NTT Communications leads APAC telco cloud market

NTT Communications is ahead in the APAC telco cloud market (Image Arand / iStockPhoto)

Japanese telecommunications service provider NTT Communications is the market leader in the Asia-Pacific telecom cloud segment, and is well placed to maintain its position, according to GlobalData.

In a new report, the analyst company said NTT Communications has carved out a lead due to its software-defined capabilities, wide network and data center coverage and an expanded portfolio thanks to its integration with sister companies.

According to the report, the cloud market landscape is evolving in the Asia-Pacific region. While web-scale players such as Amazon, Google, Microsoft and Alibaba are continually expanding in the regions, telecoms operators are carving out a niche by offering integrated network and cloud services.

NTT Communications is the leader in the APAC telco cloud services market with the highest overall score based on four categories - cloud portfolio, data center footprints, software-defined infrastructure and supplemental services.

“Cloud products offered by telcos are comparable in terms of technical capabilities and ecosystem partners,” GlobalData analyst Alfie Amir said.

“What differentiates NTT Communications from the rest is its wide footprint and presence in the region to address data residency and latency requirements, as well as its software-defined capabilities which offer better workload management and service orchestration.”

Australia-based Telstra and France-based Orange Business Services are in second and third place. While these providers have similar capabilities to NTT Communications, they are slightly behind with their footprints in the region.

But they are rapidly closing the gap, with Orange Business Services having partnered with Huawei to drive expansion in the region – particularly in China, and Telstra recently announcing a partnership with Equinix for direct access to more infrastructure globally.

“The APAC cloud market is still growing fast as the market emerges, while the competition is getting more intense driven by the web-scale players,” Amir said.

“Telcos need to continue to leverage their network strengths and at the same time, include latest technologies such as self-service tools, analytics and AI in their offerings to gain competitive advantage.”

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