Slow cloud migration hinders digital transformation in Japan

Off-site data services comprise 4% of IT spending, a third that of North America

TOKYO, Oct 10 (Nikkei) - Japan is lagging other countries in cloud computing, with related investment accounting for only 4% of all information technology spending in 2021 -- a third that of North America -- and the gap is growing.

Cloud services have been slow to gain traction in Japan as many businesses cling to proprietary systems, a tendency that has seriously hampered digital transformation in the country.

The most common type of cloud computing is public cloud services, which enable users to access software applications and other tools without developing their own IT infrastructure, as the services are rendered through data centers operated by third-party providers. Once the systems break down, however, users cannot fix them themselves.

Companies around the world are taking advantage of the cost-effectiveness of cloud computing to facilitate digital transformation. "Cloud services have enabled companies to speed up product and other development," said Hiroyuki Nakayama, a partner at PwC Consulting. The services have allowed users to tap into cutting-edge technologies, including artificial intelligence and big data analysis. ...continue reading

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