Cloud in Indonesia: How Businesses are Transforming

Cloud in Indonesia: How Businesses are Transforming

Cloud in Indonesia is getting much attention as the country makes its way to boosting its economic growth and dominating the digital economy in the Southeast Asia region. It may be the fourth most populous country in the world, but it is also the nation in Southeast Asia with the largest economy. And cloud giants have their eyes set on Indonesia for the deployment of its data center.

Amazon Web Services (AWS) and Google Cloud announced their plans to launch cloud in Indonesia, as reported by Data Center Dynamics. However, Alibaba Cloud was already a step ahead as it put up its second data center in the country this year.

At present, Indonesia is entering a phase where they openly welcome the digital age and is preparing the grounds for startups who would like considering to establish their IT systems on the cloud due to factors such as affordability and scalability. As for larger organisations, they are most likely to build data centres. 

Sutedjo Tjahjadi, PT Datacomm Diangraha’s managing director for cloud business, explained that startups could utilise cloud systems to create prototypes and get started on their companies quickly. Meanwhile, large companies that are already in operations are adopting cloud to meet their requirements and resource needs with consideration to the readiness of the market for cloud tech.

Additionally, Fanky Christian, the director and co-founder of PT Daya Cipta Mandiri Solus (DCM) shared that companies will not move to the cloud at the beginning; however, they will migrate standalone systems, such as its HR systems.

Despite the existence of regulations such as the Government Regulation 82 of 2012, which may impact data locality, Christian and Tjahjadi said that this is not a significant barrier to the adoption of the cloud.

Tjahjadi said that the operation of enterprise systems on an overseas cloud isn’t appealing. He noted that running SAP on a public cloud in another country, like Singapore, is going to be a challenge due to the required amount of expensive international bandwidth. He explained that it would depend on the type of applications and deployment.

Tjahjadi warned of hidden costs that may be impacted by the increase of cloud deployments and encouraged businesses to do their share in ensuring that cloud deployments are secured from cyber intrusions. Additionally, he explained:

“Putting the data in the cloud is a lot safer than an on-premises deployment…Protecting their data is the joint responsibility of both the cloud provider and the cloud user.”

Christian also explained that businesses must adopt a multi-cloud strategy, meaning cloud deployments are not limited to a single provider. He also added why human resources is an essential factor in successful digital transformation. He said:

“If you deploy in a data center, you will need the right talent to manage the facilities in the data center.”

He added that the same concept applies to the cloud, where the right expertise is needed to maintain a cloud deployment.

Ultimately, innovation is the key to Indonesian businesses. Tjahjadi concluded that companies should look beyond shifting to digital transformation as a way to reduce costs and consider how it can be used to encourage creativity and innovation using technologies.

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