In 2012, the challenge will be to manage business risk and to invest in areas where capital outlay is minimised. The focus for the industry should be on collaboration - either through the build-up of the eco system or create synergistic partnership - to reduce cost of operation and also manage the investment exposure. In addition, the government needs to communicate clear policies, preferably based on open auditable and neutral strategies.
Gina Tan, regional director, Southeast Asia, Brocade:
In the SSO [shared services and outsourcing] industry, which has attracted investment from multinational corporations and large firms to establish regional offices, contact centres, information technology services and back-office support, Malaysia has retained its ranking as the third best location, behind India and China, for outsourcing businesses.
According to the Malaysian Economic Report released on 7 October 2011, economic growth projections of between five and six percent in 2012 will be largely domestic driven, with focus on private investment, domestic consumption and government expenditure to offset any decline in net exports due to uncertainties in the global economy.
Domestic demand for data centre services and facilities is expected to remain robust as user transaction demand is accelerating, enterprise storage requirements are intensifying and the need for bandwidth and connectivity is continually rising, along with increasing outsourcing of IT services.
Under the Economic Transformation programme (ETP) facilitated by PEMANDU, the government wants to grow the data centre space from 0.5 million to five million sq ft (14,158 sq m to 141,584 sq m] by end-2020 and establish Malaysia as a preferred destination for regional data centre investors. The government believes date centres can play an important role in the country's economic development, and expects the space to contribute about RM$2.4 billion to gross national income (GNI) and create 13,290 jobs by then.
Global pressures to reduce carbon emissions, curtail energy requirements, introduce green technologies and comply with a range of legislative and regulatory requirements have also collectively provided a new dynamic to enterprise and service provider data centre decisions.
Because the network is the operational backbone for service providers, financial institutions, government departments and educational institutions, they need to respond to increasing requirements. Skyrocketing user demands for unlimited, fast, secure, and sophisticated services anywhere at any time is being driven by big data, rapid adoption of anywhere/anytime broadband services, increased video traffic growth and rich-media consumption, massive growth in mobile devices requiring dual-stack IPv4 and IPv6 support, the transition to LTE, rising demand for virtualisation and cloud services, Ethernet fabric-based network build out, software-defined networks, and growth in Web 2.0 and over-the-top services.
In 2012 and moving forward, service providers in particular, are expected (Gartner) to be very aggressive in building out the cloud via their data centre infrastructures, and in the process they will become the largest consumer of virtualisation technology.
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