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Japanese companies to capture cloud and data center market share in Southeast Asia

Japanese companies to capture cloud and data center market share in Southeast Asia

By | Uncategorized

Japanese companies to capture cloud and data center market share in Southeast Asia

Japan is placed at the most significant and largest data center services market in APAC. The country remains the world’s third largest national economy after the USA and China. Japan is highly urbanized with rich infrastructures and an Internet literacy rate of 93%.

Japan is the birthplace of many global powerhouses in the technology industry, including NTT, Sony, Fujitsu, and Mitsubishi. These successes accelerated the country to be equipped with one of the world’s most advanced telecommunications networks.  

Over the past few years, apart from the rising demand in the usage of cloud services, the market size and demand of domestic data centers are also growing at a fast pace. The size of the domestic data center market in 2022 is expected to reach ¥1,797.6 billion, with an annual growth rate of 8.6% from 2017 to 2022.

ASEAN seen as an attractive hub to expand business 

Following decades of domestic expansion, Japanese companies are now seeking to invest in the APAC region, and especially into ASEAN. In contrast to the slowing economy of Japan, Southeast Asia is progressing rapidly, which attracted Japanese corporations to expand to ASEAN. The annual growth rate of the datacenter market in ASEAN countries is estimated at 13% between 2019 and 2024.

In 2013, ITOCHU Techno-Solutions Corporation (CTC), a Japanese IT systems integration company, expanded their various IT businesses for data center in ASEAN, by acquiring ​CSC Automated Pte. Ltd. (Currently known as: CTC Global Pte. Ltd) in Singapore. Keita Koizumi, CTC’s Senior Business Development and Account Manager, anticipates standard office systems to witness a shift towards cloud services over the next five years due to competitive pricing and flexibility in operation.

 


Growth is also expected from many data centers and managed services for giant IT companies, such as Google, Facebook, Alibaba and Tencent. While Japanese IT services continue to emerge, the demand is unable to keep up with the growth. For Japanese companies to remain economically sustainable, they would need to expand their business and services outside of Japan towards countries where the economies are growing steadily. As ASEAN work towards the goal of achieving regional economic integration, it greatly boosted investment confidence, making ASEAN an attractive hub for IT services companies. 

In the past, Japanese trademark products were known to be the best and exports from Japan were very costly. But in recent years, businesses across ASEAN are moving forward rapidly and creating products mirrored to Japanese products due to technological advancements. These products are similar to that of Japanese products but could be at a fraction of the price. Mr. Koizumi suggested Japan needs to start working with ASEAN countries to lower their production cost and to gain an international foothold to compete globally. 

The challenges of expanding into ASEAN

Expansion into ASEAN comes with its difficulties. With diversified cultures across ASEAN, adaptability and manpower management poses a great challenge. Ask questions and immerse yourself in these cultures to understand these cultures and manage the people working for you in different regions.

Firms looking to expand into ASEAN should also be aware of the various building and data protection regulations in each country. Along with the globally recognised Uptime Institute and ISO 27001, there is also Singapore’s Threat and Vulnerability Risk Assessment (TVRA), Hong Kong’s Outline Zoning Plan and Philippines’ Data Privacy Act. If you wish to expand your datacenter or cloud services in any country, you should comply with all laws and regulations during build and operational phases.

To ensure a smooth transition into the ASEAN market, be aware of these challenges and make decisions with prudence when selecting a country in Southeast Asia to successfully expand into.

Connect with the right people and get advice before you expand into ASEAN

At W.Media, we have a strong presence in the ASEAN cloud and datacenter industry. Bridge the gap to building relationships with these firms in ASEAN by connecting with us today. We can help you leverage on our extensive marketing offerings and networks. For more information and advice, email partner@w.media or call our friendly consultants on +65 8769 3412.

Author

Sumin Park

W.Media

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April 2020

Japanese companies to capture cloud and data center market share in Southeast Asia

April 2020 | Uncategorized | No Comments
Japan is placed at the most significant and largest data center services market in APAC. The country remains the world’s third largest national economy after the USA and China. Japan…
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April 2020

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Open Source Hardware to drive Reinvention of an efficient Data Center

Open Source Hardware to drive Reinvention of an efficient Data Center

By | Uncategorized

Open Source Hardware to drive Reinvention of an efficient Data Center

Data centers have been springing up at an accelerated rate since the rise of Internet and Cloud based companies storing billions of gigabytes of information. In Southeast Asia, the rise in demand has been matched with a rise in supply, and what we see today is a competitive market with both international and homegrown data center providers. This leads to cost reduction and power efficiency becoming the key drivers of adopting new technology and best practices. 

Open Compute Project (OCP) vanity free open source hardware has been adopted by the world’s Telecommunications Service Providers to “Cloudify” their infrastructure for supporting tomorrow’s technologies of  5G, IoT and Smart Cities. This transformation to open source technologies has produced 70% CAPEX reductions and more than 50% OPEX reductions.

OCP servers also use 50% less energy than traditional proprietary enterprise servers and we will highlight how companies are aligning energy efficiency targets with their use of open source hardware.  Furthermore, the drivers of adoption of OCP are growing more diverse – cost reduction and power efficiency are still the biggest reasons why, but the market is now realising that feature flexibility and conformance to those specifications approved by OCP provide a measure of “comfort” to the market.

Bringing OCP benefits into Southeast Asia

OCP benefits have been realized especially in Europe, the US, Japan, South Korea and more. In line with sustainability efforts being encouraged in Southeast Asia, OCP and W.Media will jointly run a series of webinars to educate innovators further on the technology developments and benefits founded by the OCP communities in the world, and the current projects going on in Southeast Asia. 

In the first webinar session of the three-part series, Steve Helvie from the non profit Open Compute Project (OCP) Foundation will tell the story of how the open source model is being used for servers, storage and network hardware, plus highly optimised low cost energy-efficient data centers. Steve will also provide an overview of the OCP Foundation which started in 2011 and now has a worldwide community of thousands of engineers working on common solutions within the data center, and beyond. 

More information about the speakers

Steve is currently the VP of Channel for the Open Compute Project (OCP).  In this role he helps to educate organisations on the benefits of open hardware designs and the value of “community-driven” engineering for the data centre. He works closely with Solution Providers and Manufacturers to help organisations adopt Open Compute across all regions and segments of the market.

Yabin Wang joined Facebook back in 2016 as a Sourcing Manager and was responsible for procuring OCP racks for Facebook’s data centers around the globe. That experience allowed her to understand the OCP server lifecycle from concept to delivery.  She moved from California to Singapore in the start of 2020 and is now a Business Operations Program Manager in the Infrastructure Data Center group. In her current role, one of her core responsibilities is to work with the OCP Foundation and other members of the Facebook Infrastructure team to promote and raise awareness of OCP in APAC. 

Dharmesh Jani (‘DJ’) has been an active member of OCP since 2012. DJ has over 20+ years of experience in various roles spanning engineering, product management, and business strategy. He started his career at Rockwell Science Center designing ultra-high speed circuits in CMOS, subsequently as a system designer he designed the first terrestrial FEC based optical transmission system at Corvis Systems. As a product manager at Semtech, he introduced the world’s first coherent 100G MUX for ultra-long-haul transport systems. Prior to joining Facebook, DJ led the cloud transformation for the biggest business unit at Flex. He was instrumental in bringing Flex into OCP and via founding of CloudLabs team, building core competencies within Flex to launch a cloud business unit. In his current role at Facebook, he is responsible for leading OCP and other open technologies, working with stakeholders inside and outside Facebook. Earlier in his career, he held roles at Infinera and Intel among others listed above. DJ is based out of Menlo Park, CA and is looking forward to working with the OCP Community and leadership team to continue the drive towards more open infrastructure.

Join the 45-minute webinar session, titled “Open Source Hardware and the Creative Destruction of the Data Center”, that will take place at 11am (Singapore time) on 8th April 2020. Pre-registration is required, and limited slots are available – register today via this link.

Author

W.Media Editor

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April 2020

Japanese companies to capture cloud and data center market share in Southeast Asia

April 2020 | Uncategorized | No Comments
Japan is placed at the most significant and largest data center services market in APAC. The country remains the world’s third largest national economy after the USA and China. Japan…
Read More
April 2020

Open Source Hardware to drive Reinvention of an efficient Data Center

April 2020 | Uncategorized | No Comments
Data centers have been springing up at an accelerated rate since the rise of Internet and Cloud based companies storing billions of gigabytes of information. In Southeast Asia, the rise…
Read More
March 2020

Pushing the edge of sustainability in the data centre with natural gas and lithium-ion UPS

March 2020 | Uncategorized | No Comments
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February 2020

OVHcloud sets to capture Cloud market share in Asia Pacific with infrastructure expansion

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Amidst the tides, Digitisation is key to Business Continuity

February 2020 | Uncategorized | No Comments
COVID19 is the latest of a series of cataclysmic events with an enduring impact on the global business landscape. The uncertainty, and the palpable fear linked in part to the…
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January 2020

Southeast Asia (SEA) Datacenters set to witness accelerated growth in the next 5 years

January 2020 | Uncategorized | No Comments
A report by Cushman & Wakefield estimates that the Southeast Asia Datacenter market is set to achieve a Compounded Annual Growth Rate (CAGR) of 13% in the years 2019 to…
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Amidst the tides, Digitisation is key to Business Continuity

Amidst the tides, Digitisation is key to Business Continuity

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COVID19 is the latest of a series of cataclysmic events with an enduring impact on the global business landscape. The uncertainty, and the palpable fear linked in part to the all too painful memories of SARS, have caused a massive shift in thinking about digitisation. No longer merely a tool to ease and streamline collaboration, the digitisation of workplace processes has become the backbone of the economy.

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Thailand as a strong contender to be the ICT hub for Indochina

Thailand as a strong contender to be the ICT hub for Indochina

By | Uncategorized

The inaugural Thailand Cloud & Datacenter Convention (THCDC 2019) organised by W.Media was held at Sofitel Bangkok Sukhumvit on 6 November 2019. The event welcomed over 750 attendees, 30 technology showcase and 30 expert speakers from all over the world. It was a comprehensive experience for the industry as the event covered key themes, including connectivity, data centres development, cybersecurity and cloud, which are essential to the industry’s growth.

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Press Conference by OPEN-TEC (Thailand) & W.MEDIA (Singapore) in Bangkok, Thailand

Press Conference by OPEN-TEC (Thailand) & W.MEDIA (Singapore) in Bangkok, Thailand

By | Uncategorized

BANGKOK, Thailand, September 24th, 2019 – OPEN-TEC (Thai tech platform) and WMedia Pte. Ltd. (W.Media) (Singapore platform) reached a Memorandum of Understanding (MoU) in July, 2019 to foster collaboration in Cross Country Tech Knowledge Base. Execution has been initiated in a form of the event “Thailand Cloud & Datacenter Convention 2019” (THCDC 2019), to be held on November 6th, 2019 at Sofitel Bangkok Sukhumvit.

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“Are we ready for Digital Indonesia 2020 ?” By Ajay Sunday, SC-Nex (Part of Sumitomo Corporation)

“Are we ready for Digital Indonesia 2020 ?” By Ajay Sunday, SC-Nex (Part of Sumitomo Corporation)

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“Are we ready for Digital Indonesia 2020 ?” By Ajay Sunday, SC-Nex (Part of Sumitomo Corporation)

This was the ambitious topic which we panelists joined at the Indonesia Cloud and Data Centre convention organized by W Media.

The panelists consisted of

-H. Sukamta, DPR (Dewan Perwakilan Rakyat)
-Thomas Kyung Joo Suh (Epsilon)
-Alex Budiyanto (Indonesia Cloud Computing Association),
-Theo Nasser ( Right- Hand AI Cybersecurity),
-Nimisha Tailor (Keynote Women Speakers),
-Rudi Rusdiah (ABDI)
-Ajay Sunder (SC-Nex)
And was moderated by Ted Hilbert (Cloudmatika)

It was amazing that we managed to cover a range of topics ranging from digital culture, regulations, connectivity, cybersecurity, talent and more in the 45 minutes allotted.

Some key notes from the discussion:

Regulations
Indonesia is embracing itself for some transformation. This will happen at a regulation level as well. Although there will be a new Cabinet this October but the fundamentals of regulations regarding Indonesia’s digital economy ( OJK – 82 / Others ) has been clarified .

The difference between Data Privacy and data protection should be clearly understood by Indonesian enterprises both wrt implications and impact .Data Privacy is about getting the consent to use data from the user . The user needs to be clear on what purpose will this data be used.Data protection is ensuring control over the location of the data and strict controls to prevent unauthorized access to the data .

As ASEAN countries across ( Thailand , Malaysia , Singapore , Indonesia and others ) introduce and enforce Data privacy laws , key issue will be the extent of harmonization of these laws across the region. This will be important to unlock the benefits of ASEAN as a region so all countries can benefit from this .

Another discussion point was the new tax law on foreign tech companies which was announced a day before and the impact it will have on the Digital economy.

https://www.businesstimes.com.sg/government-economy/indonesia-plans-tax-overhaul-to-make-tech-firms-pay-vat

Cybersecurity
Indonesian enterprises are still not that concerned /aware on the risks from under-investing in Cyber-security . It is important for CIOs to realize it is not a question of “If but When“” . Indonesian enterprises need a back up plan and constant monitoring to ensure they are aware of the vulnerabilities and are constantly assessing and trying to bridge the gaps in the Network to the extent possible.

Connectivity
Indonesia given the geographical complexity is a challenge wrt Connectivity. The telcos are doing a reasonably good job but the enterprise grade connectivity is still a challenge beyond the major cities.

New solutions like SD-WAN may be important for the CIOs to start evaluating to accelerate the Digital transformation

Talent
Pak Alex highlighted some new initiatives wrt scholarships which have been announced to better match the requirements from the tech industry with the current curriculum . This is essential to produce a future tech workforce which can support the growth of Indonesia’s Digital economy.

Nimisha shared her perspective on what are some of the best practices from other countries and how Indonesia should be embracing a culture of inclusion, mentor-ship and constant training to ensure females are represented well in the new Digital economy.

All in all a great session and was well moderated by the ever cheerful and cogent Ted Hilbert .

Thanks Ted for that and to all the panelists for a great session and to the W Media team for another great event !

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April 2020

Japanese companies to capture cloud and data center market share in Southeast Asia

April 2020 | Uncategorized | No Comments
Japan is placed at the most significant and largest data center services market in APAC. The country remains the world’s third largest national economy after the USA and China. Japan…
Read More
April 2020

Open Source Hardware to drive Reinvention of an efficient Data Center

April 2020 | Uncategorized | No Comments
Data centers have been springing up at an accelerated rate since the rise of Internet and Cloud based companies storing billions of gigabytes of information. In Southeast Asia, the rise…
Read More
March 2020

Malaysia set to harness the power of AI with $1 billion park and scholarship programme

March 2020 | Uncategorized | No Comments
Malaysia amps up in the artificial intelligence race with Malaysia’s first AI park and scholarship programme that will drive technological development in the country. The park is expected to give…
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March 2020

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March 2020 | Uncategorized | No Comments
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Cool Running’s With Ken Ng

Cool Running’s With Ken Ng

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As the founder of Canatec Pte Ltd in Singapore, Mr Ken Ng is also their Business Director. His specialisation is: Mission Critical Environment Solutions., and has been in the Mission Critical Environment Solutions industry for more than 15 years. ..

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