IPC Presents Leading ICT Industry Trends for 2016

Positive outlook for ICT innovations and gov’t support

Local cloud services and data center firm IPC (IP Converge Data Services, Inc.) has recently announced the top trends in the Philippine ICT industry for the year 2016. The leading shifts include increased use of hybrid cloud services, more innovative IT enterprises, and better government support for the IT sector.

Hybrid Cloud is on the Rise

IPC President Rene Huergas first shared that enterprises across Asia are fast adopting cloud services, with a preference for hybrid cloud models. The trend is rooted on the perception that the public cloud does not suit needs specific to Asian companies, steering the demand towards private cloud services. The current hybrid model involves storing all mission critical data in the private cloud, while non-mission critical data are stored into the public counterpart.

According to Frost & Sullivan more than half of Asian Enterprises intend to adopt hybrid cloud solutions in 2016, thus, stirring its growth rate by 20% from 2014 to 2019. This translates to a market value of $25.7bn up to $65.2bn in 2019.

“The Philippines ranks as the 33rd most attacked country in the world. A hybrid cloud, one that also includes a DDoS mitigation system, will best respond to the ICT demands of an Asian enterprise,” Huergas recommended.

More Innovative IT Businesses
2016 will see a more dynamic IT business sector in the Philippines. Earlier this year, IPC launched the Enterprise Sachet model as part of its thrust to enable startups and SMEs to manage the cost of IT resources, given the growing adoption of IT to automate and streamline business operations. It is a pay-as-you-go model that allows companies to make use of business productivity tools and compute resources on-demand and pay only for what is required at any given point in time, via online payment.

“IT businesses in the country are beginning to introduce great ideas, cloud-based or otherwise, to the market. This points to an industry that has the right values that will allow it to survive in a very competitive arena,” Huergas noted.

With today’s boom in personal and enterprise mobility, application development is at an all-time high. The Philippine Software Industry Association (PSIA) recently noted that software export sales has been growing at 31% over the years. This increase represents tremendous opportunity to drive demand for application server infrastructure as well.

Huergas stressed that IPC ensures that it is able to support this growth through the availability of physical and virtual infrastructure and compute resources, especially as more startups emerge in the application development space. He particularly noted the company’s newly installed data center in Sucat, which includes infrastructure that meet the unique requirements of enterprises in the Philippines.

More Political Support for A Better IT Environment
Current developments with regards to government support indicate a focus on security and regulation in IT. Primarily, Executive Order 189 Series of 2015 calls for the creation of the National Cybersecurity Inter-Agency Committee, which complements the Data Privacy Act of 2012.

The said committee is tasked to assess the country’s cybersecurity strengths and vulnerabilities, and to enhance public-private partnerships in the field of information sharing involving cyber attacks and threats.

“This development will help data-sensitive organizations and enterprises that offer cybersecurity services, such as DDoS mitigation. For our part, it will help us get a clearer picture of how cybercrime operates in the Philippines and allow us to provide better service,” presented Huergas.

Related to this, key industry members, including the BPO sector are pushing for a Department of Information and Communication Technology. Also existing is a proposal to create an office in the Department of Trade and Industry that will regulate e-commerce.

IPC expects these trends to leverage on current developments, particularly the steady development of broadband service in the country. Huergas noted how local telecom players have invested in upgrading the speed and reliability of their services. Both PLDT and Globe Telecom have injected funds into developing their 3G and LTE mobile broadband offerings.

“The trend of improvements in mobile and fixed broadband in the country spells good news to household and enterprise consumers. In the long-run, companies will offer more services online or adopt cloud services, capitalizing the new IT environment,” said Huergas.

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