Alibaba Cloud is set to launch its first data center in the Philippines by the end of the year as part of an aggressive plan to expand its presence in Southeast Asia.

The Chinese cloud provider will bring its suite of cloud services to the country, including Elastic Compute Service, databases, a content delivery network and storage services. It plans to target companies in the finance, retail and healthcare industries.

According to the Asia Cloud Computing Association Cloud Readiness Index 2020, cloud adoption in the Philippines has yet to mature due to factors such as international connectivity, data center risks and cybersecurity among others. Its ranking in the index went from ninth in 2018 to 11th in 2020.

This despite the government’s efforts to encourage cloud adoption through its cloud-first policy since 2017, including purchasing support to help government agencies access and compare offerings from different cloud providers.

In the private sector, however, some companies have started to roll out cloud services more widely. Globe Telecom, the Philippines’ largest telecommunications company, has moved most of its technology infrastructure to the public cloud.

He also undertook lift-and-shift migrations for legacy systems and is looking to develop more cloud native applications, according to Carlo Malana, CIO and senior vice president of Globe Telecom.

Alibaba Cloud’s first data center in the Philippines will likely give it a leg up on its global competitors – which have yet to set up cloud regions in the country – as cloud adoption by consumers. Filipino businesses are maturing.

With companies like Globe Telecom using public cloud services primarily hosted in Singapore, an Alibaba Cloud local data center would help reduce application latency while meeting local data protection regulations.

Elsewhere in Southeast Asia, a third Alibaba Cloud data center is planned in Indonesia, providing local businesses with access to database, security, network, machine learning and data analytics services.

The company said the additional facility would allow it to better support local businesses interested in adopting cloud technology and further Indonesia’s push towards a digital society.

According to Achim Granzen, senior analyst at Forrester, 45% of Indonesian companies use the public cloud to build new applications and services. Only a quarter cited the lower cost of infrastructure as the primary reason for using the public cloud, with time to market and access to innovation being the primary drivers of cloud adoption.

Selina Yuan, general manager of Alibaba Cloud Intelligence’s international business unit, said the company’s new investments were timely, “given the impact of the pandemic and the surge in demand for digital business tools “.

“Equally important is our focus on developing talent and nurturing a digitally competent workforce, which we see as a key challenge for many companies going forward,” said she added.

The company has committed $ 1 billion to a new initiative to build the region’s digital talent pool over the next three years through professional training and connecting startups with promising ideas with companies from across the board. capital risk.

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