Business Focus and Service Expansion of Tencent Cloud in Southeast Asia

Cloud computing or cloud computing has revolutionized the way businesses store, manage and process data. With a scalable infrastructure and cost-effective pricing model. It has become an increasingly popular choice for companies looking to upgrade their information technology infrastructure. Southeast Asia in particular with its fast growing economy and classified population "tech-savvy", is an area that has great potential from the application of cloud computing or cloud computing.

In the released report DSInnovate and Alibaba Cloud Indonesia titled From Self-built to Cloud Native, Why Do Startups Choose Cloud? revealed, today's digital business is required to be able to deliver applications with reliable performance. Subscriber growth is increasingly difficult to predict; when growth occurs and the system is not ready, it can result in poor user retention.

Despite these challenges, potential cloud computing in Southeast Asia is quite significant. With the region's growing economy and growing demand for digital services, cloud computing is likely to play an increasingly important role in Southeast Asia's digital transformation.

Tencent Cloud development focus in Southeast Asia

As one of the platforms cloud computing from China, Tencent Cloud tries to bring globally relevant technology and services.

At a media briefing in Singapore some time ago, SVP Tencent Cloud International Poshu Yeung said that the company's initial focus was to develop services and technology for China. But now the company is also starting to expand outside of China, especially in the Southeast Asia region. Starting from Hong Kong (Macau), Thailand, and of course Indonesia.

"Basically it is the Southeast Asian region, because I think Southeast Asia is currently going through a process skip generations, so they passed one big step and now they see the need for rapid adaptation and adoption of technology."

One of the main advantages of cloud computing is scalability. As businesses in Southeast Asia continue to grow and develop, they need an IT infrastructure that can keep up with changing needs. Cloud computing allows businesses to quickly and easily scale up or downgrade their IT resources as needed, without having to invest in hardware and development expensive one.

He added that localization then became the company's focus. In this case, before launching their business in certain countries, they have followed the rules from the relevant regulators and made sure compliance or compliance has been executed accurately up to 100%.

"We are already running a business in Thailand, as well as in Indonesia. Overall in the Southeast Asia region we are also continuing to experience growth. Tencent Cloud has recorded growth of up to 3 digits in Thailand and Indonesia," said Poshu.

Building two data centers in Indonesia

Since last 2021 Tencent Cloud has built two data centers in Indonesia. The company also claims that it continues to build relationships and work with related parties in Indonesia, by placing a local team. Other players who have also started investing in building data centers in Indonesia are Alibaba, Amazon, and Google.

As a platform that has quite a large amount of content, Tencent's presence in Indonesia has been strengthened so far WeTV and iflix Indonesia. The two applications are now managed by Tencent, and put Lesley Simpson as Country Manager for WeTV and iflix Indonesia.

It was asked whether in the future Tencent Cloud will focus more on developing media content such as VOD to OTT in Indonesia. According to Poshu, this is one of Tencent Cloud's strengths, judging from the potential and demand from OTT platforms in Indonesia.

The media services market size in the APAC region is projected to reach $6.9 billion by 2026, with a CAGR of 27% over the next four years. In addition, the demand for audio and video solutions is expected to increase in various downstream industries, by sector E-commerce showing the largest CAGR among other sectors including online gaming, media and entertainment, enterprise, and healthcare.

"Drawing on Tencent's two decades of experience serving and connecting more than one billion users worldwide on a consumer-facing platform, Tencent Cloud is in a strategically strong position to help enterprises achieve immersive convergence, a concept that incorporates innovative technologies and approaches integrating the digital economy and the real world for seamless connection,” said Poshu.