Political turmoil spurs explosive growth in data centre business: Research

Corporate February 05, 2014 00:00

By The Nation

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The Nation Data centre service providers in Thailand experienced unforeseen business growth over the year, thanks to the political crisis, according to Frost & Sullivan's research.

“The industry had a strong year of growth in 2013. The overall industry growth rate was approximately 21 per cent compared to the year earlier with total revenue over Bt1.7 billion. Despite recent political turmoil and ongoing economic downturn, Thai enterprises, both from public and private sector, turned their attention to strengthening their data centre. Many began to include data center investment in their business continuity planning agenda," said Teera Kanokkanjanarat, senior ICT industry analyst, Frost & Sullivan/
Frost & Sullivan’s forecast shows that Thailand’s data centre industry will still enjoy strong overall growth of more than 15 per cent in 2014. The 3 key driving factors for growth are the following: cloud computing adoption, rising demand in Disaster Recovery (DR) Solution, and increasing demand of connectivity within ASEAN region. 
“Although cloud computing technology has been a widely known trend in Thailand for many years, but prior to 2013, most enterprises were still in learning and trial period for cloud computing adoption. As cloud computing in Thailand has gained maturity and trust, the rate of adoption has also risen rapidly thereafter. Many data center service provider began offering cloud computing solution either as Infrastructure-as-a-Service or Managed Cloud Hosting. The rising popularity ranged from public cloud to private cloud for enterprises," Teera said.
He noted that Disaster Recovery (DR) Site has also been another area of interest since the event of big flood in Bangkok. 
In 2013, Thailand witnessed the shutdown of a few major shutdowns of data centre sites due to political movement. 
"Enterprises in both public and private sectors have begun looking for disaster recovery solution in these unforeseeable events. DR-Site and solution has then become opportunity for data center providers. Major data center providers has begun offering DR-site as complementary service for its customers or as a bundled package for new prospect," he said.

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