TM ONE (Telekom Malaysia’s Business Arm Brand) is Going Beyond Domestic Market with Its Twin-Core Data Center

A. Amir

Summary Bullets:

• TM ONE is launching twin-core data centers in Malaysia, targeting businesses in Malaysia and Singapore as well as service providers

• While the features and price may be comparable against services offered in Singapore, there is a trade off in latency and options for exchange partners

TM ONE (the business arm brand of Malaysian incumbent carrier, Telekom Malaysia) is launching twin-core data centers in south of Malaysia and the capital city. The first data center is planned to be commercially launched in November this year while the second one is expected to be ready next year. The data centers will be Uptime Institute Tier-III certified for design and construction, and comply to other industry standards such as TVRA, PCI DSS, ISO-27001, ISO-14001, GBI and US LEED for security and green technology. TM will also offer carrier diversity and wide exchange options through its partnerships with various carriers as well as service providers. As TM is going beyond its domestic market, targeting the Singapore-based businesses and service providers, does it have unique values to challenge the existing players and win the market there?

There has been an increasing number of IoT implementations that require data to be processed in milliseconds (e.g., whether in transit, at rest, processed at the edge or core). There is a growing cloud adoption, data sovereignty, workload specific needs around big data, plus a growing number of Internet users which place new requirements on content distribution to drive a strong end user experience. This will continue to place new demands on data centers that have implications far beyond national borders. In this context, twin-core facilities would be an attractive option for cloud and content providers as well as any businesses, looking to expand their footprint capabilities or at least the right set up to meet their business needs.

For Singapore-based businesses, the first twin-core data center is located just across the Malaysia-Singapore border. With slightly more than half-an-hour drive from Singapore CBD (excluding immigration and custom checks), the data center offers very close proximity to them, offering very low latency and support for local hosting, business continuity and disaster recovery needs. Given the data center space is increasingly difficult to source, some may consider relocating to Malaysia as a primary data center location. Resources such as property, labor and energy are more affordable in Malaysia, which makes the market an attractive alternative.

Thus, TM’s twin-core data center will be an attractive option for cloud and content providers as well as Singaporean-based businesses for their expansion plan in the Southeast Asia region, geo-redundancy and/or BCDR needs. However there are several areas businesses need to consider. First, as an Asia-Pacific hub, all of the leading global carriers have a point of presence (POP) in Singapore while the majority of cloud and content providers have their services hosted in the country and connected directly to the local carriers and data center providers. The closer locations to these servers offers slight advantage on latency especially for workloads which milliseconds matter. Second, the BCDR/geo-redundancy is usually offered by existing data center provider. Having multiple data center providers for the same workload for redundancy may not be economical unless for critical workloads. However comparable SLAs and security metrics on availability, reliability and security may give businesses pause for consideration.

About Alfie Amir
Alfie Amir is a senior analyst in Current Analysis Group. He is responsible for research, consulting and analysis focusing on market and technology trends, competitive analysis and account-based intelligence for ICT spending and modeling future investments. He also works across several trackers (e.g., fixed, mobile and IT) providing market sizing, forecasts and insights across the region. Alfie is quoted regularly in trade press and is a regular speaker at conferences, workshops and other industry events.

What do you think?

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: