Cloud demands bucks broader ICT spending contraction in South Korea
Seoul has become the fourth region to house over four AWS availability zones, joining US East, US West and Tokyo.
This latest launch will bring AWS to 77 availability zones in 24 geographic regions worldwide. Amazon is meanwhile planning nine more zones and three more AWS regions, to be located in Indonesia, Japan and Spain.
The opening comes as a growing number of Korean businesses — the country is the world’s most wired — go deep on the cloud, including flagship carrier Korean Air, major telco SK Telecom, as well as cloud-native startups.
Principle Developer Advocate for AWS Channy Yun noted in a blog post that South Korean app providers are among the users requiring more and more cloud compute. They named Market Kurly, a shopping delivery app that has grown revenues from $2.9 million in 2015 to $157 million in the space of just three years.
According to statistic publisher 42 Matters, online Korean publishers have an average of 1.02 million downloads, which is considerably more than the average of most apps, normally coming in at around 150.33 thousand.
In fact, store intelligence data released by Sensor Tower shows that mobile games in South Korea grossed nearly $1.1 billion in South Korea across Google Play and the App Store during Q1 2020, which is up 6.6 percent quarter-over-quarter.
GlobalData Shows Resilience of Korean Cloud Demand
South Korea is estimated to witness a 5.4% decline in overall ICT spending in 2020, according to GlobalData, a data and analytics company.
An analysis of GlobalData’s Market Opportunity Forecasts Model puts ICT spend at $59 billion in 2020.
Anshuma Singh, Technology Analyst at GlobalData, comments: “ICT spending across all infrastructure segments – software, hardware and services – is estimated to fall in South Korea in 2020. However, cloud computing will be among the few technologies which witness strong growth due to the growing demand for the public cloud services among enterprises.
“Enterprises in South Korea are adopting remote working to ensure business continuity with minimal disruption and also as a control measure to prevent the virus spread. Owing to this, South Korea is witnessing a rise in demand for the teleconferencing technology and components, server chips and network peripherals, as organizations rush to build virtual offices.”
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