KUALA LUMPUR, July 17, 2013 – The access fee for Malaysia’s internet accessibility and connectivity need to be made more affordable if the country wants to be competitive in the data storage centre, in the cloud computing industry.
Echoing the recent statement made by the Communications and Multimedia Minister, Datuk Seri Ahmad Shabery Cheek, Tengku Farith said that Malaysia definitely has the potential to become a hub for data storage in the cloud computing industry as the country is currently ranked 13th out of 24 economies worldwide in terms of cloud computing utilisation, mostly due the adoption of policies that were conducive to cloud innovation.
“Local businesses are beginning to embrace cloud computing as more are aware of the tremendous agility offered and its competitive advantage over on-premise applications.
“Nonetheless, the development was hampered by the high cost incurred by the service providers which have to be absorbed by the customers,” he said.
Malaysia had 500,000 square feet of data centre (IDC) floor space as of 2010, supplying approximately four per cent of the total floor space in the Asia Pacific region.
The Data Storage Centre market in this region is projected to grow by 16.3 per cent annually, accumulating RM10.9 billion in sales by 2014.
“Malaysia has a substantially higher bandwidth rate as compared to the regional competitors, accounting for 30 per cent of monthly operating costs in the sector.
“This is twice the rate offered in Singapore and three times those offered by the Hong Kong bandwidth providers,” said Tengku Farith.
A recent Gartner Report released in October 2012, had also indicated that the growing interest in cloud computing, a term used to describe data storage and processing done on the web, will see further growth in the IT services segment.
In order to allow more businesses to embrace Cloud Computing, SKALI, the first Public Cloud provider in the region, has offered ultra flexible, scalable cloud servers via its infrastructure on-demand platform to allow medium and smaller-size enterprises to capitalise the best of what cloud computing has to offer, while minimizing risks.
Known as PAYU (Pay As You Use), the model enables customers to enjoy Private Cloud setup, either at their own premise or at SKALI DC, with zero capital expenditure.
“Since Private Cloud may not be within their budgets, we offer our clients to pay only as per their usage, without having any fixed charges,” said Tengku Farith.
The service is in addition to the Private Cloud as well as the Public Cloud offerings, currently offered by SKALI, thus enabling customers the ability to specify access limitations and the level of resource dedication to safeguard data privacy and security.
“It is our sincere hope that the related ministry will look into this matter if we want to attract more foreign companies to pick Malaysia as their cloud data storage centre.
“With the expected rising costs of real estates in Malaysia, the foreign companies may opt for countries that could offer them more cost-effective infrastructure and labour, and lowering the bandwidth rate would definitely help in balancing these unfavourable factors,” added Tengku Farith.