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Microsoft ignites cloud wars in Indonesia, unveils first data centre region

Microsoft ignites cloud wars in Indonesia, unveils first data centre region

Tech giant takes aim at Google Cloud and Amazon Web Services

Haris Izmee (Microsoft)

Haris Izmee (Microsoft)

Credit: Microsoft

Microsoft has unveiled plans to launch a first data centre region in Indonesia, going head-to-head with Google Cloud and Amazon Web Services (AWS) in a landmark move designed to deliver cloud services locally, aligned to in-country data security and privacy laws.

While light on specifics in terms of timeframe, the public announcement sees Microsoft enter an increasingly competitive cloud race in Indonesia, following the launch of a Google Cloud Platform (GCP) region in Jakarta in June 2020, and AWS ambitions to establish an infrastructure region by early 2022.

Forming part of the Berdayakan Ekonomi Digital Indonesia initiative - which is tasked with driving digital transformation growth nationwide - the tech giant also aims to up-skill an additional three million Indonesians within the next 12 months, reaching a target of 24 million by the end of 2021.

According to IDC, the vendor’s investment in Indonesia is expected to generate up to US$6.3 billion in new revenues from the country’s ecosystem of local customers and partners. In addition, cloud-consuming businesses are expected to contribute 60,000 jobs to the local economy during the next four years.

“We’re proud to support Indonesian businesses and governments in their move to the trusted cloud with Microsoft,” said Haris Izmee, president director of Indonesia at Microsoft. “This announcement validates our Berdayakan Ekonomi Digital Indonesia initiative, to empower every person and every organisation in Indonesia to achieve more.”

Since establishing operations locally 26 years ago, the Microsoft ecosystem has evolved to now house more than 7000 channel partners across 17,000 islands, supported by over 150 employees.

“Leading companies such as Bukalapak, Pertamina and The Ministry of Agriculture have benefited from Microsoft’s global scale cloud services and have expressed their commitment to using Microsoft Cloud from the new region when it is available,” Izmee added.

Indonesia will now join a global portfolio of over 60 data centre regions under Microsoft control, allowing enterprise and public sector customers - as well as start-ups and developers - to capitalise on enhanced cloud services. Key offerings span computing, networking, databases, analytics, artificial intelligence (AI) and Internet of Things (IoT), backed by enterprise-grade data security and privacy with more than 90 compliance certifications.

“Microsoft has a long-term commitment to Indonesia’s growth,” added Jean-Philippe Courtois, executive vice president of Microsoft. “From e-commerce to agriculture, Indonesian businesses across all sectors are gaining a digital advantage with the agility, security and scale offered by Microsoft’s cloud services.

“With a local data centre region, businesses will have faster access to cloud services and the ability for data to be stored in country. To ensure everyone can take advantage of the digital opportunities ahead, we will continue to support digital skilling, with a new program that will reach over 24 million Indonesians by the end of 2021.”

To support increased demand for application resiliency, the new region will also feature Azure Availability Zones, operating as "unique physical locations equipped with independent power, network and cooling" for additional tolerance to data centre failures. Furthermore, the facility will support sustainability goals through a commitment to shift to 100 per cent supply of renewable energy in Microsoft data centres by 2025.

“Microsoft’s investment to establish local data centres, digital skilling and collaboration with the Government of Indonesia will support local innovation, economic recovery, and digital transformation,” said Johnny G. Plate, Minister of Communication and Information, Indonesia.

“The Ministry of Communication and Information welcomes Microsoft’s plans to establish a local data centre region with highly secure and compliant cloud services, which will benefit local businesses, government, and individuals across all sectors. We also welcome Microsoft’s commitment to increase the capacity of Indonesian digital talent across all skill levels.”

In operating as an Indonesian e-commerce platform, Bukalapak recently committed to Microsoft Azure as a preferred cloud platform, underpinned by plans to enhance offerings for millions of customers across the country.

As reported by Channel Asia, terms of the alliance will see the local unicorn leverage Microsoft’s expertise in building a “resilient cloud infrastructure” to support services for more than 12 million micro, small and medium enterprises, in addition to 100 million customers nationwide.

Meanwhile, Microsoft will make a strategic investment in the business, which was founded in 2010 and became a unicorn eight years later.

“Our partnership with Microsoft is transforming e-commerce and operations for merchants in Indonesia,” outlined Rachmat Kaimuddin, CEO of Bukalapak. “With a trusted local data centre region, we will help our 6.5 million merchants, seven million Bukalapak partners and more than 100 million customers achieve business resiliency in the face of the pandemic.

“Equally, our combined efforts in skilling merchants and our employees will empower the digital economy, improving employability, creating opportunities, and transforming lives.”


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