Big service providers set out to educate market
Internet service providers and telecom operators have launched cloud-computing services in Thailand, with the aim of helping small- and medium-sized enterprises to adopt technology at a lower cost.
Even though cloud-computing technology has existed in Thailand for several years, the services are just starting to be widely available this year, following the entry of two big companies into the new market.
They are True Internet Data Centre, a subsidiary of telecom group True Corporation, and Internet Thailand (Inet), the country's first and largest Internet-service provider.
Inet's senior executive vice president Morakot Kulthamyothin said her company had provided cloud-computing services since last year, but offered clients only two things: server-log management and end-point protection solutions.
Inet has formed partnerships with software firms in order to provide their software applications to its clients under a software-as-a-service model, enabling the clients to use the software at a lower cost. For example, by forming a partnership with Symantec, Inet has been able to offer that firm's Internet Security software as an end-point protection solution with a licence fee of only Bt80 per user per month.
It also works with Sin Command to offer server-log management under the same business model.
"Our cloud computing services started with security applications last year, but we haven't aggressively put the service to the market. Currently, Inet's cloud-computing service has about 10,000 licensed users. All of them are small companies. When we started we had only 20 licences," Morakot said.
The beauty of cloud-computing services is that they help users to save the initial heavy investment in software and allow them to focus on their core business. The service provider takes care of their IT system, which is automatically updated by the software firm.
This year, Inet is to become more aggressive in marketing its cloud-computing service, with plans for additional services.
Morakot said the time was right for cloud-computing services to "take off", because of a number of "ready" factors: users were ready for it, the economic crisis was ending, the Internet infrastructure was ready, and software firms were ready to offer software-as-a-service rather than selling it across the counter.
She said her company had formed a partnership with Microsoft Thailand to provide Microsoft Exchange and Web-hosting platform through Inet's cloud-computing service.
This year, Inet expects that revenue from its cloud-computing service will grow by at least 100 per cent.
"This market is emerging in Thailand. It is going to take off. But this year, service providers have to help educate the market to be aware of cloud computing and recognise its benefits. We believe that cloud computing will fully take off next year and within a few years, it will account for around 10 per cent of our total revenue," Morakot said.
She said Inet's overall revenue in 2010 is expected to grow by at least 20 per cent over last year's revenue of Bt560 million. Around 40 per cent of revenue comes from Internet services and 60 per cent from IT and business-solution services, including the cloud-computing service.
Meanwhile, True Internet Data Centre (True IDC) has announced that it will provide a cloud-computing service this year.
Its first move has been to join Software Park Thailand in forming partnerships with 20 local software firms to provide software-as-a-service to Thai companies.
True IDC's general manager Janewit Kraprayoon said the cloud-computing service was his company's latest venture. It was offered for free trial early this year and commercial services began last month.
Due to the trends in both global and local markets, the company believes cloud-computing services could become its flagship product, not only helping the company to generate more revenue, but also helping small- and medium-sized companies to be more flexible in their investments in technology.
"The benefit of cloud computing is that it offers users flexibility and lower costs. It helps SMEs to start adopting IT and software systems easier and faster. Instead of paying huge amounts of investment up front, they just pay a monthly fee according to their usage," Janewit said.
True IDC is expecting only small revenue figures from its cloud-computing service this year as it, too, understands the need to educate the market. However, it aims to make Bt10 million from its cloud-computing service next year.
The company has so far formed partnerships with Microsoft Thailand, Trend Micro, and 20 local software firms under the arrangement with Software Park Thailand.
"This year's revenue from the cloud-computing service will be quite small. We will see a distinguished revenue portion next year. True IDC's total revenue was Bt250 million last year. Of this, around 80 per cent came from co-location services and only 20 per cent from IT services," Janewit said.
Market research firm International Data Corporation (IDC) Thailand has forecast that cloud computing will enjoy wider deployment in the Thai market this year, especially private cloud services.
It says the consumer-product sector is expected to pioneer the adoption of cloud computing. The move will also create a new trend: security-as-a-service, which telecom service providers can offer on a pay-per-use basis.
