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Malaysia's cloud business grows 53%, but more needs to be done: MDeC Cloud conference

AvantiKumar | Sept. 26, 2014
In her keynote at the second MSC Malaysia Cloud Conference, MDeC COO Ng Wan Peng urged Malaysian companies to increase cloud adoption.

COO of MDeC modified 

Photo - Ng Wan Peng, COO, MDeC


Malaysia's cloud business has grown 53 percent (YOY), but Malaysian businesses need to increase their cloud adoption efforts to realise enhanced business gains as well as to close the gap with other countries in the region, said Malaysian ICT agency Multimedia Development Corporation [MDeC] during the second MSC Malaysia Cloud Conference recently.

In her keynote, MDeC chief operating officer Ng Wan Peng told 300 attendees, comprising SMES and channel partners from cloud vendors, that IDC's latest study showed the Malaysian Cloud business is currently growing at an average of 53 percent year-on-year, and was expected to generate revenue to a total of RM 1.5 billion [US$460 million] by 2015.

Ng said the IDC's research put worldwide revenue from public IT Cloud services as exceeding RM69.4 billion [US$21.34 billion] in 2010 and was expected to reach RM235.5 billion [US$72.42 billion] in 2015, representing a compound annual growth rate (CAGR) of 27.6 percent.

This rapid growth rate is more than four times the projected growth rate for the worldwide IT market as a whole, which stood at 6.7 percent currently, she said.

Ng said the study also predicted that by 2017, most Malaysian organisations will be using Cloud services from different suppliers to meet various business needs, and this will significantly change the way business goals can be achieved.

Themed 'Accessibility, Anywhere, Anytime', this year's conference also reiterated the message given last at last year's edition by MDeC's then chief executive officer Datuk Badlisham Ghazali who said: "While cloud adoption by Malaysian businesses is on the upward trend, countries such as Singapore and South Korea are still ahead of us. Thus, it is important for us to step up our efforts."

Social, mobile, big data analytics

"In a digital economy, the integration of these technologies; social, mobile, analytics and cloud, holds a great potential and is expected to open up higher revenue opportunities and better yield transformations," said Ng in her keynote. "Recognising this, MDeC will continue to boost the cloud ecosystem in Malaysia via various programmes to nurture industry players, by providing market access to ensure Malaysian enterprises advance further, and gain competitive advantage through this technology."

"The incorporation of Cloud computing into the implementation of Digital Malaysia has spurred the development of Cloud computing in this country, subsequently contributing to our digital economy aspirations," she said.

The MSC Malaysia Cloud Computing Enablement Initiative was introduced in 2011 as the key driver in the development of Cloud Computing ecosystem in Malaysia, as well as to promote MSC Malaysia software and services both locally and abroad.

There are now 233 ISVs [independent software vendors] and 3,900 new digital enterprises (SMEs) taking part in Cloud programmes under MSC Malaysia, according to an MDeC statement. These ISVs contributed to RM20.3 [US$6.24] million in revenue as of 2013, and with more ISVs coming on board in 2014, this number is expected to reach RM28 [US$8.61] million by year end.

There are currently eight active Cloud partners under the MSC Malaysia Cloud Enablement programme.  They include Microsoft (Malaysia)., Exabytes Network, Alam Teknokrat (SKALI), Emerge System, and Telekom Malaysia/VADS together with three new partner announced during this year's conference: NTT MSC, Shinjuru Technology, and Heitech Managed Services.


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