The Whack Attack: Are APAC Tech Priorities Out of Whack?

12/06/2018 11:04:51
The Whack Attack:

Are APAC Tech Priorities Out of Whack?



A recent study by the law group Baker McKenzie asked 150 Sr. Business Leaders in the APAC region, “What are the greatest challenges/complexities affecting businesses in Asia Pacific today?”  It’s unsurprising that “Transformative Technologies” topped the charts in the minds of CEO’s and leaders in APAC as the most challenging and complex area of consideration for their businesses. The recent ESCAP Business Forum, held in Hong Kong in April of 2018, was certainly concerned with promoting APAC countries investment in IoT, robotics, cybersecurity and promoting the advancement of the digital skills and education of the population, so why not our APAC CEO’s? Baker McKenzie reports:

•    66% of leaders saw a need for continued innovation of new technology like AI and big data
•    64% of leaders anticipated dealing with cost pressure & shrinking margins
•    62% of leaders polled described potential compliance issues and trouble adapting to new or changing global regulations
•    51% of leaders were concerned about the current state of cybersecurity
•    40% of leaders expressed concern with existing technological infrastructure and a lack of commitment to investment in new and more scalable infrastructure

While focus on investment and innovation in all these areas should be a given, we can’t help but think that the percentage of leaders polled who emphasized the importance of these topics is shockingly low!  

AI & Big Data
The MIT Sloan Management Review stated that “Executives often underestimate the financial returns that can be generated by using data to create operational efficiencies.” Why are only 66% of APAC leaders concerned with the capabilities of AI and big data when humans are collectively projected to generate 5 exabytes of data every two days in 2018? To put that in perspective, up until 2003 only 5 exabytes of data had been generated in total globally. In contrast, in an annual survey of 60 Fortune 1000 MNC’s based in North America, 97.2% heavily emphasize investment in big data initiatives. At the moment (2018) big data generates $35 billion a year globally and is projected to generate $103 billion yearly by 2027, and these numbers are nothing to turn up your nose at.

Cost & Margins
With only 64% of APAC business decision-makers concerned with cost pressure and shrinking margins, we hope this number is so low because they are taking into consideration the huge advances and cost reducing potential of cloud computing and virtualization. Statistically, cloud computing reduces labor costs by 50% and energy costs by 90%. Additionally, cloud computing has been proven to increase productivity by an average of 82% within the first 6 months of installation. Virtualization goes hand in hand with cloud computing saving up too 80% in energy costs and increasing server utilization rates by up to 80%. Recent studies of companies utilizing virtualization say that it reduced their operating costs by at least 25% allowing that money to be reinvested in the business.

Compliance & Regulations
The most recent topic of conversation with regard to compliance has been the implementation of GDPR regulations. Using 10 specific criteria, supervisory authorities can impose fines of 10-20€ Million or between 2-4% of the worldwide annual revenue of an organization, whichever is higher, for non-compliance. A quick search of APAC organizations readiness for the new GDPR regulations is a virtual goldmine of frightening taglines like “Less Than a Third…,” “Only 12%...” and “Fewer than 1 in 3.”  Yet again we see that APAC business leaders might be significantly out of touch with some seriously vital issues with only 62% of those polled concerned with the issue of compliance.

Cybersecurity
May 2017 was ground zero for the famous WannaCry ransomware attack which seriously disrupted business in over 150 countries, affected more than 200,000 computers and cost billions of dollars. Cyber-attacks like WannaCry and countless others (a predicted 360K new malware samples are released daily) cause financial loss, business downtime and lower consumer confidence levels among countless other potentially disastrous consequences. While it’s not inconceivable that APAC business leaders have too much on their plate to understand the intricacies and benefits of AI, are only 50% aware of the current state of cybersecurity and its potential risks?

Legacy Infrastructure
Lower (at 40%) on the list for APAC leaders was concern over outdated legacy equipment and investment in new and more scalable infrastructure.  A recent Bloomberg article on the mega-airline Delta and their worldwide computer network failure due to outdated technology should be an eye-opener if antiquated infrastructure isn’t on your list of priorities. Consider the maintenance, talent, support, integration and compliance costs of running your business on outdated technology and weigh that against what it would cost to update your IT infrastructure. In addition, what potential customer is impressed with outdated technology that can’t grow and is a sprinting (not running) security risk?  

Sangfor Technologies arsenal of safeguards and revenue generating solutions have proven successful at addressing all these issues and more. These potential pitfalls are closely interconnected and Sangfor’s proven solutions are researched and developed to proactively solve the potential issues of operation and maintenance of your IT infrastructure, cyber security, revenue generation and compliance before they become a hinderance to your company’s growth.

Founded in 2000 and a publicly traded company as of 2018 (SANGFOR STOCK CODE: 300454 (CH)) Sangfor is the global leading vendor of IT infrastructure solutions specializing in Cloud Computing and Network Security. See www.sangfor.com for more information on Sangfor one-stop solutions for the network security needs of your business and your customers.

References:
https://insight.bakermckenzie.com/drivers-of-complexity
https://sloanreview.mit.edu/article/how-to-monetize-your-data/
https://www.bloomberg.com/news/articles/2016-08-10/delta-s-systems-failure-marks-wake-up-call-for-airline-industry
http://apbf.cyberport.hk/wp-content/uploads/2018/05/APBF_2018-Report-FINAL.pdf
https://www.statista.com/statistics/301566/big-data-factory-revenue-by-type/

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