The cloud market in the Philippines could grow solidly to $2.8 billion in 2025, according to a recent study conducted by data analytics and consulting firm GlobalData.
For this reason, the GlobalData study "Why the Philippines Should Be the Next Destination for Hyperscalers," said the Philippines is the next logical destination for global tech giants - hyperscalers looking for geographic expansion.
The Philippines has a strong legacy in the business process outsourcing (BPO) industry, future of work programs, and hyperscale roadmap," the study added.
The study cited several factors such as the country's success in terms of outsourcing, government support, business climate, accelerated cloud adoption, and significant steps for sustainability.
The Philippines, one of the global leaders in BPO, currently holds about 10 to 15 percent of the global market and posts an annual growth rate of 10 percent over the past decade.
This generates a strong demand for cloud and artificial intelligence, driven by the shift of companies to remote working setup and the use of data and analytics to understand the online customer journey.
More enterprises in the country are also moving to the cloud, adopting hybrid operations and vertical applications.
Significantly, the GlobalData study showed that 29 percent of the businesses surveyed are considering edge computing within the next three years.
This represents another major opportunity for hyperscalers and telecommunication providers.
“The digital economy in the Southeast Asian region is clearly at the cusp of unprecedented growth, and the Philippines is leading the way and growing the fastest,” noted Gary Ignacio, PLDT Enterprise VP & Sector Head for Strategic Business Development.
“Many businesses need the speed and agility of hyperscale solutions, ideally with the security and regulatory compliance that only locally hosted applications can offer to the various industry verticals operating in the Philippines,” the research stated.
The growing support of the government to develop the hyperscaler sector likewise creates the right environment to drive market traction and growth.
This includes implementing incentives program for hyperscalers expanding their operations in the Philippines, passage of relevant laws on data privacy and security, and the thrust for a cloud-first strategy across the public sector, among others.