Japan's NTT Data expects demand for sovereign cloud in APAC to grow rapidly [Q&A]

NTT DATA, a global company in digital business and technology services, expects demand for sovereign cloud in APAC will grow rapidly looking ahead, according to its executive.

“Demand for sovereign cloud in APAC will grow rapidly due to stricter regulations, data sovereignty, and privacy concerns. NTT DATA’s long term strategy centers on balancing control, compliance, and agility across data, operational, and technical sovereignties,” Ben Tulloch, APAC lead for Cloud, Security, Network & Collaboration Services at NTT DATA told TNGlobal in an interview.

With expertise in hybrid and private clouds, NTT DATA helps clients maintain data autonomy and meet regional regulatory requirements using tailored strategies, he said.

NTT DATA promotes multi-cloud adoption to avoid vendor lock-in, offering resilient, flexible cloud architectures. It addresses fragmented cloud offerings, complex regulations, and skill gaps through advisory, training, and managed services, especially for finance, government, and healthcare sectors.

NTT DATA announced last month its NTT Data business unit for Microsoft Cloud to meet rising demand for secure, AI-driven enterprise cloud transformation. The global unit brings together NTT DATA’s deep industry and technical expertise in Microsoft Cloud, security and AI solutions to accelerate cloud modernization, scale Agentic AI and navigate complex sovereignty and compliance requirements.

With a presence across more than 50 countries and a deep bench of Microsoft certified specialists holding 24,000 certifications, the NTT DATA business unit for Microsoft Cloud helps clients accelerate digital transformation globally. This unit brings together technical expertise in cloud-native development, cybersecurity, observability and Agentic AI, while staying closely aligned with Microsoft’s technology roadmap and engineering teams.

Ben Tulloch, APAC lead for Cloud, Security, Network & Collaboration Services at NTT DATA

In the interview, Tulloch also shared the strategic importance of this new Global Business Unit with Microsoft Cloud for NTT DATA, challenges enterprises in APAC face when trying to move Agentic AI solutions from a proof-of-concept phase to a production environment, how does the Global Business Unit help enterprises rapidly scale Agentic AI solutions into production environments, among others.

NTT DATA – a part of NTT Group – is a global innovator of IT and business services headquartered in Tokyo. The company help clients transform through consulting, industry solutions, business process services, IT modernization and managed services.

Below are the edited excerpts of the interview:

Can you elaborate on the strategic importance of this new Global Business Unit with Microsoft Cloud for NTT DATA, specifically within the APAC region?

The Global Business Unit for Microsoft Cloud is a strategic advancement for NTT DATA, especially in APAC, undergoing fast digital transformation across sectors like finance, manufacturing and public services. By combining NTT DATA’s deep industry expertise with Microsoft’s advanced cloud, AI, and security technologies, the unit enables enterprises to modernize infrastructure, scale intelligent automation, and meet evolving regulatory demands, leveraging over 24,000 Microsoft certifications.

This close alignment with Microsoft’s technology roadmap enables clients to accelerate cloud modernization, scale Agentic AI (a model of autonomous, multi-agent artificial intelligence) and address regional data sovereignty and compliance challenges.

The unit enhances operations, collaboration, and digital experiences by delivering secure, scalable solutions like Microsoft 365 Copilot and Azure AI Foundry. Operating in over 50 countries, it combines global innovation with localized expertise to empower APAC
enterprises to confidently accelerate their digital journeys and maintain competitive advantage.

It integrates sales and delivery teams with Microsoft to maximize impact across regulated and diverse industries. Key focuses include Agentic AI at scale, modern cloud solutions, developer acceleration through a microservices library of 500+ industry accelerators, enhanced digital experience with Microsoft 365 and Dynamics 365, and sovereign cloud adoption. This unit also exemplifies NTT DATA’s role as an experienced transformation collaborator aligned to the evolving needs of APAC’s dynamic market.

How does the Global Business Unit help enterprises rapidly scale Agentic AI solutions into production environments, with nearly 100 enterprise opportunities generated in 90 days?

The Global Business Unit accelerates enterprise scaling of Agentic AI by providing end-to-end cloud-managed services—from strategy and advisory to secure deployment and AI governance. In just 90 days since launching its Agentic AI Services, the unit generated nearly 100 enterprise opportunities, reflecting strong demand for scalable AI automation.

Leveraging Microsoft’s Azure AI Foundry and AI Agent Service, NTT DATA helps clients quickly build, deploy, and orchestrate multi-agent AI models that enable real-time communication and intelligent workflows. This close collaboration ensures secure, compliant
migration from pilot to production.

The approach delivers measurable benefits such as up to 65 percent reduction in human-handled tickets, 100 percent order automation, and up to 40 percent cost savings through optimized AI operations. With over 25 years partnering with Microsoft and recognized leadership in GenAI services, NTT DATA empowers enterprises across APAC to realize the full potential of Agentic AI in business operations.

Can you provide a specific example or a hypothetical use case of an Agentic AI solution that the Global Business Unit has helped an APAC client scale into production?

NTT DATA’s Global Business Unit for Microsoft Cloud helped Newell Brands scale an Agentic AI solution using Microsoft 365 Copilot and Azure AI Foundry. The multi-agent AI models enabled real-time voice communication and intelligent orchestration for customer engagement, transitioning from pilot to production while ensuring compliance and security with regional data regulations. This led to improved operational resilience and automation at scale.

Beyond Newell Brands, NTT DATA’s Agentic AI Services created nearly 100 client opportunities within 90 days, including engagements with Hyster-Yale Group, leveraging both pro-code and low-code AI. NTT DATA’s strategic, outcome-driven advisory supports clients in discovering innovative AI use cases and reimagining operations with multi-agent AI models.

NTT DATA is an Azure Expert Managed Service Provider, holding the highest Microsoft certifications globally, with over 4,000 Azure-specific certifications. This extensive expertise underpins NTT DATA’s ability to deliver innovative, compliant business transformation solutions for clients like Shi, L’Oréal, and European Data Warehouse.

What are some of the biggest challenges enterprises in APAC face when trying to move Agentic AI solutions from a proof-of-concept phase to a production environment, and how does this new business unit specifically address them?

Enterprises in APAC face key challenges moving Agentic AI from proof-of-concept to production, including fragmented regulations, data sovereignty, legacy system integration, and uneven AI skills and cloud readiness. While markets like Singapore and Australia lead in AI maturity, others are still building foundational capabilities. NTT DATA highlights that many APAC markets remain in early AI adoption stages with limited infrastructure and expertise. This uneven maturity creates gaps in capability that enterprises must overcome to
scale AI solutions effectively.

The Global Business Unit leverages deep industry and technical expertise with Microsoft’s cloud, security, and AI technologies. The unit aligns closely with Microsoft’s engineering teams to build secure, scalable, and compliant AI solutions, accelerating AI agent deployment through Microsoft 365 Copilot and Azure AI Foundry. This collaborative approach helps clients overcome maturity gaps and scale Agentic AI from pilots to robust production with measurable outcomes.

The unit was launched to meet rapid market demand, supported by strong pipelines across industries, as AI adoption and cloud transformation accelerate globally, underpinned by forecasts of rising public cloud spending and AI deployments in IT and business operations.
This approach enables APAC enterprises to move from experimentation to operational impact with confidence.

How developers benefit from a microservices library of 500+ industry accelerators, reducing implementation time and enabling faster rollout of cloud-native applications across multiple markets?

Developers working with NTT DATA benefit from a microservices library of over 500 industry accelerators on the Industry Cloud platform. These prebuilt accelerators offer reusable modules and best practices aligned with Microsoft Azure, enabling rapid prototyping and deployment of cloud-native applications. This reduces implementation time and complexity while ensuring compliance across multiple APAC markets.

Clients using these co-created accelerators experience 30% faster time to market, up to 75 percent better application performance, and 20-30 percent cost reductions. The cloud platform ensures easy access and seamless integration.

A notable example is the Track and Trace Logistics Management Application used by manufacturing, automotive, and logistics clients. It reduces fleet management costs by providing real-time dashboards on fuel efficiency, route schedules, and maintenance. Live tracking via sensors and video enhances supply chain visibility, while Azure OpenAI automates compliance documentation, simplifying adherence to regulations.

Overall, these accelerators accelerate development cycles, enhance agility, and drive faster rollout of tailored, compliant enterprise solutions, forming a key part of NTT DATA’s cloud platform services integrated with AI and hyperscaler partnerships.

Could you elaborate more on how NTT DATA, as one of the few Microsoft partners collaborating on Sovereign Cloud specialization, helps APAC clients meet sovereignty and compliance requirements to unlock cloud transformation for regulated industries?

As one of the few Microsoft partners with Sovereign Cloud specialization under the Microsoft AI Cloud Partner Program, NTT DATA uniquely supports APAC clients in regulated industries like finance, government, and healthcare. Leveraging specialized Azure services,
local data centres, and a robust network of experts, NTT DATA ensures secure, compliant storage and processing of sensitive data aligned with local regulations.

NTT DATA simplifies sovereign cloud adoption by combining global compliance insights with local execution capabilities, enabling enterprises to accelerate AI-enabled cloud transformation while maintaining privacy, security, and governance. This trusted partnership reduces time to market by up to 30 percent, empowering APAC organizations to achieve operational resilience and compliance in a complex cloud and regulatory landscape.

Through close collaboration with Microsoft’s engineering, sales, and delivery teams, NTT DATA designs, builds, secures, and migrates solutions that meet unique sovereignty objectives, addressing challenges like multi-cloud management, data residency, and internal capability gaps. This comprehensive approach positions NTT DATA as a reliable ally for APAC enterprises to adopt sovereign cloud solutions that balance agility with regulatory assurance.

Looking ahead, how do you see the demand for sovereign cloud solutions evolving in the APAC region, and what is NTT DATA’s long-term strategy to remain a leader in this space?

Demand for sovereign cloud in APAC will grow rapidly due to stricter regulations, data sovereignty, and privacy concerns. NTT DATA’s long term strategy centers on balancing control, compliance, and agility across data, operational, and technical sovereignties. With expertise in hybrid and private clouds, NTT DATA helps clients maintain data autonomy and meet regional regulatory requirements using tailored strategies.

Partnerships with Microsoft and Google Cloud boost capabilities via AI frameworks like Takumi GenAI and the Smart AI Agent Ecosystem, enabling scalable AI-aligned sovereign cloud transformation. Emphasizing key management services and hardware security modules ensures robust data protection even in hybrid environments.

This positions NTT DATA as a trusted leader helping APAC enterprises drive innovation while ensuring compliance, and competitiveness.

NTT DATA, Microsoft team up to accelerate AI-driven cloud transformation in APAC