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.
• 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. Continue reading “AWS Adds More ASEAN Customers as the Cloud Battle in the Region Heats Up”→
TM has been offering SD-WAN since November 2018, but Maxis’ launch of its service last month marked the beginning of the real competition.
More carriers, integrators and resellers are expected to join the bandwagon, driven by customer demand.
SD-WAN in Malaysia
SD-WAN is not new; it has been around in the market globally for several years, offered by various providers such as carriers, system integrators and value-added resellers. The ecosystem is maturing, with a growing number of vendors and new capabilities having been developed (e.g., multi-vendor interworking, overlay-underlay integration, more virtual network services, network-cloud convergence). However, the market is only beginning to gain momentum in Malaysia. Telekom Malaysia (TM), the fixed-line incumbent provider in the country, launched the service in November last year, offering its customers two vendor options. The provider has not been aggressive in the market with its SD-WAN services due to the risk of losing its business from the legacy data services (e.g., IP VPN, Ethernet, Dedicated Internet) as well as the lack of competition. While there are smaller telcos, value-added reseller and system integrators such as RedTone, ViewQwest, Netpoleon, LNS and BreitKom in the market, its major competitor – Maxis – only launched SD-WAN last month, while Time has yet to offer the service. Continue reading “The Beginning of the SD-WAN Era in Malaysia”→
TM ONE leverages its wide ICT capabilities, research and development, and local knowledge to offer IoT solutions and gain a competitive edge in the market by addressing the needs of domestic enterprises.
However, the applications offered are limited and there are still gaps in its platform features compared to others in the market.
IoT in Malaysia and the Main Inhibitor
IoT has become a business need rather than a good-to-have technology. With benefits such as reducing operational expenditure, the technology is implemented by enterprises across verticals as a new solution or a replacement of the existing process. In Malaysia, the IoT deployment is growing, driven by the manufacturing sector, which accounts for over 80% of the country’s total exports and 23% of the GDP. However, overall adoption is still low, mainly due to the high solution cost and intangible business case, as revealed by a recent study done by GlobalData. For example, the labour and utility costs are low in the country, making it challenging for enterprises to justify the investment needed to implement IoT solutions. An IoT solution that replaces a human role needs to cost less than the minimum annual wage in the country (US$3,100) before the enterprise can start seeing the cost benefits. In another example, a solution that offers 25% of energy reduction from street lights offers savings of only US$20 per light, per year. While the benefits are proven and promising, the total investment required for end-to-end IoT solutions (connectivity, devices, platform, security and services) is often higher than the cost benefits a solution can offer in Malaysia. Continue reading “TM ONE Smart Services: End-to-End IoT Solutions Tailored for Local Needs”→
• Alibaba Cloud’s partnership with Sena on Smart City initiative strengthens the provider partner ecosystem, especially with the domestic players.
• However, Alibaba Cloud’s City Brain still has limited customer references compared to other hyperscalers such as AWS and Azure. The cloud stack such as AWS Outpost and Azure Stack would enable cloud providers to address the data residency and edge compute requirements without having local facilities.
On May 23, 2019, Alibaba Cloud announced a collaboration with Sena Traffic System (Sena), Malaysia’s leading smart traffic controller, to build a smart traffic management in the country. In the partnership, Alibaba Cloud will provide its City Brain solution, cloud computing resources, and talent development programs while Sena will be responsible for the overall design and development of the traffic light systems as well as the deployment. Continue reading “Alibaba Cloud Strengthens Its ASEAN Presence, Penetrating into Domestic IoT Ecosystem”→
• ZTE’s NB-IoT Massive-connection and multi-service Virtual-verification Platform (NMVP) evaluates network performance and provides optimization suggestions to the network.
• While ZTE claimed the platform to be the first in the industry, competitors can build a similar solution and match the capabilities in no time.
Growing NB-IoT Adoption
Since NB-IoT was finalized in 2016, carriers have been enabling the technology in their networks for IoT deployments. To date, there are around 100 commercial NB-IoT networks available across the world. However, with only over 100 supported devices and about 20 chipsets available, the adoption is still relatively low compared to other wireless technologies. GlobalData shows that only 1.5% of the total IoT deployments today are based on NB-IoT while cellular technologies (e.g., 2G, 3G, and 4G) and wireline are still largely used (~75% of the total connections). Most NB-IoT networks today are still underutilized. However ZTE’s home market of China is the global NB-IoT leader, and is a natural fit to debut this type of platform. As the ecosystem grows, more devices will be available in the market and connected in the network, driving the overall traffic in NB-IoT network. Carriers will eventually face network congestions in the network which may cause disruptions to IoT applications. Continue reading “ZTE NMVP: Enabling Providers to Optimize Their NB-IoT Networks”→
NTT Communications recorded strong top-line performance in FY 2018, with revenue and income growth of 4.4% and 11.5%, respectively.
In FY 2019, the provider will focus on brand integration across NTT Communications, Dimension Data and NTT Security, as well as a vertical strategy through its ‘Smart World’ initiatives.
Earlier this month (May 10, 2019), NTT Communications released its FY 2018 results (ended in March 2019). The provider recorded strong top-line performance, with growth in revenue and income by 4.4% to 1,392 billion yen (~US$12.7 billion) and 11.5% to 132 billion yen (US$1.21 billion), respectively. This growth may not be so high in general, but it is impressive considering the slowdown in the telecom and ICT market. For example, compared with its regional peers, both Singtel and Telstra saw flat revenue in their latest financial year, with changes of only 0.6% and 0%, respectively. NTT Communications’ FY 2018 revenue also exceeded its target set a year prior, by 12 billion yen (US$110 million). The increase was mainly driven by the double-digit growth in cloud (12.0%), solution services (11.9%) and global business (11.2%). Continue reading “NTT Recorded a Strong FY 2018 and Revealed Its 2019 Plan”→
WiFi 6 is entering the market and will offer higher capacity, better security, and more efficient resource/device management.
As a successor to the current WiFi standard, it will be widely adopted in the mass market. There are also several benefits to enterprises.
WiFi 6, which is based on the IEEE802.11ax standard, is a logical progression of the current WiFi technology (IEEE802.11ac). It comes with various new features and updated technologies to offer higher network capacity and security as well as better device management. WiFi 6 has a theoretical peak speed of 9.6 Gbps, almost triple that of its predecessor (WiFi 5). This is achieved through updated wireless technologies such as orthogonal frequency-division multiple access (OFDMA) and multi-user, multiple-input, multiple-output (MU-MIMO) antenna systems. However, the gain in capacity is not just about offering a higher speed, but also about addressing the larger number of WiFi devices served by an access point (AP). Continue reading “WiFi 6 and Its Benefits to Enterprises”→
NEC completed its SDWAN trial with UniKL and was selected as the technology partner for the university’s SDx Center of Excellence.
While the collaboration offers an early-mover advantage, NEC needs to expand its ecosystem of partners to grab the bigger market opportunity in the country.
NEC Corporation announced the completion of its SD-WAN trial with the University of Kuala Lumpur (UniKL) in Malaysia on March 22, 2019. The initiative, which was funded by the Japanese government, used NEC’s own solution, ‘SD-WAN Security Common Platform,’ and covered several use cases such as virtualization and monitoring of end-to-end network traffic in multivendor environments, dynamic routing optimization based on application requirements, and central configuration of network switches across the university campuses. Following the successful collaboration, NEC has also been selected as the technology partner for UniKL’s newly launched SDx Center of Excellence, which brings together industry experts and researchers to co-develop solutions based on the latest networking technologies such as SDN, IoT, and 5G. Continue reading “NEC Collaborates with UniKL to Gain an Early Advantage in the Malaysia SD-WAN Market”→
Singtel is strengthening its IoT portfolio through a partnership with Microsoft by integrating a range of Azure capabilities into its network.
Its service coverage is still limited in Singapore, China and Australia (Optus) compared to the global IoT networks offered by competitors.
Singtel announced its partnership with Microsoft in February 2019 to launch an AI-powered IoT network over Microsoft Azure. This is achieved through integration of Singtel’s IoT network into Microsoft Azure cloud capabilities, including IoT Hub, IoT Edge, and other machine learning and cognitive services. Singtel has a comprehensive IoT portfolio with software-defined network capabilities, a range of technologies including LPWAN standards, a private IoT network for added security (‘IoTConnect+’), competitive pricing (as low as SGD1 per month for 10 MB on NB-IoT) and various solutions across industry verticals. The additional capability gained from the partnership with Microsoft complements the carrier’s IoT portfolio. The AI capabilities enable the carrier to deliver more efficient services, especially in the orchestration and automation of applications and workloads across IoT stacks (e.g., devices, network and clouds), thus accelerating enterprises’ business outcomes and the ROI. The cloud services offer scalable deployments, addressing the high upfront investments required by enterprises to implement IoT use cases. It also enables Singtel to retain its IoT leadership in Singapore and address the increasing demand in the key Asian hub. GlobalData research shows that 62% of 1,664 global enterprises interviewed (including 65% of 57 in Singapore) are making major or large investments in IoT in the next three years. The access to Microsoft’s vast range of development tools, developers and other packaged solutions enables the carrier to further strengthen its own IoT platform capabilities, while IoT Hub offers an additional platform option to its customers in addressing diverse market demands. Continue reading “Singtel Collaborates with Microsoft to Enhance Its IoT Portfolio”→
• NTT Communications’ Nexcenter Lab enables enterprises and technology providers to co-create solutions.
• However, the facilities are only available in Japan while the partner ecosystem is still limited.
NTT Communications launched the Nexcenter Lab program in two of its data centers in Tokyo earlier this month to drive innovation through collaborations among the carrier, technology providers and enterprises. The program enables development and testing of new solutions leveraging the latest services and technologies offered by the carrier and its partners including HPE, Dell EMC, RedHat, Intel, Oracle, and VMware. It also offers enterprises a free use of its server racks and cloud services. NTT group is well known for its research and development (R&D). It spends around US$2 billion a year in R&D to drive innovations, and has commercialized various products such as corevo (AI-based platform), COTOHA (AI-based virtual assistant engine), and CLOUDWAN (SD-WAN). While the group has a Global Innovation Center in California (NTT I3) with a focus on collaborations among technology players (end-user involvement is only in the commercialization stage), the Nexcenter Lab program is more customer-centric by providing enterprises with an opportunity to co-create solutions from the initial stage by sharing real-world requirements as an input to the product developments. Continue reading “NTT Communications Opens Nexcenter Labs to Drive Innovations Through Solution Co-creation”→