CLOUD boom spurs collaboration

Tech April 06, 2019 13:01

By Asina Pornwasin
The Nation Weekend 

8,381 Viewed

True IDC and inet find global partners to seize on opportunities amid heady growth



WITH Thailand undergoing a digital transformation, digital economy and digital-native IT initiatives are the key forces in spurring a move by organisations to cloud computing.

            Aiding this shift, two giant Internet data centre service providers have joined with global partners to bring global cloud services to Thailand.

   According to Frost & Sullivan research in 2017, revenue in the cloud computing service market in Asia Pacific this year is forecast to reach US$24.6 billion. The market is expected to grow with an compound annual growth rate (CAGR) of 28.4 per cent to hit US$50.8 billion in 2022. 

In Thailand, the cloud computing service market in 2019 is expected to reach US$156.9 million and will continue to grow with a CAGR of 31.5 per cent; it is on track to reach US$341 million in 2022.

True IDC has partnered with Tencent, while Internet Thailand (INET) has joined with VMWare to offer advanced cloud services on Thailand. 

True IDC and Tencent are introducing an interactive and artificial intelligence-enabled cloud platform, offering a complete range of cloud platform services to the public and private sectors.

This collaboration puts Thailand among Tencent's 25 cloud infrastructures centres. Chang Foo, chief operating officer of Tencent Thailand, said that Thailand has enjoyed rapid growth in the digital economy and that is why Tencent has established a centre in Thailand to support the cloud platform. 

This collaboration will deliver a global cloud experience with a full array of vertical solutions and cutting-edge technology, including facial recognition, smart retail solutions and a content delivery network. 

It is the interactive and AI-enabled cloud platform that will drive Thai business to have access to high quality cloud services and help to strengthen the digital infrastructure of the nation, which is key to the economy in this digital age.

“We have a big team with 300 people in Tencent Thailand and together with local partner True IDC, we can localise and customise AI-enable cloud services to Thai customers,” said Foo. 

Supparat Sivapetchranat Singhara Na Ayutthaya, managing director of True IDC, said that it is expected to enable organisations, ranging from state agencies to financial institutions and enterprises, to have a strategic option to provide cloud solutions within the country on a global cloud platform.

In Asia Pacific, the key sectors for cloud computing include media, government, and small and medium-sized businesses. In Thailand, the key customers are telecoms, government, banking/finance/insurance, manufacturing, and education. 

He said True IDC’s revenue growth in 2019 will beat the market’s growth. In 2018, its cloud business was 63 per cent higher than market's growth of 25 to 26 per cent. Its data centre business grew 26 per cent, against the market's growth of 14 to 15 per cent. 

Meanwhile, INET and VMware are offering cloud services to organisations in Thailand. As the first VMware cloud provider in Thailand to offer the service, INET will offer VMware HCX Cloud Services that to empower organisations to transform legacy on-premises data centres into modern, multi-cloud environments for quicker 

app delivery and accelerated go-to-market. 

Morragot Kulatumyotin, managing director of INET, said that Thailand is rapidly transforming into a digital economy. INET is committed to providing the necessary tools for organisations to modernise their IT infrastructure and become more connected while digitalising their operations, Morragot said.

“We believe that VMware's best-in-class solutions will empower our customers to do so with ease and agility, building a flexible yet secure digital foundation required to excel in digital transformation," said Morakot.

Sanjay K. Deshmukh, vice president and managing director for Southeast Asia and Korea at VMware, said that Thailand is ready to take 

off and benefit the cloud computing services.

In line with the Thailand 4.0 vision, many Thai organisations are quickening their pace of digitalisation and modernising legacy IT systems. Information technology services spending in Thailand saw an increase of 9.2 per cent to reach Bt92.6 billion in 2018, according to research firm IDC. 

 Deshmukh said that VMware's partnership with INET is set to advance Thailand’s 4.0 blueprint further by riding on the shift towards hybrid- and multi-cloud environments, thereby enabling Thai organisations to embrace innovation and operate at scale.

Spending on the rise

The digital economy accounts for more than 61 per cent of Thailand’s gross domestic product. Spending is expected to reach Bt470 billion by 2021. Around 60 per cent of Thailand's IT spending will be on third platform technologies by 2022, it is estimated. 

Therefore, 70 per cent of the top 100 Thailand organisations will mitigate lock-in through multi-cloud/hybrid technologies by 2023. The Eastern Economic Corridor is expected to be Asean’s biggest digital innovation hub and it seeks to promote development of automotive intelligent electronic systems for advanced smart appliances, the Internet of Things and wearable electronics.  Thailand’s ambitions to be a world-class medical hub will see Thailand become a leading destination for pharmaceuticals and medical devices as it becomes a world-class provider of medical care. 

Ekpawin Sukanan, country manager for Thailand at Vmware, said that the new VMware HCX offering will be a game-changer for organisations looking at adopting modern data centre architectures by enabling seamless mobility at an unprecedented scale. 

“INET is a well-known ICT infrastructure provider. We believe ICT is well-placed to help usher Thai organisations into the hybrid and multi-cloud universe, enabling them to capture new business opportunities and catalyse growth in the digital economy,” said Ekpawin.