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Growth of Hyperscale Cloud Service Providers Driving Uptake of Outsourced Data Centers
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Hyperscale cloud service providers have been key in driving the demand for data center services in the ASEAN and Taiwan (henceforth collectively referred to as “ASEAN”). For instance, some cloud vendors have begun promoting Malaysia as a country with rapid cloud adoption. Earlier in May 2017, Alibaba Cloud unveiled plans to open the first data center in Kuala Lumpur, growing the company’s footprint to 15 data centers worldwide.In addition, various governments across ASEAN are introducing initiatives and measures to attract IT-based investments in the country, in a bid to develop their respective countries as key digital hubs. In more emerging countries such as Myanmar and Vietnam, the government has continued to invest in basic telecommunications infrastructure and networks. Meanwhile, in more mature countries (e.g., Singapore) and countries experiencing higher data center services revenue growth rates (e.g., Malaysia, Thailand), governments have been embarking on numerous Smart City initiatives as part of their Digital Transformation roadmap. Key tenets of these initiatives are the need for data center modernization, as well as third-party outsourcing of edge data centers for latency-sensitive applications.At the same time, data center infrastructure management has emerged as a leading priority for many enterprises across ASEAN. With rising power costs across the region, many enterprises are taking a keen interest in management capabilities that enable them to generate operational insights into their on-premise data center infrastructure.How can data center operators in ASEAN and Taiwan capitalize on the opportunities mentioned above to increase their revenue streams? At the same time, what are the other key growth opportunities that data center service providers can create to support end users in their data center modernization roadmaps, amid the increasingly competitive market participant landscape in ASEAN and Taiwan?
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