Thai firms look to fend off big cloud rivals

Thai firms look to fend off big cloud rivals

Local data centre and cloud providers are trying to set themselves apart in the midst of fierce competition from international titans.

More consolidation is expected by 2020.

Annan Keawruamwong, chief executive of CS Loxinfo, foresees increasing adoption of cloud computing. The company offers automated systems for multiple cloud management that enterprises can use for a variety of cloud services.

This can help reduce wait times and complexity for customers as a one-stop solution.

The services offer monthly invoice billing for corporations and local support, and they enable companies that have sensitive data to know where data is stored locally.

CS Loxinfo also plans to provide next-generation firewall protection in the cloud through a collaboration with Palo Alto Networks, a US cybersecurity firm.

Mr Annan said data centres and cloud services continue to gain momentum as corporations with their own data centres move to the cloud.

By 2020, however, competition will become intense because of oversupply and the number of players in the market will shrink as consolidation takes hold.

"We believe that our change of major shareholder from InTouch Holdings to Advanced Info Service (AIS) will complement and increase competitiveness at the company," Mr Annan said.

Voradis Vinyaratn, executive director and acting managing director of TCC Technology, said 2018 promises to be an exciting year for local providers of data centre and cloud services.

"Research has shown that demand for data centre outsourcing in Thailand has been forecast with a compound annual growth rate of 18% from 2015 to 2020," Mr Voradis said.

The growth driver of data centre demand seems to be the need to introduce and implement digital transformation in both the private and public sectors, with big data analytics and cloud computing taking the lead.

IDC expects 40% of digital transformation initiatives to use artificial intelligence (AI) services by 2021.

AI will not only be used to enhance decision-making processes; this next generation of AI will provide an actionable path to enhance customer experiences and thus reinvent today's business model.

In regard to the typical IT spending, less investment will go to the "server model" and more to the "serverless model".

The pace of growth for public cloud computing of more than 25-30% annually contributes to growth of Thailand data centre landscape.

"With the increasing data centre service demand for both co-location and cloud services, it is in our plan to expand more multiple distributed and diverse cloud-enabled data centre facilities to local and regional companies to provide international-standard, secured facilities for their assets within three years," Mr Voradis said.

Supparat Sivapetchranat Singhara Na Ayutthaya, general manager of True Internet Data Centre Co Ltd (True IDC), said the growth of local data centres is 12-14% and cloud growth is 24% annually, driven by increasing connectivity amid digital transformation.

Moreover, leading enterprises in Thailand are expanding their footprint to overseas markets and providing digital services and e-payment.

True IDC focuses on one-stop service for customers to choose the location and level of services. True Corporation has a 35% share in Supernap Thailand, a premium data centre in Chon Buri.

Wanchai Vach-shewadumrong, who serves as deputy managing director of Internet Thailand Plc, said that through its subsidiary Mandara Communication Co, Inet will invest in up to 100 local firms that have applications to help accelerate Inet's cloud services, such as Internet of things, data analytics and online business applications.

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