Tencent Inaugurates Data Center in Indonesia, Enliven Local Cloud Computing Market Competition

Tencent Cloud announced that it has launched data center (named: Internet Data Center) is the first in Indonesia located in the CBD area of ​​Jakarta. Currently the company says, their cloud computing service infrastructure covers 27 regions with 61 availability zones.

Its expansion to the homeland is not without reason, from the data submitted by Indonesia it becomes a market public cloud which is the fastest growing in Asia Pacific with a CAGR of 25% and is expected to increase its market size to $0,8 billion by 2023.

Tencent Cloud International SVP, Poshu Yeung, said that the population structure dominated by youth is believed to continue to encourage the increase in the internet market. The presence of these cloud computing services will also strengthen infrastructure in various sectors Tencent's app in Indonesia, including Joox and WeTV.

In addition, the company also said that several financial institutions have also started tasting their cloud computing services, one of which is the Neo Commerce Bank which utilizes the Tencent Distributed Database feature.

Many people are building data centers

Previously, at the end of February 2021, Microsoft also just announced the establishment of its first data center in Indonesia. From the results of the research by research firm IDC, it is estimated that Microsoft's investment could generate new revenues of up to $6,3 billion (for all product lines) from the ecosystem of customers and partners in Indonesia.

Another player who has also started pouring investment to build a data center in Indonesia are Alibaba, Amazon, and Google.

Previously, various parties – including regulators – had continued to encourage global technology companies to present their data centers in Indonesia. It had been delayed for a long time due to inadequate infrastructure and human resources. However, along with the growing national digital industry – with implications for increasing cloud computing services – provider The global market decided to present its data center and availability zone in Indonesia.

Local players don't want to lose

Several local companies also offer cloud computing products to support digital businesses. There is Telkomsigma (a subsidiary of Telkom), recently they have also entered the SME-scale market through services Flo Cloud. Then there is Biznet Gio which continues to penetrate the market.

Recently, in conjunction with the launch of a new feature specifically for SMEs, Biznet Gio announced third data center which is located in Banten. Established to meet the needs of customers who require high availability features and data storage in more than one data center. The first and second data centers are located in Jakarta (MidPlaza) and West Java (Technovillage, Cimanggis).

Recently, Init-6 has also provided initial funding of IDR 72 billion to IDCloudHost, a public cloud computing service provider for SMEs in Indonesia.

Clearly local players can have strong unique value propositions – both in terms of their understanding of local markets, need for regulation, and strong infrastructure fundamentals. One of them, as stated by Biznet Gio, with their infrastructure capabilities they claim to be able to provide connectivity between data centers through a closed network (private network) of 10 Gbps without passing through the internet network, which is provided without additional costs or additional installation to customers.

-

Header Image: Depositphotos.com