Report reveals Vietnamese cloud-based IaaS market is driven by the rising demand for cost-effective solutions – with demand shaped by several factors significant to the nation’s market landscape.
A report released by ResearchAndMarkets.com says the Vietnamese cloud-based IaaS market is anticipated to grow at a high CAGR to 2028.
Increasing efforts to digitize various sectors are one of the major drivers promoting cloud computing utilization in Vietnam, the report says.
Factors such as digitalization aspirations, data storage requirements, smartphone penetration and the repercussions of the COVID-19 pandemic are identified in the report as driving the use of cloud computing in Vietnam.
The Vietnam Cloud Based Infrastructure as a Service Market, Competition, Forecast & Opportunities, 2028 report says Vietnam is witnessing a rapid adoption of cloud technology – with its cloud-based IaaS market is one of the world’s fastest growing.
IaaS demand in Vietnam is identified in the report as shaped by several factors that are significant to the nation’s market landscape – and cost-effectiveness is a crucial consideration.
The report recognises cloud computing has become increasingly popular in Vietnam.
Government programs such as Digital Vietnam and Smart Cities support the use of cloud-based infrastructure in industries such as e-governance, healthcare, education and finance. But the report says increased demand for data processing and storage capacity is a crucial factor.
To store, handle, and analyze the enormous volume of digital data produced by organizations, consumers and the Internet of Things (IoT), a strong and scalable infrastructure is necessary.
Businesses can offload their data management requirements to cloud IaaS providers, who provide the necessary infrastructure, such as servers, storage, and networking resources, allowing them to focus on their core competencies.
The benefits of cloud computing, such as cost reduction, scalability, flexibility and improved collaboration, have, the report says, contributed to the growth of the Vietnam cloud-based IaaS market – a trend the report says is expected to continue in the coming years. Cost-effectiveness is recognised by the report as crucial consideration for Vietnamese businesses – not only startups and SMBs but larger enterprises who are facing budget constraints and limited resources.
Traditional on-premises infrastructure requires substantial upfront investments in hardware, software licenses, maintenance, and skilled personnel. In contrast, IaaS offers a pay-as-you-go model, allowing businesses to pay only for the resources they consume.
This eliminates the need for upfront capital expenditure, reducing financial barriers and enabling organizations to allocate their funds more efficiently. The scalability and flexibility of IaaS contribute to its
cost-effectiveness. Businesses can easily scale their infrastructure up or down based on their current needs, paying only for the resources they require at any given time.
This, in turn, eliminates the need to overprovision infrastructure and reduces wastage – leading to optimal resource utilization and cost savings.
IaaS providers offer on-demand availability of computer, storage, and networking resources, enabling businesses to respond quickly to fluctuating workloads and seasonal demands without incurring unnecessary costs.
Moreover, IaaS eliminates the need for upfront capital expenditure, reducing financial barriers and enabling organizations to allocate their funds more efficiently.
The responsibility for infrastructure management, including hardware provisioning, software updates, security patches, and backups, is shifted to the IaaS provider.
This significantly reduces operational costs associated with infrastructure maintenance, system administration, and IT staff requirements. Businesses can focus their resources and expertise on core competencies, innovation and value-added activities rather than infrastructure management.
Moreover, IaaS empowers businesses to utilize advanced technologies and services without incurring additional expenses. IaaS vendors typically offer a diverse range of value-added services, such as database management systems, AI/Machine Learning tools, analytics platforms and security services.
By accessing these services through the IaaS platform, businesses can leverage cutting-edge technologies without investing in specialized hardware or software licenses – making it a highly cost-effective option.
The report, then, stresses escalating demand for cost-effective solutions is a significant Driving factor for the Vietnam cloud-based IaaS market.
The pay-as-you-go model, scalability, flexibility, reduced infrastructure management overheads, and access to advanced services contribute to the cost-effectiveness of IaaS.
“As companies in Vietnam strive to optimize their IT infrastructure expenses and achieve better cost-efficiency, the adoption of IaaS is expected to continue its upward trend in the coming years,” the report says.
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