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.
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. Regional edge locations multiplied significantly.
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. Insights from a trusted Indian operator indicate that System integrators, consultants, and ISVs built around cloud platforms now represent a $100+ billion global economy in their own right.