MSC Malaysia to Boost Cloud Ecosystem for SMEs

MSC Malaysia’s Cloud Initiative to accelerate ICT adoption and promote locally made software and services

Kuala Lumpur, 5 October 2011 – Multimedia Development Corporation (MDeC) today launched the MSC Malaysia Cloud Initiative, which is focused on stepping up development of the cloud ecosystem in Malaysia. Aimed at driving the adoption of cloud-based services, the programme will enable MSC Malaysia Independent Software Vendors (ISVs) to deploy cloud software and services as a utility, while catalyzing demand by local enterprises for Made in Malaysia cloud software and services.

“The potential in terms of the spending on cloud computing services, is expected to surpass USD160 billion worldwide by 2020. In Malaysia, Frost & Sullivan expects the Malaysian Business Application as a Service (BAaaS) market to reach a market size of USD161.4 million by 2017. With the MSC Malaysia Cloud Initiative, we are seeking to capitalise on this potential by kick-starting a robust cloud ecosystem locally.Datuk Badlisham Ghazali, CEO, MDeC and Vijay Tharumartnam, Director of Corporate Communications, MDeC, addressing the media during the press conference

“Key to our success will not only be the creation of a ready marketplace for cloud services but also establishing a framework of standards and incentives to encourage users, particularly Malaysia SMEs, to adopt cloud computing services. Our target by end-2012 is to enable a total of 60 ISVs with an on-boarding programme and stimulus package to develop and promote Malaysian Made cloud applications and services,” said Datuk Badlisham Ghazali, CEO of MDeC.

Under the ISV enablement initiative, MSC Malaysia will collaborate with world-class Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) partners to firstly identify industry applications that are in demand and secondly to qualify MSC Malaysia ISVs that wish to participate in the initiative.

With the primary objective of lowering the barriers to entry for ISVs to migrate to the cloud, the aptly named Cloud On-Boarding Programme (COP) is being designed in collaboration with leading PaaS partners to cover comprehensive cloud training programmes, trial and proof-of-concept, hands-on to cloud software and tools, and guidance from expert technical consultants. Under the COP, the cost of on-boarding will be shared, with MDeC providing up to RM 15,000 in funds and MDeC’s PaaS partners providing free access to Software Development Kits (SDKs), as well as training and consultation on migration to the cloud also worth RM 15, 000.

Under the SaaS Acceleration Programme, qualified ISVs will also be entitled to a disbursement of RM 15,000 from MDeC along with a specially negotiated IaaS/PaaS package and subscription cost covering bandwidth, storage service and/or computer service for the first few months, also worth RM 15, 000.

In total, an allocation of RM30, 000 (worth of disbursement and other benefits) per vendor has been set aside for the development of 60 MSC Malaysia ISVs under the INFOTECH cluster by 2012.

In order to accelerate the market for cloud computing applications in Malaysia, MSC Malaysia will also introduce SME Cloud Computing Adoption Programme will allow local SMEs to adopt and utilize leading solutions by MSC Malaysia Status companies while enjoying incentivized subscription. A total of 1,500 SMEs by end-2012 are expected to benefit from this programme, receiving an allocation of up RM1, 500.00 or 6 months of subscription per recipient, whichever is lower.

To be eligible for the ISV programmes, ISVs must be an MSC Malaysia status company, be minimum 51% Malaysian owned and be registered with official MDeC IaaS/PaaS partners.

The MSC Malaysia Cloud Initiative ties back to one of the key targets of MSC Malaysia Phase 3, which is the infusion of technology across all economic sectors to drive productivity and innovation by lowering the barrier of entry for ICT companies and SMEs alike.

As of October 2011, the confirmed infrastructure partners of the MSC Malaysia Cloud Initiative are Maxis and Jaring.