Hong Kong Cloud Computing Services Market

Cloud computing has already been dubbed the “future of commuting.” Because of the increased uptake of cloud-based data storage services in small, medium, and large Enterprises in Hong Kong, the Cloud Computing Services Market is gaining momentum and is poised to grow at a Healthy Rate and is projected to reach a Market Size of US$ 1.95 Billion in 2025.

Definition / Scope
Market Overview
Market Risks
Market Drivers
Market Restraints
Industry Challenges
Technology Trends
Impact of COVID-19
Market Size and Forecast
Market Outlook
Technology Roadmap
Competitive Landscape
Competitive Factors
Key Market Players
Strategic Conclusion
References

Definition / Scope

Information technology, or IT, is delivered as part of a cloud computing service over the internet or a dedicated network. It is a payment-based service with on-demand delivery. Virtual desktops, storage, servers, and development platforms are some of the services available via cloud computing services. Because of the exciting market opportunities that cloud computing services provide, they are rapidly gaining traction in a variety of industries around the world.

Cloud computing aids in the efficient handling of data, as well as the collection and storing of data within a specific network. It literally refers to a confined storage space. Cloud computing aids in the efficient handling of data, as well as the collection and storing of data within a specific network.

It basically refers to a natural storage space from which all devices connected to the network can access data.

Market Overview

Hong Kong is one of the two major data center hubs in Asia-Pacific and houses the data centers of cloud service providers such as BT, CenturyLink, Google, Microsoft, Rackspace and Verizon. In Hong Kong, nearly one-fifth of businesses are using cloud computing in some way or another, with the remaining 75% either adopting or preparing to do so.

Hong Kong has long been regarded as a gateway for Mainland Chinese companies looking to grow internationally, as well as multinational companies looking to capitalize on opportunities in the Greater China region, generating substantial demand from each of these groups of end users.

The government is also an end user of cloud computing in Hong Kong. According to a government announcement, the government has suggested a cloud environment that includes an in-house private cloud owned and managed by the government, outsourced private clouds consisting of facilities dedicated to the government in protected data centres operated by contractors, and public clouds for generic services where the government has less influence about how the services are delivered.

All bureaus and departments will be able to use the government cloud to implement their own IT-enabled business transformation programmes in a more flexible, cost-effective, and coordinated manner. This allows for more versatile deployment. This enables flexible deployment of IT resources and workloads, and helps to reduce the overall carbon footprint and environmental impact.

In Hong Kong, the banking and financial services sector is a significant one, and one that is taking a cautious approach to cloud computing. Although market participants are increasingly adopting virtualization, public cloud adoption remains low due to concerns regarding regulatory enforcement, data protection, and privacy.

Most banks, on the other hand, prefer the private cloud model, which alleviates these concerns. This model is gaining traction as companies layer cloud-enablement tools on top of virtualization to improve resource efficiency and business agility.

In addition to resource management and cost savings, Hong Kong businesses are looking to use cloud computing to escape vendor lock-ins, an answer that stands out among the other countries in the report. Data security threats/risks to the company are the most significant barriers to adoption. When it comes to accessing apps through the cloud, Hong Kong businesses prioritise application availability over all other factors.

The impact of Mainland China on Hong Kong is another aspect that foreign cloud service providers are keeping an eye on while making new investments. Any current plans may be slowed as a result of this, as businesses may take a wait-and-see approach before making any local IT spending decisions.

Market Risks

The Major Risks posing as threat to the growth of the Hong Kong Cloud Computing Services Market include

Financial risk

Overspending and revenue loss are two types of financial risk. The cost of cloud services is three times as likely to be a problem today as it was five years ago, according to the North Bridge and Wikibon Future of Cloud Computing Survey released in December 2015.

For a private cloud, the financial risks are:

Underestimating initial cost to build a private cloud
Continuing to carry the capital expenditure related to hardware and software.

The financial risks associated with a public cloud are primarily related to the unpredictable existence of costs—that is, increasing the expense of using public cloud due to inadequate planning and business requirements.

Vendor risk

Due to the ease of access to IaaS, a slew of creative SaaS start-ups has sprung up, some with novel solutions that fill gaps that conventional vendors had overlooked. For large organizations looking to share growing amounts of data while meeting stringent control criteria, some of these vendors might not be viable.

In the use of third-party cloud computing, service providers must ensure that they have sufficient controls in place to ensure compliance with various laws, guidelines, and regulations:

Many companies are dealing with Shadow IT, which increases the risk of the company by using public cloud solutions that have not been risk-vetted. According to Skyhigh Networks, less than one out of every ten providers encrypt data at rest, and even fewer enable customers to encrypt data using their own encryption keys.

Top Market Opportunities

The top opportunities for new-entrants in the Hong Kong Cloud Computing Services Market are

Hybrid cloud services

Enterprises with existing infrastructure are shifting toward cloud computing platforms and are able to take a hybrid approach in order to enjoy the advantages of both on-premises and cloud services. Furthermore, SMEs are largely embracing cloud computing services due to significant benefits such as no upfront infrastructure costs and compute services that are available on demand. These factors are influencing the adoption of hybrid cloud services by businesses. Furthermore, the hybrid cloud provides improved workload management, increased security and compliance, and seamless integration across DevOps teams.

Industry 4.0

The introduction of new technology such as Artificial Intelligence, cloud computing, and the Internet of Things is aided by the fourth industrial revolution. Cloud computing is being integrated with this revolutionary technology by businesses in a variety of industry verticals.

Another factor driving the market’s growth is the growing adoption of Infrastructure as a Service, Platform as a Service, and Software as a Service, especially among Small and Medium Enterprises (SMEs). The Hong Kong government is focusing on launching policies and programmes to encourage the implementation of advanced technologies in a variety of sectors, including retail, manufacturing, financial services, and consumer goods.

Market Drivers

The Key factors driving the growth of the Hong Kong Cloud Computing Services Market are

Robust ICT infrastructure

Hong Kong has a strong ICT infrastructure and is consistently ranked among the top digital competitiveness cities in the world. Hong Kong was ranked second in Asia and fifth in the world in the IMD World Digital Competitiveness Ranking 2020, released by the IMD World Competitiveness Centre, while the Digital Intelligence Index 2020, compiled by the Fletcher School at Tufts University and Mastercard, ranked Hong Kong second in the Asia Pacific region and third globally for digital intelligence. Hong Kong’s impressive adoption of emerging digital technologies such as Cloud Computing is reflected in these rankings.

Also, according to the Asia-Pacific Cloud Readiness Index (CRI) 2020 by ACCA, which is an index of readiness of economies to maximize the capabilities of cloud computing, measuring cloud readiness against 10 parameters. Hong Kong is ranked at the pole position of the Index with a total score of 81.9, which clearly indicates the growth of Hong Kong as a Cloud Computing “Superpower” in the Asia-Pacific Region.

Surging adoption of Cloud Technology by Small and Medium Enterprises (SMEs)

The increasing adoption of the market by both large and small businesses is a significant feature of the market (SMEs). This computing has helped SMEs thrive in a much larger market space, thanks to the increasing demand for on-demand and need-based services. Furthermore, the service providers’ pay-per-subscription-based model has given SMEs the flexibility to reach their full potential. Despite some market obstacles such as security issues and outdated systems, the market is expected to expand rapidly in the coming years.

Higher ROI with lower infrastructure and storage costs

Enterprises are concerned about the costs of data hosting on-premises, both in terms of deployment and maintenance. Furthermore, employee costs and problems with downtime are two additional challenges for businesses. The current competitive environment and global economic conditions have intensified the implementation of cost-effective business model restructuring steps. Another factor driving the adoption of cloud computing services is the growing shift of businesses toward digital transformation and the acceleration of customer engagement, both of which are lowering enterprise costs. Furthermore, the cloud offers the pay-as-you-go model, which allows businesses to pay for cloud services based on how much they use them, resulting in lower costs.

Market Restraints

The Primary Factors hindering the growth of the Hong Kong Cloud Computing Services Market are

Preconceived notion among Enterprises that deploying cloud will mean incurring added security risks

Companies in Hong Kong are conservative by nature, and as a result, they are hesitant to fully adopt Cloud Computing technology.

The most challenging obstacle to fostering cloud technology in Hong Kong is the widespread belief that deploying cloud would result in increased security risks. According to a survey conducted in 2017, 61% of SMEs in Hong Kong had experienced a cyber breach in the previous three years. The use of non-company devices to access the company network, the danger posed by third-party service providers, and – for smaller companies – low cybersecurity budgets were all common causes of the breach.

Vendor lock-in

Cloud models can be private, public, or a mix of the two, and each has advantages and disadvantages depending on the IT infrastructure load and business objectives of the prospective users. One of the biggest concerns about using a single company’s services is “vendor lock-in,” which can restrict choices and prevent businesses from migrating data to another provider once it’s on that cloud. This problem can be solved, however, by selecting cloud providers that build and host cloud infrastructure using open-source software, allowing customers to easily switch between different types of software.

Lack of availability of cloud services

Another factor contributing to low cloud adoption is the lack of availability of cloud services. Many Cloud Providers consider Hong Kong to be an “edge location” and have kept it on their radar for future expansion. For example, Amazon Web Services (AWS) is the world’s most popular public cloud provider, but it has yet to expand to Hong Kong. AWS now considers Hong Kong to be an “edge location,” which is a significant change, but there is still work to be done. The lack of significant presence of large enterprises providing Cloud Services is affecting the adoption of Cloud Computing in the Region, which significantly impedes the growth of the Cloud Computing Market in Hong Kong.

Industry Challenges

The major challenges faced by the Players in the Hong Kong Cloud Computing Services Market are

Data Security as a Challenge

The cloud is an off-premises system, with data centres in the United States and Europe most likely. To protect data, prevent cyberattacks, and comply with international regulations, a strong security strategy is needed, but it should not hinder results. The user experience should be unaffected by the encryption of data sent to the cloud and the decryption of files returned from the cloud.

Cyberattacks causing detrimental business operations and critical data loss

Cloud computing systems assist businesses in increasing productivity and lowering costs. Furthermore, these networks have a variety of benefits, such as versatility, scalability, and agility. Despite the advantages and protection protections provided by the cloud, data stored in the cloud is still vulnerable to cyber-attacks. The number of cyber-attacks is increasingly increasing due to the growing amount of data and rising business initiatives toward digital transformation. Cyber-attacks like Spectre and Meltdown, as well as cloud malware injection attacks, account or service hijacking, and man-in-the-cloud attacks, are putting enterprise data at risk. These dangers can result in financial losses and shutdowns.

Technology Trends

The major technology trends in the Hong Kong Cloud Computing Market include

Edge Computing

It is a method of optimizing cloud computing network systems by processing data at the network’s edge, close to the data source. It uses cloud servers to handle less time-sensitive data in real time or to store data for the long term.

With the ongoing convergence of IT and telco, edge computing will take center stage in 2021, opening up a slew of new possibilities for businesses to leverage new technology and computing resources.

Edge computing can play a key role in providing real-time information and data processing, as well as streamlining the flow of traffic from IoT devices, as the number of IoT devices grows dramatically. This claim is backed up by Gartner’s prediction in 2020, 5.6 billion IoT devices operated by businesses and governments will use edge computing for data collection and processing.

Service Mesh

Since cloud systems are so complex, it’s important to make sure they have a reliable and secure communication environment. A service mesh provides users with a dedicated layer for service-to-service communication, allowing them to create a highly dynamic and stable cloud platform.

A cloud platform’s service mesh is a crucial aspect. A service mesh may fill the numerous requirements that arise from service identity to access various policies within the cloud network as cloud ecosystems expand and evolve to meet the changing needs of users.

The mesh establishes a network communication infrastructure that lets the user decouple and offload the majority of the application’s network functions from your service code.

Pricing Trends

The Cloud Computing Services are priced on the basis of usage as: subscription based, pay-per-use and hybrid pricing (combination of subscription based + pay-per-use pricing)

Price in Cloud Computing services Market is influenced by:

The lease period, which can be considered as the contract time between the provider and the customer.
The initial cost of the resources
The rate of depreciation, which means how many time these resources are being used
The quality of service
The age of the resources
The cost of Maintenance

Pricing Models

There are several pricing models used in the cloud, and they can be divided into two categories based on the evolving period: fixed and dynamic.

Fixed Pricing Models

Because of the price’s long-term stability, fixed pricing models are also known as static pricing models. Fixed pricing models are used by the most well-known cloud service providers, such as Google, Amazon Web Services, Oracle, Azure, and others.

Pay-per-use Model

In this model, user only have to pay for what they use. Customer pays in function of the time or quantity he consumes on a specific service.

	Standard Storage	Reduced Redundancy Storage
First 1 TB / Month	0.0390 $ / GB	0.0312 $ / GB
First 49 TB / Month	0.0383 $ / GB	0.0306 $ / GB
First 450 TB / Month	0.0377 $ / GB	0.0301 $ / GB
First 500 TB / Month	0.0370 $ / GB	0.0296 $ / GB
First 4000 TB / Month	0.0364 $ / GB	0.0291 $ / GB
First 5000 TB / Month	0.0357 $ / GB	0.0285 $ / GB

Subscription

Users pay on a monthly basis to use software as an online service in order to benefit from a service in this model. The customer agrees to use a pre-selected combination of service units for a set number of months or years, normally monthly or yearly.

Hybrid

This model combines the pay-per-use and subscription pricing models; all services rates are set using the subscription model, but pay-per-use pricing is used when the use cap is exceeded.

Resource	Free quota per day	Unit	Price beyond the free quota per unit
Stored Data	1 GB	Per GB / Month	0.18 $
Entity Reads	50000	Per 100K entities	0.06 $
Entity Writes	20000	Per 100K entities	0.18 $
Entity deletes	20000	Per 100K entities	0.02 $

Dynamic Pricing

Dynamic pricing models, also known as real-time pricing, are extremely versatile and can be thought of as the product of a function that takes as parameters cost, time, and other variables such as location, user perceived value, and others.

If there is a request for dynamic pricing, the price is determined depending on the pricing process. Dynamic pricing, which reflects the real-time supply-demand relationship, is a more promising charge strategy than fixed pricing because it can better leverage customer payment potentials, resulting in greater profit benefits for the cloud provider.

There are many dynamic pricing models like:

Cost-based model, which merge the profit with the level of Cost.
Value-Based, which take into consideration the basis of user perceiving value
Competition-based, which take into consideration the competitor price of services
Customer-Based, which consider what the customer is prepared to pay.
Location-Based, where price is set according to the customer location.

Regulatory Trends

Some of the initiatives adopted by the Hong Kong Government to promote the Region as a Regional Hub of Cloud Computing include:

The government is assisting SMEs in adopting cloud-based solutions through its Technology Voucher Program, which offers grants of up to HK$400,000 to companies in the sector to assist them in adopting and accessing technical resources and solutions in order to increase efficiency, update, or transform their business processes.

The government has set aside HK$45 billion (US$5.73 million) for technology-related ventures, such as high-school IT Innovation Lab programmes, university research facilities improvements, and the expansion of Hong Kong’s technology and digital business park, Cyberport.

Hong Kong Government is planning to incorporate Hong Kong as the cloud technology hub of the region owing to its reliable telecommunications infrastructure, exceptional broadband quality and the free flow of information and is currently developing its own next-generation GovCloud and big data analytics platform, expected to be launched in 2021.

Impact of COVID-19

The latest coronavirus epidemic has had an economic effect all over the world. As a result, companies in a wide range of sectors depend heavily on IT-related services. As a result of the lockdown, there has been a huge increase in demand for live streaming services such as Flulu, Netflix, Amazon, and others. In the midst of the COVID-19 pandemic, this boom in video-on-demand (VoD) solutions has increased demand for Infrastructure-as-a-Service IaaS cloud-based services.

The Hong Kong government and businesses have implemented a “work from home” policy, which has resulted in an increase in demand for SaaS-based collaboration solutions. To broaden their product ranges, key market players are focusing on new product launches.

For example, Microsoft Corporation launched “Hospital Emergency Response,” a cloud-based solution for the healthcare sector that is powered by Azure, in May 2020. The Centers for Disease Control and Prevention (CDC) and other healthcare organisations are permitted to use this solution to develop COVID-19 evaluation methods and reduce front-line worker tension.

Such active initiatives are expected to drive the demand for cloud-based solutions in the coming years.

Market Size and Forecast

The Cloud Computing Services Market in Hong Kong is valued at US$ 722 Million in 2020 and is poised to grow at a robust CAGR of 22% to reach a Market Size of US$ 1.95 Billion in 2025.

The development of a strong ICT infrastructure has aided the growth of the cloud sector in Hong Kong, and the Hong Kong government’s “Digital 21” initiative has been instrumental in stimulating market growth. In areas including wealth management and asset management, notable developments include the growing adoption of cloud technology to support the banking and finance sector for non-critical applications (e.g., business communication software to improve the client relationship experience).

Market Size based on Service

Because of its flexible prices, easy maintenance, and deployment, the Software as a Service (SaaS) segment dominated the cloud computing market in 2020 with a share of over 54 percent. According to industry reports, the number of businesses moving to the cloud is increasing, with 73 percent of businesses moving almost all of their applications to the SaaS platform.

The Software-as-a-Service (SaaS) segment generated revenues to the tune of US$ 390 Million in 2020 and is poised to grow at a healthy CAGR of 20.4% to reach a Market Size of US$ 986.7 Million in 2025.

The Infrastructure-as-a-Service (IaaS) segment is the fastest growing segment and it constitutes 32% of the market share and is valued at US$ 231 Million in 2020 and is expected to grow at a CAGR of 26% to reach a Market Size of US$ 733.6 Million in 2025.

The Platform-as-a-Service (PaaS) holds around 14% of the Market Share and it is expected to grow at a CAGR of 22.4% to reach a Market Size of US$ 357.1 in 2025 from a valuation of US$ 130 Million in 2020.

Market Size based on End-Use

Based on the end-use the Cloud-Computing Services Market is segmented into BFSI, IT and telecom, manufacturing, retail and consumer goods, media and entertainment, and government and public sector, among others.

During the forecast period, the IT and telecommunications segment is projected to have the largest market share. The growth can be attributed to the increasing use of cloud-based data storage and management solutions. Safe storage, improved efficiency and performance, and other factors have enabled the IT and telecom industries to concentrate even more on customer-centric digital transformation.

The IT and telecommunications sector accounted for 36% of the Market Share and is projected to grow at 22.2% to reach a Market Size of US$ 590.2 Million in 2025 from a valuation of US$ 216.6 Million in 2020.

The BFSI sector is the fastest growing and constitutes 16% of the Market Share which is poised to grow at a significant CAGR of 27% to reach a Market Size of US$ 381.6 Million in 2025 from US$ 115.5 Million in 2020.

Consumer Goods & Retail sector reported Market Share of 12% and US$ 86.6 Million of revenue in 2020 and is poised to grow at a CAGR of 19.6% to reach a Market Size of US$ 211.9 Million in 2025.

Healthcare segment recorded Market Share of 14% and generated revenues to the range of US$ 101 Million in 2020 and is projected to grow at a CAGR of 21.4% to reach a Market Size of US$ 266.3 Million in 2025.

Government segment accounted for 6% of the Market Share and is expected to reach a Market Size of US$ 120 Million in 2025 from US$ 43.3 Million in 2020 growing at a CAGR of 22.6%

The Manufacturing sector constitutes 9% of the Market Share and is projected to grow at 21.3% to reach a Market Size of US$ 170.7 Million in 2025 from a Market Size of US$ 65 Million in 2020.

The Other sectors recorded 7% of the Market Share and generated US$ 50.5 Million of the revenue and is poised to grow at a CAGR of 20% to reach a Market Size of US$ 125.7 Million in 2025.

Market Size based on Deployment Type

Public, private, and hybrid are the types of deployment methods used by industry players.

In 2020, public deployment accounted for the majority of market share, and it is expected to continue to do so in the future. Cloud technology’s scalability and versatility, as well as security and data center access, are some of the primary factors that will increase the technology’s usefulness. As of 2020, about 60% of workloads will be run on a hosted cloud service, according to industry experts.

The Public Cloud segment recorded revenues of US$ 433.2 Million in 2020 and is projected to grow at a CAGR of 21% to reach a Market Size of US$ 1.12 Billion in 2025. Private Cloud segment accounted for 10% of the Market Share and US$ 72.2 Million of the total revenues in 2020 and is poised to grow at a CAGR of 19.8% to reach a Market Size of US$ 178.2 Million in 2025

In the coming years, hybrid deployment with an integrated ecosystem that includes both public and private models will see significant growth. The hybrid model has emerged as the most common implementation model among industries that will move the cloud industry forward. According to industry research, 77 percent of global enterprise infrastructure decision-makers preparing, updating, or adopting cloud technology prefer a hybrid environment. Furthermore, companies will benefit from the combination of edge computing and hybrid cloud computing, where the hybrid model will aggregate relevant data and edge computing will support processing.

The Hybrid Cloud segment accounts for 30% of the Market share and garnered revenue of US$ 216.6 Million in 2020 and is expected to grow at a CAGR of 25.4% to reach a Market Size of US$ 671.6 Million in 2025.

Market Outlook

In Hong Kong, cloud services are being used by more than 75% of businesses which is expected to increase to more than 90% by 2025. During the forecast period, private cloud companies and services are projected to expand by 22%. During the period 2020–2025, hybrid infrastructure services are expected to grow at a CAGR of over 25%.

As businesses use private and public cloud services to boost knowledge sharing and data processing performance, hybrid cloud services are gaining popularity. In 2019, Big data technology was used by 24% of major companies in the United States. Big data and AI are being used by financial service providers to forecast investment risks, monitor portfolios, and identify fraud. The Cloud Service Providers are expected to perform well during the forecast period due to the need for high performance computing and flexibility in deployment from other allied industries such as banking and financial services.

Over the next five years, this industry is expected to transition to a hybrid IT model as the regulatory system changes and service providers mature, allowing customer data (database) to reside in a private environment while applications are run on a public or multi-tenanted environment.

Technology Roadmap

From Optimization to Automation

According to the report, several businesses (68.1 percent) are still in the early stages of preparing and implementing cloud strategies. This represents the predominant use of cloud technology to meet ad-hoc business needs or to supplement established organisational resources as a way to simplify and streamline traditional business processes. This is likely to change in the future.

Cloud computing is supposed to be used by aggressive businesses to simplify business processes and accelerate business transformation. Since cloud platforms are designed to provide the appearance of an infinite resource pool, organisations would be able to handle automated environments more effectively if they use intelligent, real-time monitoring and management systems.

Emerging technologies like Software-Defined Everything (SDE) are ideally suited to fulfil these demands and make the transition easier. Instead of being manually configured at the hardware layer, the management and control of networking, computing, storage, and/or data centre infrastructure is automated and handled by intelligent software in the SDE vision. Both infrastructure services can be distributed as a service in this way. Internal IT will be able to concentrate more on the companies’ core competencies, look to revitalise their business model, and push new business economics as a result.

Competitive Landscape

Some of the major players in the industry include PCCW, Atos, Datapipe, Adobe Inc.; Alibaba Group Holding Limited; Amazon.com Inc.; Google LLC; IBM Corporation; Microsoft Corporation; Oracle Corporation; Salesforce.com Inc.; SAP SE; and Workday, Inc. Partnerships, strategic mergers, and acquisitions are expected to be the most successful ways for industry players to gain fast access to new markets while also improving their technical capabilities. In addition, product differentiation and up-gradation are expected to help companies grow in the industry.

Key Market Developments

In May 2020, Microsoft announced Microsoft Cloud for healthcare to tackle COVID-19 challenges. Microsoft introduced industry-specific cloud offerings for healthcare organizations, improved workflow efficiency, and streamlined interactions. Microsoft Cloud for Healthcare, include data analytics for both structured and unstructured data.

In May 2019, Microsoft Corp. launched a series of new Azure development technologies and services with advanced capabilities spanning AI, mixed reality, loT and blockchain in the hands of developers. The company is expected to share these and other advancements in hybrid cloud and edge computing at its Microsoft Build conference.

In November 2018, IBM Corporation launched the IBM Talent and Transformation service to help businesses and their employees effectively acquire artificial intelligence (Al) capabilities.

Competitive Factors

Partnerships, strategic mergers, and acquisitions are expected to be the most successful ways for industry players to gain quick access to new markets while also enhancing their technological capabilities. Differentiation and innovations in products are also expected to help businesses succeed in the market.

Key Market Players

Some of the Key Market Players in the Hong Kong Cloud Computing Services Market include

PCCW Limited (PCCW) is a holding company for investments. Pacific Century Premium Developments (PCPD) is a division of the company that focuses on construction projects in Indonesia, Japan, and Thailand. HKT Limited, Media Business, Solutions Business, PCPD, and Other Businesses are the company’s divisions. It operates in the Hong Kong Special Administrative Region, providing telecommunications and related services such as local telephony, local data and broadband, international telecommunications, mobile, and other telecommunications businesses such as customer premises equipment sales, pay-television (pay-tv) services, and an Internet portal digital media entertainment platform.

Atos SE is a digital transformation firm headquartered in France that specializes in cloud, big data and analytics, cybersecurity, high-performance computing, business software, the digital workplace, automation, and the Internet of Things (IoT). The company develops high-end innovations and designs, implements, and operates customer-specific products based on its partners’ technology.

DataPipe, Inc. provides information technology services. The Company offers application management, database administration, disaster recovery, storage management, data center migration, hosting, cloud computing, and security services.

Alibaba Cloud, also known as Aliyun, is a Chinese cloud computing firm owned by Alibaba Group. Alibaba Cloud offers online companies and Alibaba’s own e-commerce ecosystem cloud computing services. Singapore is where the company’s overseas activities are registered and headquartered. Elastic Compute, Data Storage, Relational Databases, Big-Data Processing, Anti-DDoS security, and Content Delivery Networks are among the cloud services offered by Alibaba Cloud on a pay-as-you-go basis (CDN). It operates data centres in 23 regions and 63 availability zones around the world, making it China’s largest cloud computing business.

Amazon Web Services (AWS) is an Amazon company that offers metered pay-as-you-go cloud computing systems and APIs to individuals, businesses, and governments. These web services for cloud computing include a range of simple abstract technical infrastructure and distributed computing building blocks and tools. Amazon Elastic Computing Cloud (EC2) is one of these services, which enables users to have a virtual cluster of computers accessible at all times via the Internet. Much of the characteristics of a real machine are emulated by AWS’s virtual machines, including hardware central processing units (CPUs) and graphics processing units (GPUs).

Google LLC is a multinational technology corporation based in the United States that specializes in Internet-related services and products such as online advertisement applications, a search engine, cloud storage, apps, and hardware. Google Cloud Platform (GCP) is a collection of cloud computing services provided by Google (company). It operates on the same infrastructure that Google uses internally for its end-user products like Google Search, Gmail, file storage, and YouTube. It offers a number of modular cloud services, including computation, data storage, data processing, and machine learning, in addition to a range of management tools.

IBM is an American multinational technology corporation based in Armonk, New York, with operations in over 170 countries. IBM Cloud is a set of cloud computing services for businesses provided by IBM, a technology firm. Application as a service (PaaS) and infrastructure as a service (IaaS) are combined in this solution (IaaS). Tiny development teams and organizations, as well as large enterprise enterprises, can use the platform, which scales and serves them all. It’s been used in data centres all over the world. Amazon Web Services, Microsoft Azure, and Google Cloud Platform are IBM’s major rivals in the cloud computing industry.

Microsoft Corporation is a multinational technology corporation headquartered in Redmond, Washington, United States. Computer software, consumer electronics, personal computers, and related services are developed, manufactured, licensed, supported, and sold by the company. Microsoft Azure (/r/) is a cloud storage service from Microsoft that allows developers to design, test, deploy, and manage applications and services via Microsoft-managed data centres. It offers software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS), as well as support for a wide range of programming languages, tools, and frameworks.

Oracle Corporation, based in Austin, Texas, is an American multinational information technology corporation. The company’s headquarters were previously located in Redwood Shores, California, until December 2020, when it relocated to Texas. Oracle Cloud is a cloud computing service provided by Oracle Corporation, which includes servers, storage, networking, software, and services delivered via a global network of Oracle Corporation-managed data centres. These services can be provisioned on demand through the Internet, according to the company.

Strategic Conclusion

The Cloud Computing Services Market in Hong Kong is a “Sunrise” Industry which is at the cusp of significant growth, supported by the Government Initiatives supporting all corners of the industry including SMEs and Large Enterprises.

The Cloud Computing Services Market in Hong Kong is driven by factors such as Robust IT Infrastructure in Hong Kong, Surging adoption of Hybrid Cloud Technology by Small and Medium Enterprises (SMEs) and Higher ROI with lower infrastructure and storage costs. Factors such as Vendor lock-in and Lack of availability of cloud services are expected to hinder the growth of the Cloud Computing Services Market in Hong Kong.

References

Appendix

SMEs – Small & Medium Enterprises
IoT- Internet of Things
AI – Artificial Intelligence
ML – Machine Learning
AR – Augmented Reality
VR – Virtual Reality

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