The cloud computing market in Thailand is expected to reach 15 billion baht in value by 2024 with a compound annual growth rate (CAGR) of 19% from 2018, powered by digital transformation of businesses in the wake of the pandemic, says global research firm IDC.
An IDC report says digital transformation should spike cloud computing in Thailand.
Salesforce, a global cloud-based software provider, says the use of cloud computing by customers in Thailand will add 50 billion baht in new business revenue to the local economy over a six-year period.
"The pandemic has accelerated digital transformations that were once planned to take place over 1-2 years into digital imperatives that must be executed overnight," said Sujith Abraham, senior vice-president and general manager for Asean at Salesforce.
"The pandemic has demonstrated the absolute need for businesses to embrace digitisation."
According to Mr Abraham, Thailand's technology infrastructure has developed significantly in recent years, giving businesses the opportunity to fully reap the economic benefits of innovations like cloud computing.
Referring to the IDC report on "The Salesforce Economic Impact", he said the cloud computing market in Thailand is expected to rise from 6.3 billion baht in 2018 to 15 billion in 2024. The report takes into account the impact of the pandemic.
The paper said Salesforce and its network are expected to create 24,260 direct jobs among Salesforce clients in Thailand during the six-year period.
The direct jobs created are expected to foster an additional 33,570 indirect jobs through supply and distribution chains.
Because organisations that spend on cloud computing subscriptions also spend on ancillary products and services, the Salesforce network in Thailand in 2019 was 4.7 times the size of Salesforce itself, according to the paper. By 2024, it will be 7.1 times.
According to IDC, spending on cloud computing in 2024 is expected to be less than 5% of total IT spending, which suggests plenty of room for future growth.
Mr Abraham said the path of Thailand's economic recovery lies with cloud computing adoption, with digitalisation becoming increasingly vital as the country enters a new phase.
Referring to the roll-out of 5G, he said it will help businesses adopt novel technologies such as artificial intelligence and analytics.
"Thai businesses need to meet heightened consumer expectations and demands by harnessing the power of 5G and the cloud if they want to be competitive in the new normal," said Mr Abraham.
To help businesses navigate during the crisis, Salesforce has launched a set of free rapid response solutions that can help businesses stay connected with employees, customers and partners.