’ adoption of technology driven and accelerated by the pandemic.
The American tech titan Filipina executive met members of the Philippine media and bloggers virtually for the unveiling on December 4 of the IBM’s C-Suite findings on Covid-19 and the Future of Business.
With her were two IBM Philippines executives, Leo Capinpin, leader, Systems (Hardware), and Christine Llanto-Ravelo, country leader for Cloud and Cognitive Solutions.
Judan-Jiao said the survey had 3,000 business executives and 3,000 technology executives as respondents.
No turning back
She added that Filipino business executives (100) were among the respondents of the study.
“We can see the impact of the pandemic today. We must be built for continuity, resilience,” the IBM Philippines head pointed out, referencing the IBV study. “So it’s really acceleration. In the Philippines there was (already) acceleration months ago.”
Judan-Jiao emphasized the acceleration of digital transformation was triggered by the pandemic and she sees this trend continuing to the future even post-pandemic.
The Filipino tech leader noted that 51 percent of Philippines business executives see digital transformation continuing its march even with vaccine coming. “Acceleration will continue, digital transformation will continue to happen.”
Judan-Jiao emphasized these changes are for good, “no going back to where we are.”
Apparently, one of the changes in businesses is the new focus on people (their employees) — from 2 percent two years ago to 24 percent — which the pandemic has highlighted.
“So, IBM recommends to put the well-being of our people (in front),” she added, noting at the same time employees’ rising expectations.
Llanto-Ravelo said “the pandemic really changed the business landscape. We see that business leaders are more accountable in their business Investments.”
More from Judan-Jiao:
“I believe (digital transformation) will continue. Those who have deliberately implemented they can see ROI (return of investment), not just for the sake of technology.
“Why am I more optimistic? Because unlike before, more and more are getting interested. We are now talking. They are beginning to see it.”
She pointed out that it’s not only tech people invested on digital transformation it will not continue, but it will continue because business people are getting interested.
Capinpin has his take on the accelerating pandemic-driven technology adoption.
“I really think there is a shift in human behavior, having had the test of the capabilities that exist today. The luxury of being able to do things efficiently will continue. Having this ability to connect in the comfort our homes has changed the dynamic. Once you get the taste of certain things you don’t wanna go back.”
Per IBM:
Business executives in the Philippines are increasingly planning to invest in hybrid multi-cloud platform strategies and capabilities to drive business transformation and to unlock value, the IBV survey found out.
Filipino executives see spike on spending
The IBV surveyed over 6,000 global executives, including 100 executives from Philippines, across industries to gain an in-depth understanding of their organizations’ use of hybrid cloud, multi-cloud and their approach to multi-cloud management for the report titled, “The hybrid cloud platform advantage: A guiding star to enterprise transformation in the Philippines.”
According to survey respondents from the Philippines, 17 percent of their IT spend is allocated to cloud and they plan to increase the share of spend on hybrid cloud from the present 39 percent today to 48 percent by 2023. Most of their cloud budgets are being allocated to hybrid cloud platforms even as their public cloud spend is set to reduce from 53 percent share today to 43 percent by 2023.
Most industries globally will exhibit growth in the number of clouds they will deploy, which can go up to 11 clouds per organization, particularly in insurance, telecommunications, retail, banking and consumer products as these industries will continue to expand multiple cloud deployments in the next three years.
Further, the study confirmed the ROI of a platform approach as respondents said that the value derived from a full hybrid, multi-cloud platform technology and operating model at scale is 2.5 times the value derived from a single platform, single cloud vendor approach. In fact, the platform approach is cited as accelerating value with scale.
Commenting on the survey insights, Lope Doromal, chief technology officer, IBM Philippines, said, “Undoubtedly, in today’s digital-first economy cloud adoption plays a key role. It is interesting to note that most organizations surveyed in the Philippines find hybrid multi-cloud as the critical enabler that will help them embark on their journey to become a Cognitive Enterprise. Moreover, they are realizing that Hybrid Cloud enables improved business performance and greater return on investment. Proof of this are the leading businesses that have demonstrated their competitive advantage through a robust hybrid cloud management and governance platform.
“In the Philippines, we’ll see more businesses leveraging a secure, interoperable, open and free from vendor lock-in hybrid multi-cloud platform technology that embeds AI to achieve successful business transformation.” (✓)
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About IBM Philippines
For more information on IBM, please visit http://www.ibm.com/ph