Alibaba-Huawei compete fiercely to compete in the Southeast Asia Cloud Computing market.
On January 16, 2566, Nikkei Asia News Agency Alibaba Group Holding and Huawei Technologies, among Chinese technology companies, are reportedly rushing to build data centers in Southeast Asia to capture the hot market. Force for cloud computing
in november Huawei completes data center construction in Indonesia It has attracted about 30 local customers by the end of this year, said Jacky Chen, CEO of Huawei Indonesia. Through this project, the Group will be able to continue delivering digital innovation in Indonesia.
Indonesia is the third Southeast Asian country to host Huawei data centers, joining Thailand and Singapore. Over the next five years, Huawei will invest $3 million to develop cloud infrastructure in Indonesia.
In moving towards a connected society, cloud computing is a key industry on the same level as semiconductors. Huawei and other technology companies of China are keen to expand their business into Southeast Asia. This is due to the digital transformation caused by the pandemic.
Southeast Asia's digital economy is expected to grow 20% to $1.94 billion last year. According to a report by Google, Temasek Holdings and Bain & Co., data translation requirements in the region are driving data center demand.
Alibaba is focusing on opening data centers in various countries. in Southeast Asia They just built their first data center in Thailand last year. The group said it would spend $1 billion over three years, starting in 3, to develop the data center into an operation comparable in size to mainstream online retail businesses.
Southeast Asia will be the center of Alibaba's initiative to train 1 million employees in digital fields. and support 100,000 technology startups
Alibaba is not the only company that has assembled a large workforce to compete for share of the region's cloud market. in indonesia Huawei aims to train 100,000 engineers and similar experts and support 500 startups.
Meanwhile, the growth of China's cloud market has slowed: In the third quarter of last year, the Chinese market for cloud services grew just 3% from a year earlier to $8 billion, according to intelligence firm Canalys. industry
Although growth reached 50% in the first half of 2564, this year's economic slowdown has led China's technology sector to reduce investment. For the Asia Pacific region outside China The cloud computing market rose 30% to $8.7 billion in the third quarter of last year. The region now accounts for 3% of the global market for Chinese cloud companies. Southeast Asia is critical to growth.
However, Chinese players must contend with U.S. rivals Amazon, Microsoft and Google, which control about 70% of the Southeast Asian market combined. Amazon plans to spend $5 billion in Indonesia over the next 15 years. In 2564, the money will be used to build a data center that will expand Amazon's digital ecosystem.
However, Chinese tech companies will face big challenges in competing for market share from US giants. It is already embedded in government and corporate systems.
Analysts say Chinese players are looking to gain market share with lower prices. But Chinese cloud providers typically offer prices in Southeast Asia that are about half the prices of U.S. companies.
Narayan Intertrade Company, the Thai company behind the Naraya brand lifestyle products. It currently operates on Alibaba's cloud. One reason is that many of Narai Intertrade's customers are in China. Another reason is Cheaper than other cloud services
But doing business with Chinese cloud companies is risky because of tensions between the U.S. and China. The US State Department has warned American companies against using cloud services offered by Chinese providers due to national security concerns.
