New Delhi, May 11, 2018: How Data Centre Market Is Positioned in Malaysia?
Data centres are usually run by big corporations and government agencies to store and process their own data. However, in recent years corporations and government agencies have started outsourcing DC services from companies having expertise in building, operations and management of data centre. Smaller businesses are also seeking services from these data centre companies for their data storage and operational requirements. Companies are investing huge sums of money to safeguard their data and maintain continuous operations as success of companies nowadays depend smooth running of their software operations.
With a vision of enlisting Malaysia into the list of developed countries in the world, the Malaysian government has launched the Economic Transformation Program (ETP). Under this program, development of data centre hubs across the country is one of the key
Entry Point Projects (EPPs) under the Business Services NKEAs (National Key Economic Areas) of the Economic Transformation Program (ETP). Owing to the Government’s relentless efforts the country is evolving as an attractive destination for global corporations to outsource their data storage business. The revenue of the overall market has grown from USD ~ million in 2012 to USD ~ million in 2017, with a CAGR of ~% during 2012-2017.
Although, there is stiff competition from markets like Singapore, Hong Kong and Japan, the market in Malaysia is growing on the back of low overhead cost. Unlike countries like Singapore and Japan, the land available in Malaysia for development of data centre is abundant. Government has specifically dedicated hubs across the country and provides companies with special incentives/subsidies and rebates to establish companies in these hubs.
Which is More Preferred- Colocation or Managed Hosting?
Colocation refers to pure space rental, including private vaults, floor space, cage, or racks in different sizes. It includes basic infrastructure support such as power, cooling, basic network connectivity and physical security measures. Customers need to purchase their own servers and deploy their own in-house IT resources to manage the servers.
The Malaysia data centre market is largely dominated by the demand for collocation services. In 2017, of the total revenue generated by the data centre market, ~% of the share was contributed by colocation services which amounted to USD ~ million.
Colocation services are usually procured by companies that require large DC space for a longer duration of time. In Malaysia the major industries that use colocation services are banking & finance, government agencies and oil and gas sector.
Managed hosting services are usually procured by industries that do not wish to spend much on the handling of data, companies that do not have excessive data and only require small or medium space or companies that do not have expertise in handling and managing data. In Malaysia, these industries mainly comprise of IT & ITES (IT enabled services) companies, manufacturing companies, healthcare, retail, automotive, education, media and other industries.
Which are the Major Industries Procuring Data Centre Services in Malaysia?
In Malaysia the largest consumer for data centre services are banking, finance and insurance industry. In 2017, ~% of the total revenue generated by the data centre market in Malaysia was contributed by the Banking, Financial Services and Insurance (BFSI) industry.
These banking and finance companies majorly procure colocation services. The data stored by the companies from the BFSI industry is highly confidential and companies often implement extra security measures (apart from the security measures provided by the DC operator) for protection of the data.
To implement the business continuity plan, all the BFSI companies procure data centre services for both production and disaster recovery.
International BFSI companies contribute a larger share to the overall revenue of the Malaysian data centre market in comparison to the domestic BFSI companies.
The Federal Government of Malaysia has been the second largest customers of data centre services in the country. In 2017, ~% of the total revenue generated by the data centre market in Malaysia was contributed by the services procured by the Federal Government.
Content and Technology companies contributed around ~% share to the total revenue of the Malaysian data centre market in 2017. These companies procure a mixed share of services comprising of colocation, managed hosting and cloud services. A large percentage of these companies use data centre services to host websites. A significant percentage of clients from the content and technology industry procure disaster recovery services, however it is less than the clients from the BFSI industry
Which are the major regions having Clusters of Data Centres in Malaysia?
Cyberjaya in Selangor has the largest number of data centres in Malaysia. The Shah Alam area in the Selangor region has also witnessed construction of data centres in the past few years. In 2017, the data centres present in the Selangor region constitute around ~% of the total data centre floor space in the country. Cyberjaya has been named as the Multimedia Super Corridor (MSC) by the government under the plan to promote it as a robust ecosystem for data centres in the country.
The MDeC’s initiative to introduce the Inter Data Centre Network in 2015 by deploying an ultra-broadband backbone network interconnecting data centers in the state, has further highlighted the area as an attractive option for setting up a data centre in Malaysia
The data centres present in Kuala Lumpur collectively constituted around 15.3% of the total data centre space present in the country, in 2017. Kuala Lumpur is the national capital of the country and is the only global city in Malaysia with a bustling economy. The city has the second highest share of data centre space in the country owing to the demand from a large number of global and domestic companies.
Other major regions that have data centre companies are Penang and Sabah. These areas contribute a total of 2.1% to the total data centre floor space present in the country.
Major companies present in Penang region are VADS, AIMS and Exabytes. Major companies present in Sabah region are AIMS and Sabah Net Sdn. Bhd. With the development of the overall digital economy in Malaysia, these regions are also likely to witness rise in demand of data centres.
Future Growth of Malaysia Data CEntre Market
The Malaysian data centre market is likely to witness double digit year on year growth for the next five years. The market is expected to grow with a CAGR of ~% during 2018-2022. The overall revenues of the market is expected to grow from USD ~ million in 2018 to USD ~ million in 2022. Investments by the MDeC, focused approach by the government to develop the ICT infrastructure, development of new region for the IT industry and entry of new data centre companies in the market will fuel the growth of the industry in the future. Investments made by the Malaysian Digital Economy Corporation (MDeC) to establish datapark in Iskandar, Johor will further act as a catalyst for the market. Availability of reasonably priced land in Johor region which has close proximity to Singapore and the grant of special Multimedia Super Corridor (MSC) status by the government are likely to attract more Data Centre (DC) companies into the country.
Companies Cited in the Report
List of Companies Companies Covered in the Report
HeiTech Padu Players in Malaysia Data Centre Market
PLT Pro Data Centre
Key Topics Covered in the Report:
Comprehensive analysis of Malaysia Data Centre Market and its segments
Listed major players and their positioning in the market
Identified major industry developments in last few years and assessed the future growth of the industry
Value chain analysis of Malaysia Data Centre Market
Hosting Services Market
Malaysia Data Centre Market
Growth Data Center Investment Malaysia
Malaysia cloud computing market
Cloud Companies Malaysia
Malaysia Data Centre Revenue
Colocation Services in Malaysia
Data Center Providers Malaysia
Data center companies in Malaysia
Managed Hosting Services in Malaysia
Basis Bay Data Centre Malaysia Revenue
CSF Group Malaysia Revenue Data Centre
For more information on the research report, refer to below link:
Corporate Comm India(CCI Newswire)