An IDC study commissioned by Akamai warns traditional cloud models cannot meet AI’s scale and speed, predicting 80% of APAC CIOs will adopt edge services by 2027, with edge-linked cloud spending hitting US$29 billion by 2028
As generative AI shifts from experimentation to mainstream adoption, enterprises in Asia-Pacific (APAC) are overhauling their IT strategies to address performance, compliance, and cost pressures. A new IDC research report commissioned by Akamai Technologies argues that traditional cloud models no longer suffice, with “The Edge Evolution” emerging as the next phase of digital infrastructure.
Cloud alone can’t keep up
The report highlights that centralised cloud infrastructure struggles to handle the scale and real-time demands of AI workloads. By 2027, IDC predicts 80% of CIOs in APAC will adopt edge services offered by cloud providers to power AI inferencing at scale. Edge-linked public cloud services are forecast to grow at a compound annual rate of 17% through 2028, reaching US$29 billion.
This shift is driven by the need to combine the scalability of the cloud with the proximity of edge computing, delivering lower latency and greater compliance with local data requirements. IDC notes that this hybrid approach will give businesses the agility to innovate while maintaining control over costs and regulatory obligations.
AI adoption exposes infrastructure gaps
IDC found that 31% of organisations in APAC already have generative AI in production, while 64% are trialing applications in customer-facing and internal environments. However, rapid adoption is revealing bottlenecks. Nearly half of enterprises cited difficulties managing multicloud environments, while 50% of the region’s largest organisations face compliance challenges. Unpredictable costs were flagged by 24% of respondents, and latency issues were identified as a critical barrier for scaling real-time AI.
“AI is only as effective as the infrastructure supporting it,” said Parimal Pandya, Senior Vice President and Managing Director, Asia-Pacific at Akamai Technologies. “Enterprises are embracing distributed, edge-first models to ensure performance, cost efficiency, and security. Akamai’s global edge platform is designed for this transformation.”
Daphne Chung, Research Director at IDC Asia-Pacific, added: “Generative AI is moving beyond pilots into enterprise-wide deployments. Infrastructure strategies must evolve to meet the demands of intelligence, compliance, and scale.”
Country-level adoption trends
The research identifies distinct regional patterns. In China, 37% of enterprises already use generative AI in production, while 96% rely on public cloud infrastructure, supported by growing edge investments. Japan is accelerating adoption despite maturity gaps, with 84% of firms expecting AI disruption within 18 months. In India, cost concerns and talent shortages are driving edge expansion into tier-2 and tier-3 cities. Meanwhile, ASEAN organisations are building edge-first strategies to extend AI capabilities beyond capital hubs and strengthen control over sensitive data.
IDC concludes that enterprises will need to modernise with interoperable, cloud-connected infrastructure and Zero Trust frameworks, supported by strong partner ecosystems, to scale generative AI securely and sustainably.
