Call for data centre operators to move up the value chain

Local data centre operators should move up the value chain as it is a pertinent economic enabler and catalyst for digital growth, says Multimedia Development Corp (MDeC) chief executive officer Datuk Yasmin Mahmood.

With the current emphasis on data revolution and data-driven business, Yasmin said data centres should drive productivity and efficiency in efforts to see growth.

Although the next couple of years would be tough and Malaysia obviously being impacted by the global commodity prices, Yasmin noted that this should not hinder data firms from being innovative and looking at new ways of creating value-added services.

“Whenever there is downturn, there also lies pocket of opportunities for those in the digital services and solutions to create value-added services from the digital economic perspective,” said Yasmin on the sidelines after launching telecommunications services provider REDtone International Bhd’s new flexiCloud solutions.

REDtone, whose holding company Berjaya Corp Bhd has a 56.81% stake, launched the latest B2B cloud platform under its managed value-added services segment.

Targeted for small and medium enterprises, flexiCloud platform offered comprehensive, scalable, flexible and cost-effective solutions for businesses to align their IT infrastructure with their business strategy in a secure manner, requiring zero or minimal capital expenditure.

Meanwhile, Yasmin said Malaysia’s data centre revenue had been growing at a relatively good pace with a compounded annual growth rate of 35% from year 2011 to 2014.

And it was poised to achieve close to RM1bil in revenue perhaps by 2017, she said, adding that it aimed to hit RM2.4bil by 2020.

She said companies that subscribed to cloud services abroad should consider using cloud platforms like flexiCloud, more so in the weak ringgit situation, as they were paying more when translated in US dollar.

REDtone also announced its strategic tie-up with Huawei Technologies for cloud infrastructure services and four other partnerships with Fusionex International, Kinglake Group, Lambda and Cloud Raxak to help roll out its flexiCloud platform.

REDtone’s group managing director Datuk Wei Chuan Beng said both companies had invested RM50mil to build the flexiCloud platform and would inject up to RM100mil in the next three years when the business expanded.

“While it is difficult to set any target now, the platform is timely since there are about 10,000 to 20,000 firms subscribing to cloud services outside the country,” said Wei, who hopes the new product would contribute significantly to the company’s revenue since more firms were now going towards cloud.


Source: The Sun