In 2012 Asia moved away from being seen solely as a manufacturing hub and into the global spotlight as a centre for innovation. The region also continued to grow, unlike other parts of the world that suffered economic headwinds. As the year comes to a close, Intel and its executives highlight key themes for the year ahead in Asia. The following comments may be attributed as indicated.
Emerging Asia & Connected Populations
Our world has seen massive change over the last few years. Economic instability has rocked developed markets, while emerging markets have experienced economic growth that has contributed to a healthy increase in living standards.
“In 2013 new populations will come online; 300 million people in the Asia Pacific are currently not digitally aware and in 2013 these populations will start looking for ways to connect.” – Philip Cronin, director of regional sales organization, Intel Asia Pacific
While emerging markets growth rates are slowing, living standards will continue to see improvement. Asia Pacific is home to over 45 percent of the world’s youth , amounting to around 700 million people below the age of 25, many of whom have grown up in a world of always-on connectivity. Likewise, as Asia’s middle-class continues to expand fast, with a propensity to adopt technology and high expectations of connectivity.
Market watchers believe that emerging markets across Asia will represent will account for close to half of expected global GDP growth between 2010 and 2025 . McKinsey2* estimates that by 2025, annual consumption in emerging markets will reach US$30 trillion—the biggest growth opportunity in the history of capitalism.
Enterprises will also experience resurgence in connectivity, as employees look for ways to create connections and form new efficient ways of working with colleagues.
“The consumerization of IT will continue, not only with the trend of taking your own device to work – driven by enterprise grade tablets – but also by employees looking for new ways to connect and share with colleagues. Secure enterprise class social networks will be sought after across Asia.” – – Uday Marty, managing director, Intel South East Asia
Asian Innovation for the World
According to The Economist*, multinationals are already beginning to take ideas developed in (and for) the emerging world and deploying them in the West.
“In 2013, we expect the adoption of technology in emerging markets to propel innovation.” – Philip Cronin, director of regional sales organization, Intel Asia Pacific
Corporations are also devoting large portions of corporate budget to IT-led innovations. A recent IDC* survey showed that such investments in Indonesia, Malaysia, Singapore and Thailand are expected to reach an average of 39.8 percent of corporate budget spends in 2013.
“As mobile devices become prolific in emerging markets and as software platforms and applications become decentralised, we can expect to see a new crop of innovators developing applications relevant to their peers. These won’t simply be a localisation of global ideas or content, but will present new concepts for local and global use.” – Uday Marty, managing director, Intel South East Asia
The Future of Touch and Mobile Devices
Some countries in Asia are bypassing traditional input methods. New generations are experiencing computers for the first time using intuitive input methods such as touch. Many commentators believe that traditional input devices such as keyboards and mice will be challenged by new input methods, touch to begin with but eventually gesture recognition.
“2013 will be the year that consumers experience touch ramping as a mainstream feature in notebook and all-in-one PCs. Voice and gesture technologies will also build momentum and be sought after as new ways to interact with computing devices including PCs.” – Uday Marty, managing director, Intel South East Asia
Tablets, convertibles and new devices will enter the market en-mass, blurring the boundaries between PCs and tablets. According to Gartner *, by 2015 media tablet shipments will amount to around half that of laptops.
“As tablets become more popular at work, people will covet improved processing power. People will look to tablets for productivity, moving from consumption to multi-tasking; placing greater processing demands on their devices.” – Philip Cronin, director of regional sales organization, Intel Asia Pacific
“Technology companies and manufacturers will need to tap into the psyche of Asian consumers and respond with relevant and desirable products, now more than ever. Consumers will be inundated with mobile device options. A range of screen sizes, processing power and weights will enter the market in 2013 and manufacturers will rely on consumers’ choices to identify the most popular devices for future production.” – David McCloskey, director of product marketing and business operations, Intel Asia Pacific
“The quality of the consumer experience will be key to the success of a device. In 2013 we will see more manufacturers completing verification programs and user testing prior to releasing devices.” – David McCloskey, director of product marketing and business operations, Intel Asia Pacific
As mobile adoption rates continue to skyrocket across Asia, Intel believes that this will allow people to create, share and consume content anywhere, anytime. Intel examined how people share and consume information online and how certain digital sharing behaviours impact culture and relationships. The concept of digital over-sharing, or sharing too much personal information online, has appeared as a growing trend across the region.
“As more mobile internet users join the online community digital over-sharing will be a trend that reaches millions across the region. In our most recent research we uncovered how comfortable people are with over-sharing. People in Australia are some of the region’s most fearful of over-sharing and the digital legacy it leaves, whereas people in China are comfortable to be ‘an open book’ online.” – David McCloskey, director of product marketing and business operations, Intel Asia Pacific
Governments Goals for 2013; Education and Entrepreneurialism
In 2013 governments must make modern policies, systems and investments in their nation to maintain and encourage development. National broadband plans underway in Singapore, Australia, New Zealand, Malaysia, among others, and will encourage a connected, inventive population.
“Encouraging entrepreneurs and innovation within their country will be a focus for governments across the region. Investing in the right infrastructure and industry partnerships can encourage, connect and support entrepreneurs. In 2013 an economy with a diverse and dynamic collection of entrepreneur will contribute to local and global productivity.” – Philip Cronin, director of regional sales organization, Intel Asia Pacific
The Global Innovation Index 2012 took the opportunity to remind governments that policies to promote innovation are critical to sustaining economic growth. The report noted a need for the BRIC countries (Brazil, Russia, India and China) to invest further in their innovation capabilities to live up to their expected potential. Meanwhile, Intel believes that South East Asia will be one of the most exciting growth regions globally.
“2013 will see increased focus in the future; education transformation will be crucial for South-East Asia. Governments and institutions will invest in developing strong educational frameworks to create a skilled labour force for the future.” – Uday Marty, managing director, Intel South East Asia
SMEs Get Technical
“Small to medium enterprises in Asia will represent an area of explosive growth over the next three years. Not only will additional small to medium enterprises appear but, existing small to medium enterprises will start adopting technology into their work; ushering in a new wave of connected businesses, entrepreneurs and employers.” – Uday Marty, managing director, Intel South East Asia
A Kauffman foundation* study of 30,000 young South Koreans revealed strong appetite for entrepreneurial success among young Koreans. The number of “one-man creative enterprises” in the country has risen sharply to around 235,000. Meanwhile in India, when asked why they set up their own business, the overwhelming majority of entrepreneurs name “being my own boss” as primary motivation.
Cloud Will Engulf the Enterprise in 2013
Cloud computing has been a source of discussion for several years, and is still growing fast – traffic worldwide is set to grow six-fold by 2016 . This growth will be led by the Asia Pacific region which will generate the most cloud traffic at 1.5 zettabytes annually. To put this into context, if the 11oz coffee cup on your desk was equal to one gigabyte, then one zettabyte would have the same volume as the Great Wall of China.
“2013 will be a tipping point for cloud deployment in the APAC region. Systems and information that have been traditionally trapped in silos will begin to be freed. Organisations and IT managers will finally realize their cloud adoption plans, moving from years of preparation to an ideal future of cloud computing.” – Nick Knupffer, marketing director, Data Center and Connected Systems Group, Intel Asia Pacific and China
Cloud computing is gaining momentum in the Asia Pacific according to an IDG* survey : 31 percent of IT decision makers in Asia plan to implement cloud environments in the next 12 months; 26 percent look to pilot-test cloud projects; and 28 percent have implemented cloud in one or more location.
Cisco Systems’* Global Cloud Index indicates that the region will process the most cloud workloads (40.6 million zettabytes), accounting for 36 percent of global cloud workloads. With this expected workload increase, companies who are still dealing with legacy RISC* infrastructure, will need to look for more efficient, cost-effective solutions to handle increasing workloads and mission critical applications.
“Over the past decade we have seen growth in x86-based infrastructures and a decline in RISC* or Mainframe infrastructure. In 2013, as more IT managers face upgrading legacy systems, we’ll continue to see organisations migrating to Intel’s x86 infrastructure for mission critical and cloud workloads.” – Nick Knupffer, marketing director, Data Center and Connected Systems Group, Intel Asia Pacific and China
“Cloud users will also begin to demand standardized, open, interoperable platforms for cloud computing. As businesses begin to rely on the cloud for general business operation, the demand for unrestricted use, bringing data in and out of the cloud, will become a focus in 2013.” – Nick Knupffer, marketing director, Data Center and Connected Systems Group, Intel Asia Pacific and China
