Cisco Systems Inc, the world's largest IT networking equipment maker, is the first global mover to express explicit interest in a multibillion-baht national data centre project that will transform Thailand into a hub for data-driven economies in the Asean region.
The California-based firm has mapped out two options for bidding for the construction of Thailand's first national data facilities: through a partnership with a broadband network service provider or by just supplying the equipment.
"The time is right for Thailand to embrace the digital economy," said Saleh Haji Munshi, the president for Asean at Cisco Systems (USA) Pte Ltd.
Technology has been a crucial factor in driving Thailand's economic growth and competitiveness, influencing business development, he added.
However, Vatsun Thirapatarapong, managing director of Cisco Systems (Thailand), urged the government to halve the amount of data facilities to be constructed in order to prevent business failure and avoid an oversupply.
"The auctioning of a vast number of licences to provide digital TV provided a good lesson to all industries in Thailand. We should learn from past mistakes and not repeat the failure of the broadcasting industry," he said.
The government plans to build up to 40 data centres with a combined investment of at least 30 billion baht.
The project aims to bring down the cost of data centre operations while improving efficiency.
Almost half a dozen local technology companies have expressed a strong interest in investing in the project, with the government welcoming private sector participation.
Global tech firms including Australia's Telstra, Japan's NTT Communications, China's Huawei and China Telecom are said to be looking at the possibility of participating in the project but have yet to formally express an interest.
Mr Saleh said Cisco would like to be part of the government's policy to support the development of broadband penetration and cloud-based data centres.
"We aim to bring our technologies and IT solutions to help the state create the smart city of the future here," he said.
Thailand is among Cisco's top three Asean markets in terms of revenue growth and market potential, he added.
The country represents one of Cisco's global supply chains for networking equipment and optical products.
Cisco next month will invest in a technology-focused venture capital fund to invest in tech start-up firms in Asean.
Mr Saleh said enterprise IT spending in Asean was expected to continue growing, with cybersecurity, data centre and wireless network equipment the key drivers for growth.