• As the cloud battle in ASEAN continues, AWS has the advantage in the direct connect and go-to-market through partnerships with the domestic providers.
• The provider is also rapidly growing its customer base with various new references.
The public cloud competition in the emerging ASEAN region (excluding Singapore) is heating up. Alibaba Cloud entered the market early by opening a data center in Malaysia in October 2017 followed by another one in Indonesia in March 2018. Seeing the huge potential in the region, Google made an announcement in October 2018 to have its facility in Indonesia ready in early 2020 while AWS responded to its global rival with a similar announcement in April 2019. Despite AWS’ late move in the region (compared to Alibaba Cloud and Google), AWS has the upper hand in the direct connect or edge network as well as in the domestic go-to-market and brand share. This is achieved through its long partnerships with the domestic carriers and SIs.
With these advantages, AWS is rapidly expanding its subscriber base in ASEAN with various new references shared recently. For example, Capillary Technologies leverages various AWS services to expand its CRM business in 30 over countries including in Southeast Asia, scale up to 500% during peak campaign periods, and reduce costs by 40% using containers and automation. HappyFresh, an online grocery shopping service provider in Indonesia, Malaysia, and Thailand, uses AWS’ services to improve fraud detection and scale rapidly when needed. Filipino long distance e-commerce provider, QuadX, reduced monthly infrastructure spending from US$8,000 to US$600 and has accelerated its time-to-market of new services. USG Boral, a multi-national manufacturer headquartered in Malaysia, uses AWS’ solutions to enhance its analytics capabilities to increase safety and operational efficiency. Furthermore, while Microsoft has Azure Stack and Alibaba Cloud has Apsara Stack, AWS launched AWS Outposts this year, which hits the sweet spot of the ASEAN enterprises’ demand for private and hybrid cloud environments. AWS has also an edge in this area through its partnership with VMware, the leading hybrid cloud provider. AWS’ success in the region so far also shows that it is not just about having domestic facilities, the cloud providers also need to have a strong local presence to nurture the partnership ecosystem and win local deals.
Indonesia is just the beginning. The global webscalers are expected to enter the other ASEAN countries especially with the growing demand of edge compute. While data residency is a critical requirement for some verticals such as the government and FSI, enterprises should consider migrating their workload especially the less-critical ones to public cloud even if the data is hosted outside the countries. The global cloud providers have networked of direct connect PoPs locally and multiple availability zones to ensure low latency and high reliability for their services. With the growing availability of services such as AWS Outposts, Azure Stack, and Apsara Stack, enterprises also have the option to enjoy the public cloud benefits in private facilities and have more efficient hybrid cloud deployments. There is also a growing number of local providers with certifications from these webscalers to provide strong professional services ensuring successful migration as well as business outcomes from the cloud deployment.