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Advancing Indonesia’s cloud and data center services

The world's data center and cloud services industry players are focusing on developing their businesses in Southeast Asia as the world economy recovers from two years of pandemic.

Front Row (The Jakarta Post)
Jakarta
Mon, May 23, 2022

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Advancing Indonesia’s cloud and data center services

T

he world's data center and cloud services industry players are focusing on developing their businesses in Southeast Asia as the world economy recovers from two years of pandemic. This goal was discussed at the 2022 Indonesia Convention of Data Center and Cloud Services, which was held at the Shangri La Hotel in Jakarta on Thursday. The event was attended by data center and cloud services industry stakeholders from Indonesia and abroad, including BDx Data Centers, Huawei, IDCloudHost and JLL.

President Joko “Jokowi” Widodo’s goal of having 30 million small and medium enterprises (SMEs) go digital in 2024 was enthusiastically welcomed by stakeholders in the field of information technology. This was reflected in the various topics discussed by the industry players at the convention.

 "We are ready to provide affordable and good quality services to support the government's program of onboarding the digitization of SMEs in Indonesia to implement the government program of onboarding 30 million digital SMEs," said Adam Darmanto, Vice President of Finance and Business Operations at IDCloudHost, a leading cloud services provider for start-ups in Indonesia.

Adam, who was one of the panelists at the convention, added that Indonesia needed not only quality data centers but also affordable data centers for cloud service providers to be able to help digitize SMEs.

 "We encourage data center providers to innovate so that data center services in Indonesia become more affordable. There are two areas that we view as innovation opportunities, namely utilizing rack placement technology to increase the capacity of the number of servers per rack and electricity management, with the implementation of individual-usage electricity metering on the rack," said Adam.

The innovation will increase the efficiency and productivity of data center operations, which in turn will make the services more affordable for cloud service providers, so that they can become enablers for SMEs to transform and be digitally present, either to create websites or employ cloud-based operational management.

"We are ready to support the growth of Indonesian SMEs," said Adam, the 26 millenial panelist at the convention.

The 2022 Indonesia Cloud Services and Data Center Convention, organized by w.media, specialized in covering the development of the data center and cloud services industry. The convention was attended by various stakeholders in the cloud services and data center industry.

In recent years, the global data center industry has been growing very fast. This has been driven by the world’s massive digital transformation, growing IoT technology and the shift to cloud computing services.

Market Research Company Technavio projects that the global data center market in the period 2020 to 2024 will grow by US$304.87 million. The fastest growth will occur in the Asia-Pacific region.

S&P also released a study that found that the Asia-Pacific region will achieve around 10 percent CAGR in 2017-2022. This percentage is higher than the global data center industry, which is estimated to record a CAGR of 7 percent.

Indonesia is now the center of this growing market.  According to Mordor Intelligence, the Indonesian data center market is expected to grow at a CAGR of 12.95 percent during the period of 2021-2026.

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