PRESS RELEASE

Business Process Outsourcing (BPOs), Technology Startups, and Retail to lead SME Cloud
Computing Adoption in the Philippines, says new study by Apex Industry Association

Country ranked 9th out of 14 (and 2nd in ASEAN, behind Singapore) in Asia Cloud
Computing Association study on cloud computing attractiveness to small and medium
enterprises (SMEs) in the Asia Pacific.
Among the first studies to provide a comparative framework for assessing cloud
computing and SME readiness for these markets
Key focus areas for the Philippines include big data, business analytics, e-commerce,
mobile applications, and transport
Development and adoption of cloud computing to be driven and shaped by
smartphone and mobile users, a natural move for businesses targeting this rapidly
growing segment
2013 government framework on IT in the banking industry to spur adoption in
financial services

MANILA, PHILIPPINES (25 MAR 2015) Business Process Outsourcing (BPO), technology
start-ups and retail are the three industries likely to lead cloud computing adoption in the
Philippines, says a new study by the Asia Cloud Computing Association (ACCA), the apex
industry association for cloud computing in Asia Pacific.
While the Philippines ranked 9th overall out of 14 in terms of its attractiveness of cloud
computing to small and medium enterprises (SMEs), it scored relatively well in terms of Early
Adoption Suitability in this comparative index of Asia Pacific economies.
A combination of aggressive government initiatives for cloud computing adoption (such as
GovCloud and the Cloud Top Project) and an increased emphasis in SMEs (such as the
Magna Carta for Micro, Small and Medium Enterprises) boosted the countrys potential and
attractiveness for cloud computing solutions, observed John Galligan, Chairman of the
ACCAs Cloud Segments Working Group, which helmed this research project. But while SMEs
make up 99.6% of all businesses, the sectors contribution to the Philippines economy has
remained small, around 35% of GDP.

Asia Cloud Computing Association | http://asiacloudcomputing.org

Therefore, the ability to increase both reach and productivity while controlling costs is
therefore seen to be a compelling proposition, not only for the mid- and large enterprises,
but for the SME sector as well, said Bernie Trudel, chairman of the ACCA.
The Philippines ranked ahead of Indonesia, Malaysia, Thailand, India and Vietnam in the
study, putting it second in ASEAN, behind Singapore. Japan, Singapore and Hong Kong
topped the rankings, with South Korea, China, Taiwan, Australia and New Zealand forming
the middle-tier. Countries were ranked on five pillars market size, market coherence,
market demand, price and government support.

SME Cloud Computing Market Attractiveness Index 2015

1.
2.
2.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Japan
Singapore
Hong Kong
South Korea
China
Taiwan
Australia
New Zealand
Philippines
Indonesia
Malaysia
Thailand
India
Vietnam

101.4
25.7
29.3
40.3
141.9
27.6
44.3
28.3
17.8
76.8
20.6
22.4
39.3
6.2

57.7
78.0
75.7
67.7
37.3
73.3
56.7
72.3
66.0
39.7
57.3
50.0
39.3
41.0

71.0
68.7
66.7
78.0
36.3
62.7
72.0
71.3
52.7
39.3
41.0
47.0
24.3
26.0

Support

Affordability

Demand
Drivers

Early
Adoption

RANK / ECONOMY

Addressable
Market

Overall Ranking

64.7
73.0
75.3
70.7
29.3
66.7
80.3
77.7
54.3
31.3
53.0
48.7
43.7
34.7

OVERALL SCORE

56.6
73.8
72.3
58.8
59.0
73.0
46.0
48.8
52.8
52.0
60.8
56.8
42.0
35.5

70.2
63.8
63.8
63.1
60.8
60.6
59.9
59.7
48.7
47.8
46.5
45.0
37.7
28.7

Source: Asia Cloud Computing Association 2015 http://www.asiacloudcomputing.org/research/smecloud2015

The ACCA study is among the first to offer comparable statistics across these 14 Asia Pacific
markets economies in which SMEs comprise variously between 60-99% of all businesses,
50-98% of all employment and between 35-70% of GDP. Almost all governments across the
region are targeting both the SME sector as an engine of growth as well as the IT sector as
an engine of innovation.

Asia Cloud Computing Association | http://asiacloudcomputing.org

In this context, it is surprising that there are almost no comparable measurement

benchmarks to assess the effectiveness of current investments for SMEs, said Lim May-Ann,
Executive Director of the ACCA. Cloud computing promises to be the great leveller, bringing
enterprise grade tools and capacity within reach of SMEs. In addition, it will bring next
generation infrastructure benefits within reach of emerging economies without the need for
crippling capital expenditure.
SMEs in the Philippines are price-sensitive, and possess a limited budget for IT products and
services. Additionally, they have minimal to no dedicated IT staff, thus preferring solutions
that are easy to install and manage. Some of the key focus areas for cloud computing
adoption include big data and business analytics by BPO firms, technology startups focusing
on e-commerce, mobile applications, and transport applications, and solutions to simplify
back- and front-end challenges for retailers.
Cloud computing is being seen as particularly useful for smaller BPO players, with one
notable example being startup BPO software developer Orange & Bronze. As the smaller
players begin to expand with access to these enterprise grade tools, the single interface of a
cloud computing solution becomes particularly appealing to BPOs operating from the
Philippines, said May-Ann.
The Philippines government has focused quite heavily on new IT solutions enabling overall
economic growth, and supporting new cloud computing programmes, but much more has
to be done to increase awareness, readiness and capacity among SMEs. While factors like
the absolute and economic size of the market, and the contribution that the SME base makes
to GDP are important, our research shows that policy and market approach are just as vital,
said John Galligan, Chairman of the Cloud Segments Working Group, and also Regional
Director Government Relations, Asia Pacific for Microsoft.

For more information or interview requests, please contact Mr Krish Raghav at krish@trpc.biz
or +65 8525 6649
***

Asia Cloud Computing Association | http://asiacloudcomputing.org

About the ACCA SME Cloud Computing Attractiveness Index

This Index provides an evaluation of the attractiveness of cloud
computing to small and medium enterprises (SMEs) by ranking
the 14 Asia Pacific economies currently being covered by the
Asia Cloud Computing Association.
The Index consists of an evaluation according to five key
criteria: 1) the size and attractiveness of the addressable market;
2) the capability and suitability of the economy as an early
adopter of SME cloud based tools; 3) the existing and nascent
demand drivers in the market; 4) the relative affordability of
those tools in the economy; and 5) the levels of existing
government and financing support for SMEs, IT programs, and
cloud computing adoption. You can read and download the
full report at http://asiacloudcomputing.org/research/smecloud2015

About the Asia Cloud Computing Association

The ACCA is the apex industry association that represents stakeholders of the cloud
computing ecosystem in Asia. Our mission is to accelerate the adoption of cloud computing
through Asia Pacific by helping to create a trusted and compelling market environment, and
a safe and consistent regulatory environment for cloud computing products and services.
Through dialogue, training, and public education, the ACCA provides a vendor-neutral
platform to discuss implementation and growth strategies, share ideas, and establish policies
and best practices relating to cloud computing.
Contact us at info@asiacloudcomputing.org or http://www.asiacloudcomputing.org. You can
also join us on LinkedIn at http://is.gd/accacloud

Asia Cloud Computing Association | http://asiacloudcomputing.org