Google Cloud expands into Southeast Asia

Google Cloud has entered Southeast Asian enterprise spaces over the last few years beyond the base of high-tech unicorn customers such as Tokopedia in Indonesia and Ninja Van in Singapore.

Ruma Balasubramanian, new managing director of Google Clouds in Southeast Asia, said cloud suppliers have recently become more corporate customers, including Indonesian conglomerate Salim Group, thanks to a pandemic that has accelerated digital transformation efforts across the region. Is registered.

Balasubramanian told Computer Weekly that there was a lot of demand in traditional businesses, which may not have been the case a year ago. The pandemic created a sense of urgency.

Former Cisco executive Baras Bramanian, who took up a top position in the region in December 2020, said retailers, for example, were interested in sales events and gamification while building digital front doors in the cloud. He said he was doing it.

Such an initiative was better a year ago, but has since started in the last 6-12 months, she said. They had a lot of momentum in terms of moving to the cloud.

Enterprise segments are often difficult to penetrate, especially for cloud providers who must navigate their organizational hierarchy and meet the stringent compliance and security requirements of regulated industries.

Balasubramanian doesn’t see it as an issue, but she said the local cloud penetration is about 20%. The remaining 80% is of great interest to us, which applies to large companies as well as mid-sized companies, she added.

Balasubramanian said Google Cloud is leveraging some of the industry solutions such as contact center AI used by local carriers, retailers and service providers to crack the market. ..

And like its rivals, Google Cloud is working with enterprise software giants SAP and VMware to work on key enterprise workloads migrating to public cloud services.

However, in Southeast Asia, most public cloud suppliers operate cloud regions exclusively in Singapore and Indonesia, with companies outside the two countries hosting workloads across the coast. This arrangement works for companies like Globe Telecom in the Philippines, but other companies may be constrained by data resident requirements.

One of the reasons Indonesia was so important to us in terms of the existence of the public cloud was that we were tracking some of the data sovereignty requirements in Indonesia for many quarters, Balasabramanian said. I will. I felt that building a public cloud presence was absolutely important for that market.

Some of the other markets in Southeast Asia are still under investigation, especially in active collaboration with regulators in Vietnam, Thailand and Malaysia to assess what is happening there and opportunities for local presence. I did.

In February 2021, the Malaysian government set a blueprint for the MyDigital digital economy to strengthen its digital infrastructure, including investing RM12-15 billion over the next five years in four cloud service providers: Microsoft, Google and Amazon. Announced. Telekom Malaysia builds and manages hyperscale data centers and cloud services.

Balasubramanian emphasized that the absence of the cloud is a particular market and does not hinder the growth of Google Cloud. No customer says they absolutely need a public cloud region in their country to do business with us.

According to Canalys, Google Cloud was the world’s third largest cloud service provider in the fourth quarter of 2020, boasting a 7% market share.

This quarter as it promotes an open cloud strategy focused on sovereign, sustainability and multi-cloud management, focusing on five vertical industries including retail, healthcare, financial services, media, entertainment and manufacturing. Reported a growth of 58%.

The company also aligns its sales force and channels with these industries in building a network of partners with industry-specific expertise and deep expertise in priority solutions such as machine learning, analytics and data management.

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