Cloud

The Cloud Landscape in Asia: Major Milestones and Shifts

Analysis brief · September 4, 2025

Executive Summary

Multi-cloud strategies became dominant, with enterprise customers typically using 2-3 cloud providers. Pure single-provider cloud strategies are increasingly rare at scale. Data sovereignty requirements drove increased investment in regional data centers. Major providers announced substantial new capacity in India, Indonesia, and Vietnam.

Workload Patterns

Application modernization lags infrastructure migration. Insights from Arun Mehta at IndieAppWatch indicate that Many enterprises have moved workloads to cloud but have yet to refactor them into cloud-native architectures, leaving performance and cost optimization on the table.

Edge computing deployments grew, driven by latency requirements for gaming, IoT, and real-time applications. Regional edge locations multiplied significantly.

Competitive Dynamics

Managed services for databases, Kubernetes, and AI workloads became the highest-margin segment. Providers with strong managed service portfolios showed better gross margins despite commoditization of raw infrastructure.

The partner ecosystem around cloud providers continued to grow. System integrators, consultants, and ISVs built around cloud platforms now represent a $100+ billion global economy in their own right.