Dell Technologies commissioned IDC to conduct a comprehensive analysis of private cloud modernization trends across Asia Pacific (APAC), providing clear insight into how organizations in the region are preparing for the future of cloud. The results of this research are published in the IDC InfoBrief, Unlocking Business Agility Through Private Cloud Modernization in Asia/Pacific.
Why it matters:
As rapid shifts in customer expectations, business requirements, and technology adoption continue, A recent study commissioned by Dell shows that modernization and innovation in private cloud are fundamental to continued progress and competitive advantage.
The demand for adaptability has never been more pronounced. According to the IDC InfoBrief, nearly half of all organizations in Asia Pacific – 46%, have named cloud migration as their number one strategy for infrastructure modernization. In India, organizations are increasingly aligning modernization with hybrid cloud strategies to balance flexibility, performance, and control. However, fewer than half have fully implemented a robust hybrid cloud environment today, highlighting significant opportunity as enterprises prepare infrastructure for AI-driven workloads and sustainability priorities.
This reflects the increasing need for flexible, resilient IT environments that can evolve as business needs change, while supporting data-driven processes and next-generation workloads. The IDC InfoBrief outlines several key findings related to cloud strategies and IT modernization trends in the APAC region:
Key Trends: Demand for Flexibility, Control, and Open Architectures
Modern organizations require infrastructures that are dynamic, reliable, and ready to support new business models. The study highlights a widespread shift away from single-provider or rigid ‘cloud-first’ strategies, with leading enterprises instead embracing multi-hybrid cloud models. In India, infrastructure priorities are increasingly shaped by sustainability goals, modernization of data environments for GenAI readiness, and the need to accelerate innovation through digital platforms – reinforcing the shift toward flexible multi-hybrid architectures.
More than ever, financial control and operational agility are critical. Organizations in Asia Pacific recognize that multi-hybrid cloud enables better cost management and operational flexibility, helping manage workloads in a way that aligns with their strategic goals. Across Asia Pacific, organizations are increasingly reassessing workload placement strategies, with many planning some degree of cloud repatriation. In India specifically, this trend is especially pronounced – 96% of organizations indicate plans to repatriate some workloads from public cloud environments, primarily driven by cybersecurity, performance, and infrastructure optimization requirements.
The IDC InfoBrief also notes that a key strength of modern private cloud lies in disaggregated infrastructure. This approach gives businesses the power to scale compute, storage, and networking independently, avoiding the risks and costs of being locked into restrictive cycles. Simplification and automation across these domains support faster innovation, less complexity, and greater business value.
Modernization: A Non-Negotiable Business Imperative
The imperative to modernize is affecting organizations of all sizes. The IDC InfoBrief reveals that technology leaders across Asia Pacific face mounting pressures, not just from global competition, but from the need to continuously evolve to stay relevant. For many, this means reducing technical debt and ensuring that existing systems can integrate seamlessly with new cloud solutions.
A major challenge cited by respondents is the integration of legacy environments: The top three challenges in cloud journeys are integrating with existing infrastructure, maintaining cybersecurity and compliance, and managing complex hybrid or multi-cloud environments. In India, cybersecurity considerations are the single largest driver influencing workload placement decisions, alongside power and space availability and performance-latency requirements.
The IDC InfoBrief highlights that organizations are seeking open, scalable systems capable of growing with their changing needs. Having modernization strategies that avoid lock-in is essential, particularly as decisions made today will impact agility and cost efficiency tomorrow.
The Role of AI and Data-Intensive Workloads
Artificial intelligence is rapidly moving to the top of the business agenda, with C-suites across Asia Pacific increasingly focused on unlocking value from data. Modern AI initiatives require high-performance compute, scalable storage, and robust networking – capabilities that a well-architected private cloud can deliver.
The IDC InfoBrief shows that the maturation of enterprise AI is closely linked to hybrid and multi-hybrid cloud approaches. A cost-effective AI journey relies on infrastructure that is both agile and unified. Organizations see the hybrid cloud as the most practical path to deliver on AI’s promise while managing the scale, security, and compliance required by modern data workloads.
Furthermore, the study points out that the Asia Pacific region is just beginning to experience the impact of technical debt, which is expected to grow significantly. This makes future-proofing infrastructure a priority for IT leaders aiming to support innovation while maintaining control over costs and risks.
Partnering for Practical Progress
Dell remains committed to guiding organizations as they navigate these challenges. The company’s focus is firmly on understanding the needs of each customer and providing guidance that empowers teams across different industries and markets. From tackling the complexities of hybrid environments to enabling quick scale and integration of emerging technologies, Dell helps customers chart a path forward with confidence.
“Organizations are telling us that continuous modernization isn’t just an IT directive — it’s a business necessity,” said Venkat Sitaram, Senior Director & Country Head – Infrastructure Solutions Group, Dell Technologies India. “With the rise of multi-hybrid cloud and new demands from AI, companies want the freedom to choose, evolve, and innovate, backed by flexible, open architectures.” By championing these practical strategies, Dell supports a thriving tech ecosystem where organizations can reimagine what’s possible and achieve sustainable, real-world results.
