The Philippines moved up two places to the 10th spot—ahead of Indonesia, India and China—in the latest Cloud Readiness Index (CRI) of the Asia Cloud Computing Association.
The latest ranking of the Philippines among 14 Asia Pacific countries encapsulates the noticeable improvements and offers growth opportunities in the local cloud computing sector.
The 2014 edition of the CRI – the third since 2011 – finds the Philippines in the group of “Dedicated Improvers,” joining Taiwan, Thailand and Malaysia.
The latest ranking of the Philippines in the index puts the country in a better position to catch up with the more advanced cloud computing country users, to learn from the regulatory experience of more advanced country users of cloud computing and to identify and harness its niche industry sectors.
Some of the niche cloud computing-enabled sectors that can be explored are business process outsourcing (BPO) analytics and data visualization and financial services.
“The Philippines has a huge opportunity to leverage cloud computing to bring further innovation to niche sector activities where it has a global competitive advantage, such as business process outsourcing,” says Bernie Trudel, Chairman of the ACCA.
“We are excited about the Philippines’ dramatic progress in our Cloud Readiness Index – it has been a big leap from the bottom of the table to tenth place – and at this rate, we could see the Philippines break into the top tier of “cloud ready” countries in the next few years.”
As it is, ICT spending in the Philippines is expected to hit 11 percent in 2014, and the cloud and BPO sectors in the Philippines are flourishing.
In 2013, the Central Bank estimated the BPO industry export revenues at $13.34 billion.
This is expected to expand further by 15 percent to $15.34 billion in 2014.
The Asia Pacific countries showing the most progress moved up four places each – New Zealand (ranked 2nd), Australia (ranked 3rd) and Thailand (ranked 9th).
Meanwhile, South Korea (ranked 6th) and India (ranked 13th) fell by four places, posting the biggest drops among the countries covered by the index.
Hong Kong (ranked 5th) and Taiwan (ranked 7th) also fell by two places while China (ranked 11th), Indonesia (ranked 12th) and Vietnam (ranked 14th) all dropped by one place in the index.
The ACCA was established in 2010 as an industry association comprising the stakeholders of the cloud computing ecosystem in Asia.
In computer networking, cloud computing is a phrase used to describe a variety of computing concepts that involve a large number of computers connected through a communication network such as the Internet.
The phrase is often used in reference to network-based services, which appear to be provided by real server hardware, and are in fact served up by virtual hardware, simulated by software running on one or more real machines.
Such virtual servers do not physically exist and can therefore be moved around and scaled up or down on the fly without affecting the end user, somewhat like a cloud becoming larger or smaller without being a physical object.
In common usage, the term “the cloud” is essentially a metaphor for the Internet.
Marketers have further popularized the phrase “in the cloud” to refer to software, platforms and infrastructure that are sold “as a service”, i.e. remotely through the Internet.
Cloud computing relies on sharing of resources to achieve coherence and economies of scale, similar to a utility (like the electricity grid) over a network.
At the foundation of cloud computing is the broader concept of converged infrastructure and shared services.
The cloud also focuses on maximizing the effectiveness of the shared resources. Cloud resources are usually not only shared by multiple users but are also dynamically reallocated per demand.
Proponents claim that cloud computing allows companies to avoid upfront infrastructure costs, and focus on projects that differentiate their businesses instead of infrastructure.
Proponents also claim that cloud computing allows enterprises to get their applications up and running faster, with improved manageability and less maintenance, and enables IT to more rapidly adjust resources to meet fluctuating and unpredictable business demand.
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