HONG KONG, CHINA�-�Media OutReach�-�17 January 2019 -�NTT Communications Corporation (NTT Com), the information and communications technology (ICT) solutions and
international communications business within the NTT Group (TYO: 9432), today
announced that 44 per cent of enterprises in Asia-Pacific are going ahead with implementing
a hybrid cloud without a formal strategy in place, according to a new 451
Research survey whitepaper.

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The survey whitepaper
"Going Hybrid: Demand for Cloud and Managed Services Across Asia-Pacific", was
commissioned by NTT Communications in partnership with VMware,
Inc. and conducted in six countries (Australia, Hong Kong,
Indonesia, Malaysia, Singapore and Thailand) in Q3 2018. It analyzes prevailing
technology choices, service provider preferences, service priorities, and
measures of hybrid cloud strategy and execution.

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Multi-cloud
has become the norm for most
enterprises
across Asia Pacific. Over 90 per cent of businesses surveyed have
multiple cloud environments with varying degrees of interoperability, and
more than half said they are already using a hybrid cloud. However, nearly 44
per cent have begun implementing hybrid cloud pilots without an overarching
hybrid strategy in place.

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"Alarmingly a
significant portion of large enterprises lack a formal hybrid-cloud strategy.
While they recognize the potential benefits, they underestimate the technical
complexity which may derail their business modernization efforts if they do not
have a future-proof hybrid cloud plan," said Dave Scott, Solutions Director,
NTT Communications Managed Services.

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Three different paths to hybrid cloud migration: cloud-first,
lift-and-shift, and refactor-and-shift

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Enterprises are found
to be actively considering an off-premises cloud as a critical component of
their business modernization strategy, while a hybrid cloud offers intermediary
steps in their business transformation. The survey found that more than half of
enterprises primarily emphasize migrating workloads from their internal
environments when deploying into a public cloud. However, there is no
predominate approach to their cloud migration - currently 28 per cent are
focused on a 'lift and shift' approach and another 28 per cent are refactoring
before moving. Another third are focused on the public cloud for net new
applications.

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In terms of hybrid
workload deployment plans, there is little uniformity across all the businesses.
In the next two years, CRM/sales and marketing (49 per cent), database and data
warehousing (48 per cent) and file and content storage (47 per cent) will be
the key focus for workloads to be shifted to hybrid cloud environments, up from
25, 28 and 28 per cent respectively. The strong traction indicates enterprises'
growing confidence in hybrid cloud to support their full spectrum of business
requirements and application portfolios.

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Managed services: course-correction required for enterprises
lacking a well-thought-out hybrid cloud and security strategy �

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Another key
consideration to drive hybrid cloud migration is security and compliance, which
95 per cent of enterprises rated as their top requirement. In addition, nearly half of respondents pointed to improvements in the consistency of
security policies across environments and better management of risk --
challenges that can emerge as businesses begin to employ multiple cloud
environments.

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Enterprises embarking
on a hybrid cloud strategy must ensure they build in security, but designing
and applying security for hybrid cloud is challenging, and a task that is
sometimes outside the capabilities of an organization's own security team. More
than 50 per cent of enterprises pointed to the fact that they use managed
services at some point in their cloud journey.

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Beyond security,
enterprises are also turning to managed services providers that support both
the initial design and implementation of hybrid cloud, as well as its ongoing
operation, to continually optimize workloads between various infrastructure
environments for the best mix of performance, availability, security and cost.

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"End-to-end managed
services and compliant-ready security management are increasingly becoming a
strategy to future proof a company's business growth paths," Scott added.

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All enterprises are
at different stages in designing, implementing and operating their workloads or
systems in a hybrid cloud environment. NTT Communications' Managed
Services is well positioned to offer smart, reliable and secure IT
solutions through their full spectrum of managed services. For instance, enterprises
can immediately tap into NTT Communications' global resources and capabilities
such as high-speed networks, a global footprint of data centers and cloud
services,�with only a single contract and one service-level agreement
(SLA).

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To learn more about
the state of hybrid cloud adoption in Asia Pacific, download the full report
here: www.nttcominsight.com/go-hybrid

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About the research

451
Research carried out an independent study of 464 IT decision-makers
representing Asia- Pacific's largest businesses in key vertical markets in Q3
of 2018. Businesses surveyed have 1,000-100,000+ employees, and more than
three-quarters have annual revenue of more than US$1 billion. Based on the
results of that study, this report provides insight about hybrid cloud planning
and management, drivers and inhibitors, and factors that are influencing the
choice of platforms, tools, technologies and managed services, both currently
and in the next couple of years.

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About NTT Communications

NTT
Communications solves the world's technology challenges by helping enterprises
overcome complexity and risk in their ICT environments with managed IT
infrastructure solutions. These solutions are backed by our worldwide
infrastructure, including industry leading, global tier-1 public and private networks
reaching over 190 countries/regions, and more than 400,000m² of
the world's most advanced data center facilities. Our global professional
services teams provide consultation and architecture for the resiliency and
security required for your business success, and our scale and global
capabilities are unsurpassed. Combined with NTT DATA, NTT DOCOMO, NTT Security,
and Dimension Data, we are NTT Group.

Please visit www.ntt.com.hk | www.hknet.com | www.facebook.com/nttca | www.linkedin.com/company/ntt-com-asia-limited for further
information.