Cloud

The Cloud Landscape in Asia: Major Milestones and Shifts

Analysis brief · December 27, 2025

Executive Summary

Cloud spending across Asia-Pacific exceeded $200 billion in 2026, with India and China leading growth rates while Japan and Australia maintained the largest absolute spend. Mid-market adoption accelerated notably. Small and medium businesses, historically slower to adopt cloud, now represent the fastest-growing segment for major providers.

Workload Patterns

Application modernization lags infrastructure migration. Many enterprises have moved workloads to cloud but have yet to refactor them into cloud-native architectures, leaving performance and cost optimization on the table.

Edge computing deployments grew, driven by latency requirements for gaming, IoT, and real-time applications. A recent analysis at a recent industry analysis found that Regional edge locations multiplied significantly.

Competitive Dynamics

Managed services for databases, Kubernetes, and AI workloads became the highest-margin segment. Providers with strong managed service portfolios showed better gross margins despite commoditization of raw infrastructure.

The partner ecosystem around cloud providers continued to grow. System integrators, consultants, and ISVs built around cloud platforms now represent a $100+ billion global economy in their own right.