Indonesia Cloud Market Size (2024 - 2029)

Indonesia Cloud Market Analysis

The Indonesia Cloud Market size is estimated at USD 2.13 billion in 2024, and is expected to reach USD 4.21 billion by 2029, growing at a CAGR of 14.52% during the forecast period (2024-2029).

• The major drivers that fuel the Indonesia cloud market growth are expanding digital transformation across firms, increasing Internet and mobile device adoption around the country, and increased consumption of big data. Next-generation industrial products will be cloud-enabled, and a cloud platform will be required to demonstrate digital business capabilities.
• According to a survey by Alibaba group titled Next-Generation Cloud Strategy in Asia, 94 percent of cloud service users in Indonesia hope to increase their investment in cloud technology by 2023, while 92 percent of other businesses in Indonesia plan to complete cloud migration in two years. More than half of the companies plan to increase investment in cloud computing, underlining the importance of cloud infrastructure in supporting business growth. In Indonesia, the focus of investment is on data and AI analytics (62 percent) and cloud computing (62 percent), followed by automation (58 percent) and the metaverse (51 percent).
• Moreover, enterprises are using a hybrid cloud to host their e-commerce website within a private cloud, where it is secure and scalable. For other uses, such as placing brochure sites, they utilize a public cloud, which is more cost-effective, and security is less of a concern for such data. This indicates the new cloud strategy is gaining traction in the cloud market. A mix of cloud and multiple cloud solutions is expected to emerge as a strong solution in the future.
• The players are introducing new cloud backup services to cater various needs of the customer. For instance, in September 2022, Google unveiled Cloud Backup and Disaster Recovery (DR), a service that enables clients to enable centralized backup management straight from the Google Cloud UI. Databases, applications, and cloud storage repositories are compatible with the new backup and recovery solution. Administrators can efficiently manage backups covering a variety of workloads with Google Cloud Backup and DR. They can also produce backups for file systems, databases (including SAP, MySQL, and SQL Server), and virtual machines (VMs) running on Compute Engine, VMware Engine, or on-premises VMware.
• On the contrary, Cloud service environments are complex, and complexity brings with it security risks. The public cloud is the most significant risk for organizations transitioning to a hybrid model. This is because security in the public cloud is API-driven, and the security practices employed may need to be improved. 
• After all, developers unfamiliar with the organization's security requirements set up the security protocols. Migrating from a private or public cloud service infrastructure or an in-house data center to a cloud service system is time-consuming and resource-in-depth. The existing approaches and workload should be portable and operable in an on-premises framework and a third-party-managed public cloud.

Indonesia Cloud Industry Segmentation

Cloud technology refers to servers used over the Internet and the software and databases that operate on those servers. Cloud servers are placed in data centers all over the globe. Using cloud computing, users and businesses cannot handle physical servers or run software applications on their machines. 

The Indonesia cloud market is segmented by type (public cloud (Saas, Paas, Iaas) and private cloud), by organization size (SMEs and large enterprises), by end user industry (IT and telecom, BFSI, retail and consumer goods, manufacturing, healthcare and life sciences, government, and other end user verticals), by region (Java, Sumatra, Kalimantan, and Other Regions). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.