New data centres back growing cloud services demand in Malaysia, Singapore – ISG
25 Jul 2023
The markets for private and hybrid cloud services in Malaysia and Singapore continue to grow as providers increase investments in data centres across the region, according to a new research report published by Information Services Group (ISG).
The 2023 ISG Provider Lens Private/Hybrid Cloud — Data Center Services report for Singapore and Malaysia finds that rising enterprise demand for exceptional computing resources, especially green data centres and hyperscaler capabilities, is driving data centre expansion and modernisation.
“Strong investments are turning Singapore and Malaysia into world-class data centre services markets. We expect providers to keep expanding managed hosting capacity,” said ISG principal consultant, Technology Modernization, Ben Rossiter.
According to the report, enterprises in the region seek data centre services to meet growing needs for security, sustainability, edge computing, customisation and compliance.
Many are turning to services using artificial intelligence (AI), machine learning (ML) and automation to address challenges related to rising costs and skilled labour shortages, which are expected to persist beyond the end of the decade.
“Singapore and Malaysia are separate markets, due to regulatory, geopolitical and cultural factors, but the same technologies meet typical clients’ needs in both nations,” said ISG in a statement.
Edge computing applications are expanding in the region in asset-rich industries such as retail and utilities, though more slowly than anticipated. The use of these applications and Internet of Things (IoT) devices to reduce latency and achieve real-time data processing is creating additional demand for private and hybrid cloud resources.
ISG added that enterprises are also accelerating sustainability efforts in response to government and private-sector initiatives, especially in Singapore, whereby data centre strategies are often at the heart of these efforts, with companies shifting to greener locations, energy sources and management systems even faster than expected in 2022.
While public clouds are growing faster, private clouds still have utility for some enterprises due to factors such as data sovereignty, particularly in Malaysia, according to the global technology research and advisory firm.
Evaluating the capabilities of 35 providers across three quadrants, the report also explores other cloud trends in Singapore and Malaysia, including the need for skills development across the region and the growing popularity of data-centre-in-a-box offerings.