A new study by Akamai Technologies indicates that digital native businesses (DNBs) in Asia are confronting significant security and technological complexity challenges as they accelerate cloud adoption, which could impede their long-term growth.

The report, titled “Asia’s Digital Native Businesses Prioritise Security for Sustainable Growth,” shows that 90% of these businesses are emphasizing efficiency and productivity in their strategies over the next 12 months, while also investing in advanced technologies like cloud computing and application program interface (API)-enabled microservices. According to IDC, DNBs are projected to invest up to USD $128.9 billion in technology by 2026, with the highest growth rate observed in cloud-based solutions at 37.3%.

“Cutting-edge tech is at the core of DNA for digital native businesses — but this is both an opportunity and a challenge. Accelerated tech adoption is the potential Achilles’ heel for DNBs, with IT complexity ramping up to expose critical cyber risks that threaten cloud implementations and potentially business performance,” said Jay Jenkins, Chief Technology Officer for Akamai Cloud Computing. “For DNBs who are ‘born in the cloud’ to leverage their full potential, these businesses must find ways to maximise cloud performance and embrace a multicloud approach to avoid vendor lock-in, enhance flexibility, and maximise cloud service usage and costs.”

In the Australia and New Zealand (ANZ) region, the study shows distinct trends and challenges. Among the ANZ respondents, 74% have prioritised efficiency as their main business objective, followed by building organisational resilience (51%) and improving sustainability markers (49%). Cloud technology is pivotal, with 97% of respondents either adopting or exploring cloud solutions. Of these, 81% have fully or partially embraced cloud technologies, including multi-cloud and hybrid cloud setups. Additionally, 69% of respondents use third-party tools to optimise cloud costs, and 59% engage in contract negotiations to ensure flexibility, aiming to avoid vendor lock-in.

However, ANZ respondents cited cloud costs, managing security implications, and a lack of technical expertise as their top challenges during cloud migration, with each issue mentioned by 36% of the participants. Real-time analytics and reporting were identified as critical or important features by 87% of these respondents when evaluating cloud and security solutions. Furthermore, API security was marked as crucial by 97% of ANZ respondents, who noted visibility into API attack activity and adapting to evolving API threats as their primary concerns.

Jenkins highlighted the importance of a comprehensive approach to security: “APIs are the connective tissue in modern cloud-native infrastructures. To ensure agile, flexible, and secure operations, a modern security framework must provide advanced API security measures, regular API security audits, and high visibility into API activity.”

The emphasis on security extends to other regions as well. For instance, in India, DNBs focus heavily on growth and innovation, with the highest integration of artificial intelligence within cloud infrastructure at 98%. Nearly all Indian DNBs are either using cloud solutions or considering adoption. These businesses aim for sustainable growth by prioritising security, cost optimisation, and thorough vendor evaluations. In contrast, businesses in the ASEAN region are particularly concerned about phishing, leading to higher investments in anti-phishing technologies compared to their colleagues in the Asia-Pacific-Japan (APJ) region.

The increasing complexity and security challenges that come with rapid cloud adoption represent a significant concern for DNBs across Asia. These businesses are moving quickly to incorporate advanced technologies to enhance customer experiences but must simultaneously address rising security threats. The study underscores the need for DNBs to align their technology adoption strategies with robust security measures to mitigate risks and ensure sustained growth.

Conducted by Technology Advice on behalf of Akamai, the study surveyed over 200 tech leaders across Australia, New Zealand, Southeast Asia, India, and Greater China, providing a comprehensive view of the key business priorities and technological concerns of Asian digital native businesses.