KUALA LUMPUR: Malaysia’s cloud adoption is poised to surge beyond 50% in 2025 on the back of demand from enterprises for optimisation, innovation and agility, according to eCloudvalley Digital Technology, a cloud solutions provider and Amazon Web Services (AWS) partner.

Sandy Woo, eCloudvalley Malaysia country director, said enterprises are increasingly moving to the cloud for optimisation and the cloud platforms enable greater innovation.

“The outlook is really good. It’s poised to grow, in my opinion, above 50% in terms of adoption, and there are many factors behind it,” she told a media conference at the unveiling of eCloudvalley’s strategic roadmap for the year today.

Woo said AWS’s recent launch of a data centre in Malaysia is alleviating concerns over data sovereignty which also accelerates cloud adoption.

“AWS’s local data centre is a pivotal development, particularly for banks, telecoms, and government agencies that previously hesitated due to data sovereignty concerns. So now, with the investment and commitment from cloud players like AWS, it sort of gives them the assurance that the data is within reach and hosted locally,” she said.

Woo highlighted several advantages of cloud computing, including its agility, scalability, and pay-per-use model, which allows businesses to better manage costs and resources.

“The competition is heating up, which makes us very excited about the growth of cloud. Most of the industry will feel the competition is being heated up. If they don’t go to cloud, they are being left behind.”

As for risk appetite, companies must determine how much data and which applications they are comfortable placing on the cloud.

Woo said cloud works very well for startups, as they do not have the legacy of old storage, network infrastructure, servers, or on-premise data centres.

She stressed that businesses with a legacy footprint still need to propel themselves towards innovation. “They must have a good blueprint to migrate and balance the cloud.”

As for eCloudvalley, Woo said the company is poised to grow its talent base in Malaysia.

eCloudvalley in Malaysia has expanded from a single employee during the Covid-19 lockdown to a team of 65, serving more than 300 clients, including ZUS Coffee, Aerodyne and Sapura Energy.

“In Malaysia, we are very focused on AWS. All our competency, our talent base, our track record, our deployment - everything is on AWS for now,” she said.

In August last year, AWS launched its Asia-Pacific data centre in Malaysia to enable local businesses and organisations to run applications closer to home while enhancing efficiency.

As part of its long-term commitment, AWS plans to invest an estimated US$6.2 billion (RM29.2 billion) in Malaysia through 2038. The construction and operation of the data centre are projected to contribute approximately US$12.1 billion to Malaysia’s gross domestic product.