The CEO of Telkomsigma, Sihmirmo Adi, said the entry of foreign players cannot be separated from ecosystems like networks.
“This business is very network sensitive. We still believe that foreign players who enter will need a network,” said Mr. Sihmirmo.
Telkomsigma is a subsidiary of Telkom Indonesia, the state-owned telecommunications giant, and works with state-owned enterprises (i.e. Badan Usaha Milik Negara).
“Foreign players will face challenges on the network. We are not afraid of foreign players, because once foreign players enter and see the network, it will be difficult to compete in terms of price,” added Mr. Sihmirmo.
Rather than foreign tech giants, Telkomsigma expects competition to come from fellow local players in the private corporate segment, including Djarum and Sinar Mas who have entered the data center industry.
“It’s good if there are a lot of players, it will spur us to be more competitive,” said Mr. Sihmirmo.
Telkom Indonesia currently owns three data centers of Tier III or Tier IV standards in the country through its subsidiary Telkomsigma, which also holds the biggest share in the data services market at 43%.
“The higher the tier is not the more salable, in fact the higher tier, the more difficult it is to sell because the more expensive it is,” said Mr. Sihmirmo.
According to Mr. Sihmirmo, business needs in Indonesia require data centers that are certified Tier III or higher, with the most important quality being the UPS. In the event of a power failure, Telkomsigma’s UPS is said to be able to keep running the data center for more than ten minutes, while the generator will begin working in less than 20 seconds.
Mr. Shimirmo expects the IT services and corporate segments for B2B businesses to contract in 2021 because ‘the market is going down, as a result of the COVID-19 pandemic, while Telkomsigma predicts immersive technology to become an attractive segment.
“Only companies that have prepared themselves to go to B2B2C or B2C will excel, B2C also leads to lifestyle and digital services,” said Mr. Shimirmo.
As data consumption grows in Southeast Asia’s fastest growing digital economy, Telkom Indonesia will capitalise on the growing number of businesses and individuals going online by targeting growth in the data center industry.
Telkomsigma recently won the 2020 Corporate Image Award in recognition of their efforts in maintaining data center service continuity during the COVID-19 pandemic.
Image Credit: Telkomsigma