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Southeast Asia Modular Data Center Market
1. Southeast Asian Modular Data Center Market
Cost Effectiveness, Efficiency, and Speed to Delivery are the Key Value
Propositions
P6F8-27
May 2013
2. 2P6F8-27
Research Team
Suchitra Sriram
Program Manager—Asia-Pacific,
Energy and Power Systems
Suchitra.sriram@frost.com
Amit Kumar Singh
Senior Research Analyst—Asia-Pacific,
Energy and Power Systems
AmitS@frost.com
Lead Analyst Contributing Analyst
Research Director and Strategic Committee Leader
Ravi Krishnaswamy
Vice President,
Energy and Power Systems
kravi@frost.com
3. 3P6F8-27
Contents
Section Slide Numbers
Executive Summary 5
Market Overview 9
Total Modular Data Center Market -
• External Challenges: Drivers and Restraints 20
• Forecasts and Trends 33
Singapore Breakdown 45
Malaysia Breakdown 56
Thailand Breakdown 64
The Philippines Breakdown 74
Vietnam Breakdown 82
Indonesia Breakdown 91
Major Participants’ Profiling 99
End-user Analysis 113
6. 6P6F8-27
Executive Summary
Source: Frost & Sullivan analysis.
• One of the critical issues for data center operators in Southeast Asia (SE Asia) has been
the shortage of power and cooling capacity, and the lack of physical space for data center
expansion. As a result, scalable modular data centers have been used as an optimal
solution, with additional servers being placed along with the existing racks to create a
higher density per rack.
• A major growth driver for high performance computing has been the emerging regional data
centers in Southeast Asia, which have been providing the necessary infrastructure for
growth of key cloud service areas.
• Disaster recovery and data center augmentation have been identified as the key
application areas for modular data centers and this trend is expected to continue from 2012
to 2015.
• The companies from traditional IT segments and global power infrastructure have a strong
market presence in Southeast Asia.
• Modular data center designs provide deployment flexibility and scalability to end users,
thereby yielding substantial business and technological advantages as compared to the
conventional brick-and-mortar data centers.
• The Southeast Asian modular data center market was valued at $235.8 million in 2012 and
is likely to witness high growth to reach $475.4 million in 2017 at a CAGR of 15.1 percent
during 2012 to 2017. Singapore is the major market for the modular data centers in
Southeast Asia, contributing 61.3 percent of the regional revenue in 2012.
7. 7P6F8-27
Number of
Competitors*
Executive Summary—Market Engineering Measurements
Market Stage
Growth
Market Revenue
$235.8 M
(2012)
Customer Price
Sensitivity
7
(scale:1 [low] to 10 [High])
Degree of
Technical
Change
8
(scale:1 [low] to 10 [High])
For a tabular version click here.Stable IncreasingDecreasing
*Companies with more than $50 M revenue.
Base Year
Market Growth
Rate
14.9%
Compound
Annual Growth
Rate
15.1%
(CAGR, 2012–2017)
Average Price
Per MW Module
$5.0 M
(2012)
Market Size for
Last Year of
Study Period
$475.4 M
(2017)
15-17
(active market competitors in
2012)
Total Modular Data Center Market: Southeast Asia, 2012
Market Overview
Competitor Overview
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
(2012)
8. 8P6F8-27
Executive Summary—CEO’s Perspective
2
Availability of modular power and cooling
systems is going to ensure the adoption of
modular data centers in Southeast Asia.
3
The growing concern for greenhouse-gas
(GHG) emissions and declining profitability of
enterprises are likely to make a strong business
case for modular data centers.
4
Competition between power and cooling
manufacturers are likely to become stiffer, as
many IT vendors consider building up their own
resources of power and cooling components.
5
An increased number of backward and forward
vertical integration is expected in the data
center infrastructure value chain in order to gain
a competitive advantage in this emerging and
lucrative market.
1
In the data centers value chain, the data hosting
trend is seen shifting from end users to service
providers. Modular data centers will find their
place in the service providers’ portfolio.
Source: Frost & Sullivan analysis.
10. 10P6F8-27
Market Overview—Opportunity Assessment
• Huge increases in data handling and communication needs of conventional infrastructure sectors
(such as oil and gas), and growing data demand from the media, events, and exhibition sectors have
created an enormous opportunity for mobile/transportation applications.
• The research service aims to assess the market opportunity, competitive environment, and end user
analysis for the Southeast Asian modular data center market.
• In the wake of the negligible market presence of containerized data centers in Southeast Asia in
2012, the present study has estimated the modular data center as a whole, taking into account both
scalable and containerized data centers.
• Although scalable modular data centers constitute more than 97.0 percent of the total Southeast
Asian modular data center market in 2012, containerized data centers are expected to increase their
share from 3.0 percent in 2012 to more than 11.0 percent by 2017.
• Telecommunication, the Internet, banking, financial services, and insurance (BFSI), and the media
have been identified as the key end-user segments at the regional level.
Source: Frost & Sullivan analysis.
11. 11P6F8-27
Market Overview—Product Definition and Scope
Modular Data Centers: A modular data center is outfitted with server modules, power systems
(uninterruptible power supplies [UPS] and transformers), and cooling modules, among others. For the
context of this research service includes, both containerized and scalable modular data centers, which, as
the name suggests, are pre-engineered data centers built in containers.
• Scalable Data Center: A scalable data center is a type of modular data center that can be quickly
built and added to the existing data center facility.
• Containerized Data Center: This type of modular data center comes in a standard shipping
container that can be fabricated within 90 days and transported to the required site. It can be
installed and commissioned within three hours.
Product Scope
• Modular Data Center Supply and Construction:
o Power Supply System Module (UPS, switchgears, and so on)
o Server System Module (racks and options)
o Air Conditioning System Module
• Modular Data Center Management and Maintenance:
o Central Monitoring
o Remote Maintenance
Note: The modular data center types and products are not discussed in detail for this study.
Source: Frost & Sullivan analysis.
12. 12P6F8-27
Application
• Disaster Recovery: As a part of business continuity planning, a back-up is made to ensure
resumption of applications, data, hardware, electronic communications (such as networking), and
other IT infrastructure.
• High Performance Computing: Using IT technologies to perform high-speed computing without
putting pressure on the center's electrical and thermal capabilities.
• Data Center Augmentation: This implies the expansion of an existing facility.
End-user
• Government: Includes the Government and public facilities as well as educational facilities.
• BFSI: Includes banks, insurance, and diversified financial services.
• Telecommunication: Includes telecommunications facilities that provide telephony and data
communications.
• Internet and Media: Includes internet data centers, electronic and print media houses, and other
medium and large enterprises.
• Industrial and Manufacturing: Includes manufacturing plants and light industrial facilities.
• Energy: Constitutes oil and gas, and refineries, utilities, and mining.
• Education: Constitutes schools, colleges, universities, etc.
• Others: Others include logistics, retail, healthcare, transportation and hospitality.
Market Overview—Application and End user-based
Definitions
Source: Frost & Sullivan analysis.
13. 13P6F8-27
Market Overview—Study Scope
Competitor Analysis
• Market landscape
• Competitor benchmark studies on business operation practices and strategies adopted in
Southeast Asia
Market Assessment
• Country-level analysis
• Government policies
• Key market drivers and restraints analysis
• Market sizing and forecast
• Market demand analysis by key applications
End-user Analysis
• Demand analysis by end-user segment
• Key vendor selection criteria analysis
• Identification of key end-user requirements
• Purchasing pattern analysis
Source: Frost & Sullivan analysis.
14. 14P6F8-27
Market Overview—Opportunity Avenues
Scalable
• Telecommunication is the main adopter of scalable modular data centers, contributing to 21.0 percent
of the demand in 2012.
• Growing data demand from telecom equipment (DC power towers, base stations, and so on) is the
main demand driver for container/modular data centers in the telecommunication vertical.
• Demand from the logistics, hospitality, healthcare, and retail sectors is likely to follow to meet the
rising network demand and to improve operation efficiency through operation cost reduction and
energy efficiency.
• The demand from the BFSI and the government is expected to grow at a slower rate than the other
sectors because of the large data center users’ tendency to prefer traditional data centers.
Containerized
• The Internet and media are fast growing verticals in almost all Southeast Asian countries because of
the growing demand of cloud computing:
o Popular types of Internet and media include search engines, multi-media streaming, online
games, and online shops.
o Mobile devices such as smartphones and tablets are gaining popularity in Southeast Asia. The
concept of being always connected is driving the demand for cloud computing.
Source: Frost & Sullivan analysis.
15. 15P6F8-27
Source: Frost & Sullivan analysis.
Modular
Power and
Cooling
Infrastructure
Providers
Modular Data
Center
Manufacturers
Data Center
Service
Providers
End Users
Across
Various
Industries
UPS/Cooling
Modules
Scalable/
Containerized
Data Center
Units
Cloud
Computing/Data
Center Services
Cost-
Effective
IT
Solutions
Value Chain
Major Stakeholders in the Modular Data Center
1 2 3 4
16. 16P6F8-27
Source: Frost & Sullivan analysis.
Research Coverage
This research covers the following
countries:
Southeast Asia
• Singapore
• Malaysia
• Thailand
• The Philippines
• Vietnam
• Indonesia
Research Period
• Study Period: 2010 to 2017
• Base Year: 2012
• Forecast Period: 2013 to 2017
Total Modular Data Center Market: Geographic Scope,
Southeast Asia, 2010–2017
Geographic Scope
17. 17P6F8-27
Revenue Scope
Source: Frost & Sullivan analysis.
Revenue Scope
• The market size has been calculated only for modular data center infrastructure elements (covering
power, cooling, and racks) and will exclude the actual IT hardware (like servers) and computing
software components.
• The market size is an aggregation of the revenue earned by all the vendors in a given geography by
undertaking activities including modular data center supply and construction.
• The dollars used are constant US dollars and represent the revenue from the supply and construction
of modular data centers.
• The revenue figures in this study exclude services such as installation, training, testing, commissioning,
and maintenance, and so on.
• The revenue is based on the base year exchange rates in the respective countries in Southeast Asia.
• The study does not take into account the political, geographical, and inflation uncertainties for the
forecast period.
Country Exchange Rate (Local Currency to the US Dollar)
Indonesia 0.0001
Malaysia 0.3099
Singapore 0.7336
South Korea 0.0009
Thailand 0.0313
The Philippines 0.0221
Vietnam 0.0001
Exchange Rates, Southeast Asia, 2012
18. 18P6F8-27
Key Questions This Study Will Answer
Source: Frost & Sullivan analysis.
Is the Southeast Asian modular data center market growing? How long will it continue
to grow, and at what rate?
Are the existing competitors structured correctly to meet the customers’ needs?
How will the structure of the market change with time? Is it ripe for acquisitions?
Are the products/services currently offered meeting customer needs, or is additional
development required?
Are the vendors in the space ready to go it alone, or do they need partnerships to take
their business to the next level?
21. 21P6F8-27
MarketDriversMarketRestraints
1-2 Years 3-4 Years 5th Year
Growing demand for data centers and cloud
computing services
Increasingly stringent standards on environment and
energy consumption
Higher construction cost of containerized and scalable
modular data centers
Rising demand for cost-effective data center
operations requiring standardised solutions
Customers’ low awareness on the benefits of
modular architecture
Government support for ICT infrastructure growth
Technical challenges hinder adoption of modular data
centers
Impact: High Medium Low
Total Modular Data Center Market: Key Market Drivers and Restraints, Southeast Asia, 2013–2017
Staggered investments driving the demand for
modular data center concept
Security concerns stopping the end users to opt for cloud
services
Economic and political instability
Drivers and Restraints
Source: Frost & Sullivan analysis.
22. 22P6F8-27
Growing Demand for Data Centers and Cloud Computing Services
• The modular data center market has witnessed rapid development in Southeast Asia due to strong
business growth and the phenomenal increase in internet subscriptions.
• Key countries that have emerged as data center hubs include Singapore, and to a lesser extent,
Malaysia. Singapore continues to retain its status as a regional hub for data centers.
• Indonesia: High-speed broadband infrastructure expansion has commenced in major Indonesian cities.
For instance, 4,25,000 km of the Palapa Ring fiber-optic cable laying project have been completed as of
September 2011 of the planned 52,500 km. There has been a growing rush among multinational
companies (MNCs) to set up new data centers in Indonesia to strengthen their positioning in Indonesia.
Besides, domestic companies are keen to set up new data centers and data recovery centers in the
country.
• Malaysia: The Government plans to raise the broadband penetration rate from 40.0 percent to 75.0
percent by the end of 2015. This is being achieved through a combination of high-speed broadband (up
to 100 Mbps) in high economic impact areas (such as Greater Kuala Lumpur/Klang Valley) and
broadband to the general population (below 5 Mbps) in semi-urban and rural areas.
• Thailand: The demand for containerized and scalable modular data centers is expected to be driven by
increasing data center co-location and managed hosting. Co-location allows multiple customers to locate
network, server, applications, and storage gear and inter-connect to various service providers with
minimum cost and complexity.
• Vietnam: Rapid economic growth has made the country an attractive foreign investment destination in
Southeast Asia. Its strong GDP growth boosts both local and foreign investors’ confidence level in
business expansion, which will subsequently stimulate the demand for data center infrastructure.
Drivers Explained
Source: Frost & Sullivan analysis.
23. 23P6F8-27
Drivers Explained (continued)
• Operating costs of data centers have increased exponentially in recent times. Power can cost as
much as over 50.0 percent of the overall operational cost of a data center. Besides, real estate pricing
is another factor that contributes to the high cost of operations. The modular data center design allows
for tightly controlled capital expenditure, with a low PUE (Power Usage Effectiveness) and low cost
maintenance, delivering an extremely low operational overhead.
• Malaysia is planning to increase its data center floor space from 0.5 million square feet in 2010 to 2.5
million square feet by 2015 and 5 million square feet by 2020. Outsourcing Malaysia (OM) will set up
a data center focus group consisting of 16 key data center companies and collaborate with the
Multimedia Development Corporation (MDeC) to improve the ease of data center operations of foreign
companies operating in Malaysia.
Rising Demand for Cost-effective Data Center Operations Requiring Standardised Solutions
Source: Frost & Sullivan analysis.
24. 24P6F8-27
Drivers Explained (continued)
Government Support for ICT Infrastructure Growth
• Governments across Southeast Asia have extended huge support towards the development of national
ICT infrastructure. Initiatives such as “e-governance”, “e-ready nations”, and next-generation broadband
have helped improve the ICT landscape of many countries. This has spawned huge investments in IT
infrastructure, which intends to act as the backbone for supporting content and applications. These
backbone networks have created an internet savvy population that demands rich content, collaboration,
and other web applications. This factor is one of the key drivers in the data center space in Southeast
Asia, which subsequently increases the market potential for both containerized and scalable modular
data centers.
Indonesia
• In Indonesia, the Government has undertaken some initiatives, especially in conducting strategic
meetings with major global companies to promote the country as an IT and telecom business center in
Southeast Asia. It has established direct contact with reputed companies such as Google Inc. and
Research in Motion (RIM) to encourage them to set up their data center hubs in Indonesia.
• Besides, electricity subsidy is likely to be rationalized completely by 2014, and this may boost energy
efficiency awareness as a result of the higher electricity tariff. This, in turn, is likely to generate significant
interest in modular and containerized data centers due to their high energy efficiency in power and
cooling solutions, and the “build as you grow” approach.
Malaysia
• Strong Government initiatives have helped to promote Malaysia as a world-class data center hub. The
industry and the Government are working together to improve credibility through benchmarking services
and develop human capital to capitalize on higher value managed services. Source: Frost & Sullivan analysis.
25. 25P6F8-27
Drivers Explained (continued)
Singapore
• The Singapore Government plans to make the country a data center hub by 2013. By setting up an
impressive data center facility, Singapore will serve to attract world-class media and Internet companies
that can host their content and services with ease. This will subsequently attract more Internet traffic and
international network providers to Singapore.
Thailand
• The ICT Master Plan (2009‒2013) established five strategies for the development of the country and a
knowledge-based society: e-Industry, e-Commerce, e-Government, e-Education, and e-Society. The
initiative is expected to subsequently create an enormous market for data centers.
Vietnam
• The Vietnamese Government has continued to place a heavy emphasis on developing its ICT landscape,
with telecommunications being one of the top priorities. With Vietnam’s “Strategy for Development of ICT
Industries”, it is estimated that the country’s ICT sector is likely to achieve an annual growth rate of 20.0
to 25.0 percent.The Government’s commitment has given the investors a major boost in confidence.
The Philippines
• The Philippines Government has placed a high emphasis on the development of the nation’s ICT
environment commissioning the leading agency, the Commission on ICT (CICT).
Source: Frost & Sullivan analysis.
26. 26P6F8-27
Drivers Explained (continued)
• The CITC is in charge of driving the Government’s ICT agenda. Some of its projects include the
development of the Philippine Cyber Corridor, e-government initiatives, human capital development,
and bridging the digital divide. For example, following a model similar to Singapore’s One Map project,
which provides an online base map for all Government agencies, the Philippines’ ‘One Nation One
Map’ (www.onenationmap.gov.ph) would be used by 23 agencies already committed to the project.
• Moreover, with continued Government support and a greater collaboration between the different
stakeholders and businesses, the IT and BPO industry in the country grew 26.0 percent to $8.9 billion
in 2012 and is expected to grow at 25.0 percent year-on-year. These proactive initiatives are expected
to help in the development of the data center business.
Source: Frost & Sullivan analysis.
27. 27P6F8-27
Drivers Explained (continued)
• There is a growing demand for shorter data center construction time. Many companies in Singapore
tend to require immediate expanded data processing capabilities and cannot wait up to two years for
the construction to be completed. With escalating energy costs, stringent standards are being
increasingly introduced to encourage and if necessary penalize large users of grid resources through
initiatives such as the Carbon Reduction Commitment. Energy-efficient modular data centers have
emerged as a solution to enhance the energy efficiency of data center operations.
Increasingly Stringent Standards on Environment and Energy Consumption
• Containerized and scalable modular data centers are a viable option for a growing number of
Southeast Asian companies facing a high degree of uncertainty. The flexibility of scaling and
rightsizing helps to minimize the risk emerging from an unstable economy and subsequent
uncertainty in businesses.
• The greatest strength of the Philippines’ data center market is its low CAPEX and OPEX for running
a data center.
• Low land and labor costs have enabled data center operators to operate their businesses with a
relatively high margin. This will attract more new data center investments and subsequently
increase the demand for modular data centers as well.
Staggered Investments Driving the Demand for Modular Data Center Concept
Source: Frost & Sullivan analysis.
28. 28P6F8-27
• The construction cost of a traditional data center varies between $10.0 and $15.0 million per MW,
whereas for containerized and scalable modular data centers, it costs $17.0 million-$20.0 million per
MW, which is 70-100 percent higher than that of traditional data centers. Such high costs discourage
traditional data center operators from using containerized and modular data centers as substitutes. This
trend is more pronounced in large-scale data centers (above 2,500 square feet) such as the
Government and BFSI verticals.
• High upfront investments on modular data centers might discourage end users from switching to
modular data centers from traditional data centers.
• Indonesia is blessed with a large geographical area. However, the development of IT infrastructure is
inconsistent across different islands. The long delayed plan to lay fiber optic cables in eastern
Indonesia, particularly Sulawesi, Maluku, and Papua, has lead to incomplete network coverage across
the country.
• Malaysia’s initiative to establish itself as a world-class data center hub is hindered by the high
bandwidth cost. Malaysia’s bandwidth cost varies from approximately $30 to $ 80 per megabits per
second per month, which is two times higher than Singapore and three times higher than Hong Kong.
Higher Construction Cost of Containerized and Scalable Modular Data Centers
Restraints Explained
Source: Frost & Sullivan analysis.
29. 29P6F8-27
Restraints Explained (continued)
Customers’ Low Awareness on the Benefits of Modular Architecture
• There may be a lag time when containerized and modular data centers educate their customer base
accustomed to traditional data centers. This trend indicates that this market is likely to be very “niche”
during the short term of the forecast period. Once customers are educated, they are expected to
actively adopt to modular data center designs that have been previously implemented by industry
leaders such as Google Inc., Containerized soft, and Yahoo.
• Compared to other neighboring countries, the data center business in Indonesia is still in a
development stage and considered weak. Generally, only companies with more than 500 employees,
either in-house or outsourced, are willing to invest in data centers.
• In Thailand, the broadband penetration rate is considerably low when compared to neighboring
countries such as Singapore and Malaysia. The market demand for data centers is further restrained
by the high broadband bandwidth cost.
• Broadband penetration in Vietnam is one of the lowest in Southeast Asia—six subscriptions out of
every 100 people. This factor remains a major hindrance in data center expansion as the demand for
rich media content is low. Besides, with the increasing level of complexity in data center operation, lack
of competent and skilled manpower has become one of the restraints in data center expansion.
• Large-scale data center users (the size of data centers is above 2,500 square feet, 80-100 Racks)
such as the Government and BFSI companies have a tendency to stick to traditional data centers
because of higher cost of constructing containerized and scalable modular data centers. These end-
user segments constitute almost 40.0 percent of the traditional data center market and penetrating
them has been one of the major challenges faced by vendors.
Source: Frost & Sullivan analysis.
30. 30P6F8-27
Restraints Explained (continued)
Technical Challenges Hinder Adoption of Modular Data Centers
• Although containerized and scalable modular data centers offer flexibility, shorter time of deployment,
and cost advantages, they are not a solution for every data center operator because of the following
challenges posed by them:
o Physical Risks–Containerized and scalable modular data centers can be exposed to outside
elements such as severe weather, malicious intent, vehicle traffic (if placed in a parking lot), and
animal and insect infestation.
o Restrictive form Factor–Containerized and scalable modular data centers are big “chunks” of
power and cooling capacity and, although mobile, they do present some challenges when it
comes to relocation. These blocks may be too heavy to place on the roof of a building.
o Serviceability–Some facility power and cooling modules have doors located on the outside,
which are the means by which service people can access the back of the equipment. When
these doors are open, the physical infrastructure equipment is exposed to heat, moisture, dust,
cold and other potentially harmful outdoor elements.
o Transportation–Non-standard wide loads require special permits and in some cases escorts,
which increases the cost of transporting containerized/ scalable modular data centers.
• Although telecommunication links have improved rapidly in recent years under government initiatives,
the overall IT infrastructure standard is still lagging in few countries such as the Philippines. Internal
and outgoing international optical cable connections are also still sparse.
Source: Frost & Sullivan analysis.
31. 31P6F8-27
Restraints Explained (continued)
Security Concerns Stopping the End Users to Opt for Cloud Services
• As Containerized data center are easily transportable, security issues become one of the major
restraints for the market. Fear of data privacy intrusion needs to be overcome by educating the
customers pertaining to security features such as perimeter fencing, access control, CCTV etc.
• The Philippines: The number of strikes and lockouts in the Philippines has decreased, nevertheless
the historical records have created a negative reputation for the country. To a certain extent, this will
negatively influence the decision of MNCs considering the Philippines as an offshore place to co-
locate or host their servers, which subsequently affect prospective demand for data center
infrastructure including modular data centers.
• Thailand: A major restraint for containerized data center is the security concern as it is easily
moveable. The lack of stringent law against privacy and trust contributed to the security concerns.
Source: Frost & Sullivan analysis.
32. 32P6F8-27
Restraints Explained (continued)
Economic and Political Instability
• The recent credit crises in the United States and Europe created economic instability in Southeast
Asia, affecting investments in data center infrastructure.
• The Philippines: Unfavorable business environment affects market size expansion. In the
Philippines, foreign companies and investors are not permitted to own any land and they are
mandated to get the consent of many parties before implementing any project. On an average, it
takes nearly two months to enforce a contract and up to six years to settle an insolvency.
• Thailand: The political turmoil during the past few years has left an unfavorable impression of
Thailand among the multinational companies. Many multinational companies are reluctant to host
their servers in Thailand, which subsequently affects the demand for data center infrastructure.
• Vietnam: Organizations and individuals in Vietnam have yet to invest or to have full awareness
about network security and data protection. The risk of data and security breaches discourage data
center hosting in Vietnam.
Source: Frost & Sullivan analysis.
34. 34P6F8-27
MEASUREMENT NAME MEASUREMENT TREND
Market Stage Growth -
Market Revenue (2012) $235.8 M ▲
Average Price Per MW Module $5.0 M ▼
Market Size for Last Year of Study Period (2017) $475.4 M ▲
Base Year Market Growth Rate (2012) 14.9% ▲
Compound Annual Growth Rate (CAGR, 2012–2017) 15.1% -
Customer Price Sensitivity (scale of 1 to 10, Low to High) 7 ●
Degree of Technical Change (scale of 1 to 10, Low to High) 8 ▲
Market Engineering Measurements
TREND
Decreasing Stable Increasing
▼ ● ▲ Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Total Modular Data Center Market: Southeast Asia, 2012
Market Overview
MEASUREMENT NAME MEASUREMENT TREND
Number of Competitors (active market competitors in 2012)* 15-17 ●
Competitor Overview
*Companies with more than $50 M revenue.
35. 35P6F8-27
Forecast Assumptions
• The growth of various market segments in Southeast Asia will create the need for incremental data
storage, which, in turn, will attract investments in switching to options such as modular data center in
the region.
• Investments in IT applications by various enterprises in the banking, logistics, and Government
sectors is expected to drive the Southeast Asian modular data center market.
• The stabilized economy in Southeast Asia will lead to a sustainable GDP growth, which will
contribute to revenue growth of its modular data center market.
• Emerging trends in data centers such as cloud computing and increases in high heat density due to
server consolidation will be prevalent in the Southeast Asian modular data center market.
• Major competitive forces including the buyers’ bargaining power and the demand for cost-effective IT
solutions will shape the competitive landscape in Southeast Asia during the forecast period.
• The potential of emerging technologies in the market will be getting stronger over the forecast period
as the demand for more efficient and economical systems increases.
Source: Frost & Sullivan analysis.
36. 36P6F8-27
2010 2011 2012 2013 2014 2015 2016 2017
Revenue 178.6 205.2 235.8 269.9 306.3 350.4 403.7 475.4
Growth Rate - 14.9 14.9 14.5 13.5 14.4 15.2 17.8
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
500.0
GrowthRate(%)
Revenue($Million)
Total Modular Data Center Market—Revenue Forecast
Key Takeaway: The Southeast Asian modular data center market is likely to be driven by the increased
scale of operations across major end users there.
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Total Modular Data Center Market: Revenue Forecast, Southeast Asia, 2010–2017
CAGR = 15.1%
Year
37. 37P6F8-27
Revenue Forecast Discussion
• The Southeast Asian modular data center market was valued at $235.8 million in 2012 and is likely to
witness significant expansion to reach $475.4 million in 2017 at a CAGR of 15.1 percent between
2012 and 2017.
• Increasing focus on operational efficiency improvement of data centers, the growing demand for data
center scalability, and capital and operational cost reduction are the major driving elements for this
market.
• Telecommunication is the main adopter of scalable modular data centers and contributed to 7.3
percent of the demand in 2012. Growing data demand from telecom equipment (DC power towers,
base stations, and so on) is the main demand driver for container/modular data centers in the
telecommunication vertical.
• Demand from the logistics, hospitality, healthcare, and retail verticals are likely to follow for meeting
the rising network demand and to improve operational efficiency through operational cost reduction
and energy efficiency.
• The demand from the BFSI and the government verticals are expected to grow at a slower rate than
the other sectors because of large data center users’ tendency to prefer traditional data centers.
• Internet and the media is a fast growing vertical in almost all Southeast Asian countries because of
the growing demand for cloud computing. Popular types of Internet and Media include search
engines, multi-media streaming, online games, and online shops. Mobile devices such as
smartphones and tablets are gaining popularity in Southeast Asia. The “always connected” concept is
driving the demand for cloud computing services.
Source: Frost & Sullivan analysis.
38. 38P6F8-27
2012 2017
Disaster Recovery 44.4 99.0
High Performance Computing 71.8 137.4
Data Center Augmentation 119.6 238.6
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
500.0
Revenue($Million)
CAGR
(2012‒2017)
13.9%
14.8%
17.4%
Total Modular Data Center Market—Revenue Forecast by
Application
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Total Modular Data Center Market: Revenue Forecast by Application, Southeast Asia, 2012 and 2017
Year
39. 39P6F8-27
Revenue Forecast by Application Discussion
• Data center augmentation, high performance computing, and disaster recovery have been identified
as the key applications of scalable modular data centers.
• The Southeast Asian modular data center market is expected to experience growth in the range of 15
percent from 2012 to 2017 in all the three applications.
• Mission critical applications are increasingly being used in most of the corporations, particularly in the
BFSI and internet and media verticals. Infrastructure failure can cause significant losses to the
business.
• Data center augmentation is the largest target application for scalable modular data centers and this
trend is expected to continue from 2012 to 2017.
• A major driver for the growth of High Performance Computing has been the new regional data centers
in Southeast Asia that are emerging to provide the necessary infrastructure for the growth of key
cloud service areas.
• One of the major drivers for disaster recovery applications is the demand from the BFSI end-user
segment requiring a higher level of business continuity readiness.
Source: Frost & Sullivan analysis.
40. 40P6F8-27
2010 2011 2012 2013 2014 2015 2016 2017
The Philippines 5.0 5.0 5.0 5.0 5.1 5.1 5.0 4.8
Vietnam 3.0 3.3 3.6 3.8 4.0 4.1 4.4 4.6
Malaysia 20.9 21.0 21.1 21.4 21.8 22.2 22.7 23.0
Thailand 7.4 7.3 7.6 7.9 8.3 8.7 9.0 9.5
Singapore 62.1 61.9 61.3 60.4 59.4 58.4 57.4 56.7
Indonesia 1.6 1.5 1.4 1.4 1.4 1.5 1.5 1.4
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Revenue
Key Takeaway: Vietnam is expected to be the fastest growing market due to the high foreign direct
investment in the country and the rapid growth of internet users.
Total Modular Data Center Market—Percent Revenue
Forecast by Country
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Total Modular Data Center Market: Percent Revenue Forecast by Country, Southeast Asia, 2010–2017
Year
41. 41P6F8-27
Revenue Forecast by Country
Year
Singapore
($ Million)
Malaysia
($ Million)
Thailand
($ Million)
The
Philippines
($ Million)
Vietnam
($ Million)
Indonesia
($ Million)
2010 110.9 37.3 13.2 9.0 5.4 2.8
2011 127.0 43.0 15.0 10.3 6.8 3.1
2012 144.6 49.8 17.9 11.7 8.4 3.4
2013 163.1 57.7 21.4 13.5 10.3 3.9
2014 181.9 66.8 25.5 15.6 12.1 4.4
2015 204.6 77.7 30.6 17.9 14.5 5.1
2016 231.8 91.8 36.3 20.1 17.7 6.0
2017 269.7 109.2 45.1 22.6 22.0 6.8
CAGR (%) 13.3 17.0 20.3 14.1 21.2 14.9
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Total Modular Data Center Market: Revenue Forecast by Country, Southeast Asia, 2010–2017
42. 42P6F8-27
Some of the major modular data center projects are located in the following countries:
Source: Frost & Sullivan analysis.
Vietnam:
Dot VN and Elliptical Mobile Solutions
(EMS) formed a partnership to bring
turnkey mobile data center solutions for
internet data center projects.
Malaysia:
International Business Machine (IBM)
successfully deployed its Portable
Modular Data Center (PMDC) in an
electronics manufacturing company.
Singapore:
I/O has executed a project with
its “I/O anywhere”.
Regional Hot Spots
43. 43P6F8-27
Demand Analysis by End User
Government
7.1%
BFSI
13.1%
Telecommunication
7.3%
Internet and Media
21.5%
Industrial and
Manufacturing
16.9%
Energy
10.7%
Others*
23.4%
*Others include logistics, retail, healthcare, transportation, and hospitality.
Percent Sales Breakdown by End User
Total Modular Data Center Market: Southeast Asia, 2012
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
44. 44P6F8-27
• The Internet and Media vertical has been the highest user of scalable modular data centers due to
the growing demand for cloud computing services.
• The industrial and manufacturing vertical shows the second highest demand at a 16.9 percent market
share in 2012, in the wake of rise in high-technology manufacturing plants for electronics and
automobile industries.
• Energy and BFSI are witnessing strong investment and business expansion in the region, leading to
demand for modular data centers.
• Governments of various economies are encouraging investments in nation-wide developmental
projects, culminating in the demand for data centers.
Demand Analysis by End User Discussion
Source: Frost & Sullivan analysis.
46. 46P6F8-27
2010 2011 2012 2013 2014 2015 2016 2017
Revenue 110.9 127.0 144.6 163.1 181.9 204.6 231.8 269.7
Growth Rate - 14.5 13.9 12.8 11.5 12.5 13.3 16.4
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
0.0
50.0
100.0
150.0
200.0
250.0
300.0
GrowthRate(%)
Revenue($Million)
Key Takeaway: Data center augmentation and high performance computing are the two major target
applications for modular data centers, and this trend is expected to drive the market’s growth during
the forecast period.
Singapore Modular Data Center Market—Revenue
Forecast
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Year
Modular Data Center Market: Revenue Forecast, Singapore, 2010–2017
CAGR = 13.3%
47. 47P6F8-27
• Singapore is the major market for modular data centers in Southeast Asia, accounting for 61.3 percent
of the revenue share of the total Southeast Asian modular data center market in 2012. The modular
data center market in Singapore was valued at $144.6 million in 2012 and is expected to reach $269.7
million by 2017 at a CAGR of 13.3 percent during 2012 to 2017.
• The major favorable factors in Singapore are the presence of a strong basic infrastructure that is
required to host data centers, its strategic location for hosting data centers in Southeast Asia, the
country’s sufficient pool of highly technically literate and multi-lingual info-comm talent, and strong
Government initiatives to make the country a data center hub by 2013.
• Singapore is witnessing increased investments from MNCs that perceive it to be a focal point for their
cloud computing push in Southeast Asia. In March 2011, IBM highlighted the opening of its new cloud
data center in Singapore and has invested $38 million towards addressing the cloud computing needs
in Southeast Asia. In 2010, India’s largest data center provider, Tata Communications, opened its first
data center in Singapore.
• The country continues to retain its status as a regional destination with superior infrastructure that
delivers ICT services to the Southeast Asia region. Most of the global data center and telecom service
providers continue to favor Singapore as the ideal location for their data centers, thereby bringing in
significant investments. A Fortune 100 transnational healthcare and pharmaceutical corporation
located at Tuas Biomedical Park (TBP) II has built an integrated Southeast Asian regional data center
with $11 million worth of investments.
Singapore—Revenue Forecast Discussion
Source: Frost & Sullivan analysis.
48. 48P6F8-27
• The Green Mark for data centers is currently being developed jointly by Singapore's Infocomm
Development Authority (IDA) and Building and Construction Authority (BCA). Pilot studies are being
conducted at a few data centers.
Source: Interviews with the BCA and Land Transportation Authority in Singapore; Frost & Sullivan analysis.
• The IDA-BCA Green Mark for data centers has been launched in June 2012.
• The criteria for a Green Mark certification for a data center is based on traditional
data center. A draft framework of Green Mark for data center is shown in the next
slide.
• Currently, the Singapore Standard for Green Data Center (SS564) is being used
to provide data centers with a framework and methodology to achieve energy
efficiency.
Government Support for Data Centers
49. 49P6F8-27
2012 2017
Disaster Recovery 21.6 48.5
High Performance Computing 50.6 89.1
Data Center Augmentation 72.4 132.1
0.0
30.0
60.0
90.0
120.0
150.0
180.0
210.0
240.0
270.0
300.0Revenue($Million)
CAGR
(2012‒2017)
12.0%
12.8%
17.6%
Singapore Modular Data Center Market—Revenue
Forecast by Application
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Year
Modular Data Center Market: Revenue Forecast by Application, Singapore, 2012 and 2017
50. 50P6F8-27
Scalable Modular Data Centers
• Growing high-density data demands from the Internet and media, and industrial and manufacturing
verticals, along with the Government’s initiatives driven by the Media Development Authority (MDA)
and IDA, continuously stimulate the growth of High Performance Computing applications.
o MDA announced that it would be investing S$500 million over a period of five years to foster the
development of digital media applications and content.
o IDA is establishing a data center park (DCP) to strengthen Singapore’s position as an economic
and information technology hub.
o It aims to attract multinational banks, media companies, and large carriers. The proposed DCP
will occupy up to 12 hectares, making it one of the highest data centers in the world.
• As Singapore emerges as a regional data center hub, the demand for data center expansion is
expected to grow, which translates into more frequent use of scalable modular data centers as a way to
cope with the challenges that most of data centers operators in Singapore currently face, including
limited space and uncertain business prospects.
Revenue Forecast by Application Discussion
Source: Frost & Sullivan analysis.
51. 51P6F8-27
Containerized Modular Data Centers
• Singapore’s containerized modular data center market is picking up as data center operators are
realizing the possibilities of a portable and mobile solution.
o Containerized modular centers—designed around power, space, and time efficiency—are
perceived as the ‘new-age data centers’ among data center operators.
o Growing demand for containerized modular data centers is being witnessed among the
companies in the construction and oil and gas sectors, which need mobile data centers that can
be deployed at remote sites.
Revenue Forecast by Application Discussion (continued)
Source: Frost & Sullivan analysis.
53. 53P6F8-27
Scalable Modular Data Centers
• The Internet and Media companies have been using Singapore as a hub to disseminate regional
content.
• With Singapore’s status as a manufacturing hub, particularly in high-tech and pharmaceutical
manufacturing, many companies facing issues such as lack of space for data centers and uncertainty
of business prospects, demonstrate a high preference for using scalable modular data centers
because of scalability, shorter time to deployment, and fulfillment of high performance computing.
• As consolidation of financial institutions and relocation of local data centers to regional data centers
increase the required size of data centers, end users in the BFSI vertical tend to stick to traditional
data centers that can be constructed at a lower cost.
• Similarly, the Government, another large-scale data center end-user segment, prefers traditional data
centers because of their cost effectiveness.
Demand Analysis by End User Discussion
Source: Frost & Sullivan analysis.
54. 54P6F8-27
Containerized Modular Data Centers
• I/O is currently running a pilot project with its ‘I/O Anywhere Systems’ in Singapore.
o The capacity of I/O’s Singapore data center is a 100 MW-type location from a core capacity
perspective.
o Singapore will have a site similar to Phoenix and New Jersey: Phase I of the Phoenix facility is
more than 530,000 square feet while the New Jersey data center (currently being built) is being
developed over an area of more than 800,000 square feet.
o I/Ois planning to launch the Singapore data center by 2012.
• Containerized modular data centers can be used in film production, where companies could use the
data centers on location to carry out computing-intensive tasks such as editing, without having to
physically send tapes or data back and forth to other sites.
• ‘I/O Anywhere Systems’ would also be suited to events and exhibitions, where the data center could
be used to provide computing services to multiple exhibitors.
Demand Analysis by End User Discussion (continued)
Source: Frost & Sullivan analysis.
55. 55P6F8-27
Vendor
Selection
Criteria
Procurement
Process
Typical
Suppliers
• Open tender or closed tendering, depending on the project size and
requirements.
• Most procurement decisions taken by in-house procurement teams.
o Procurement from vendors or distributors based on the availability of price
discount and additional services.
• Typical Sales Cycle: 2-3 months
Operation Cost
IBM HP Cisco
Energy
Efficiency
Initial Capital
Investment
Technical
Features
Conformance
Key Required
Specifications
Service
Availability
Availability of
Back-up Power
Equipment
Smoke
Detection
Systems
Emergency
Power-off
Functionality
Singapore—Purchase Trend
Source: Frost & Sullivan analysis.
57. 57P6F8-27
2010 2011 2012 2013 2014 2015 2016 2017
Revenue 37.3 43.0 49.8 57.7 66.8 77.7 91.8 109.2
Growth Rate - 15.3 15.8 15.9 15.8 16.3 18.1 19.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
0.0
20.0
40.0
60.0
80.0
100.0
120.0
GrowthRate(%)
Revenue($Million)
Key Takeaway: The Internet and media, industrial and manufacturing, and telecommunication sectors
have been identified as the key end-user segments of Singapore’s modular data center market.
Malaysia Modular Data Center Market—Revenue
Forecast
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Year
Modular Data Center Market: Revenue Forecast, Malaysia, 2010–2017
CAGR = 17.0%
58. 58P6F8-27
Malaysia—Revenue Forecast Discussion
• The Malaysian modular data center market was valued at $49.8 million in 2012 and is slated to reach
$109.2 million by 2017 at a CAGR of 17.0 percent during 2012 to 2017.
• It has developed steadily over the past few years. Its strategic location in the middle of Southeast
Asia, the fact that it is a cheaper alternative to Singapore, in terms of CAPEX, and a strong
Government initiative to position it as a world-class data center hub through a list of entry point
projects in the Economic Transformation Program (ETP) have all played a significant role in
Malaysia’s development.
• The ETP supports broadband bandwidth expansion to spur data center infrastructure. There is an
increasing foreign demand from MNCs looking to consolidate their regional operations in Malaysia as
well as from content providers setting up regional notes in Malaysia. Moreover, a growing number of
cloud service providers are looking to set up their use base in the country. International service
providers are looking to expand their partnerships with local participants. There is also a growing
domestic demand for IT outsourcing (ITO), business process outsourcing (BPO), and creative
content in Malaysia.
• Global economic instability may affect investments and the demand for data centers. Niche
technologies such as green IT, cloud computing, utility computing, and Software as a Service (SaaS)
have not gained popularity in the Malaysian data center market.
Source: Frost & Sullivan analysis.
59. 59P6F8-27
2012 2017
Disaster Recovery 10.0 16.4
High Performance Computing 15.0 36.0
Data Center Augmentation 24.8 56.8
0.0
20.0
40.0
60.0
80.0
100.0
120.0
Revenue($Million) CAGR
(2012‒2017)
19.1%
18.0%
10.4%
Malaysia Modular Data Center Market—Revenue
Forecast by Application
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Modular Data Center Market: Revenue Forecast by Application, Malaysia, 2012 and 2017
Year
60. 60P6F8-27
Scalable Modular Data Centers
• The Government’s initiatives in positioning Malaysia as a world-class data center hub is expected to
create a high demand for data center infrastructure, which will directly boost the scalable modular data
center market.
• IBM will develop a new global delivery center in Cyberjaya over the next five years involving RM 1
billion worth of investments. Telekom Malaysia and Akamai Technologies are collaborating to build a
Netstorage facilities with an initial investment of RM 390,000.
• These investments are expected to directly drive both data center augmentation and high performance
computing applications in Malaysia.
Containerized Modular Data Centers
• The containerized form of modular data centers is expected to outgrow the scalable form in 2017,
driven by its increasing application in the Internet and media, industrial and manufacturing, and
telecommunication sectors.
• Containerized modular data centers will appeal to various industries ranging from oil and gas to media
sectors. Due to customizability, portability, security and durability, containerized modular data centers
present an enormous opportunity in Malaysia for various industries that play a significant role in
Malaysia’s growth.
Revenue Forecast by Application Discussion
Source: Frost & Sullivan analysis.
62. 62P6F8-27
Scalable Modular Data Centers
• The Internet and media vertical showed the highest demand for scalable modular data centers due to the
growing demand for rich media content along with the introduction of high-speed broadband in 2012.
• The industrial and manufacturing vertical demonstrated the second highest demand at a 20 percent market
share in 2012 due to lack of data center space, particularly in high technology manufacturing plants like
electronics and automobile industries.
• The telecommunication vertical accounts for a significant 18 percent share along with the high mobile
penetration and the introduction of new 4G wireless technology in the country.
• Some of major scalable modular data center projects in Malaysia are as follows:
o NTT Com has launched a new data center using scalable modular architecture in Cyberjaya by June
2012.
o MAMPU established its Cyberjaya data center with scalable equipment in 2010.
Containerized Modular Data Centers
• Containerized modular data centers are perceived to be an ideal tool for providing computing power to
companies in the industrial and manufacturing sectors that have run out of space at their premises or that
need to deploy computing power in the field. They are also ideal as a disaster recovery solution that can
replicate a company's computing environment in case of an emergency. Industrial and Manufacturing is
identified as the key end-user segment for containerized modular data centers.
• Some of major containerized modular data center projects in Malaysia are as follows:
o IBM successfully deployed its PMDC in an electronics manufacturing company in Malaysia.
Demand Analysis by End User Discussion
Source: Frost & Sullivan analysis.
63. 63P6F8-27
Vendor
Selection
Criteria
Procurement
Process
Typical
Suppliers
• Open tender or closed tendering depending on the project size and requirements.
• May be conducted by external contractor if there is a need to follow a stringent
timeline.
• Typically take five-six months from initiation to delivery time, depending on the
companies.
Costs
Dell Cisco
After-Sales
Services
Initial Capital
Investment
Commitment Level in
Procurement to
Delivery
Key Required
Specifications
Service
Availability
Availability of
Back-up Power
Smoke Detection and
Fire Suppression
Systems
Emergency
Power Off
Malaysia—Purchase Trend
Source: Frost & Sullivan analysis.
65. 65P6F8-27
2010 2011 2012 2013 2014 2015 2016 2017
Revenue 13.2 15.0 17.9 21.4 25.5 30.6 36.3 45.1
Growth Rate - 13.6 19.3 19.6 19.2 20.0 18.6 24.2
0.0
5.0
10.0
15.0
20.0
25.0
30.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
GrowthRate(%)
Revenue($Million)
Key Takeaway: The positive economic outlook with the country’s strong relationship with Japanese
conglomerates, particularly in manufacturing, is the major growth driver for the region.
Thailand Modular Data Center Market—Revenue Forecast
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Year
Modular Data Center Market: Revenue Forecast, Thailand, 2010–2017
CAGR = 20.3%
66. 66P6F8-27
• Thailand’s modular data center market was valued at $17.9 million in 2012 and is likely to reach $45.1
million by 2017 at a CAGR of 20.3 percent during 2012 to 2017.
• Major investments by Japanese conglomerates, Thailand’s close proximity to the Japanese
conglomerates, and its status as an automobile and electronics hub are likely to help it emerge as a
data center hosting hub in Thailand. The liberalization of the services sector and establishment of
investment rules are expected to encourage more Japanese corporations to invest in Thailand.
• The Government Master Plan promotes e-government and IT infrastructure spending. Moreover, the
Board of Investment (BOI) of Thailand added data center to its list of activities eligible for investment
incentives as a measure to position Thailand as an ICT regional hub.
• With the neighboring countries’ data center markets reaching the mature stage, and the evolution of the
local companies’ business process and information management outsourcing services, Thailand is likely
to witness a boost in the demand for data centers.
• The disaster recovery application is expected to experience the highest growth due to the sudden
business discontinuity witnessed recently due to natural disasters and political instability.
• The BFSI, industrial and manufacturing, and Government have been identified as the key end-user
segments of the modular data center market.
Thailand—Revenue Forecast Discussion
Source: Frost & Sullivan analysis.
67. 67P6F8-27
The demand for modular data centers is expected to surge, particularly in disaster recovery
applications after the flood crisis.
• Compared to traditional data centers, using a
modular data center enables a company to defer
its capital expenditure. The investment funds can
be diverted to other recovery operations in times
of crisis.
• Two data center service providers, True IDC and
TCC Technology, have experienced doubled
growth in demand during the flood crisis and plan
to make huge investments to expand their
service capacity to serve the demand surge.
• TCC Technology is looking to build a data center
park through foreign partnership. The data center
facility is expected to accumulate data centers in
a higher zone to deal with future floods.
• The ICT ministry, along with state and private
telecom operators, doubled the capacity of data
centers at the Government’s call centers and
data back-up centers.
Severe Flooding in Thailand
Note: The images have been taken from asiaqualityfocus.com. Source: Frost & Sullivan analysis.
Impact of Floods on Thailand’s Modular Data Center
Market
68. 68P6F8-27
The uptake of cloud services witnessed a significant increase after the recent flood in Thailand because
of various advantages:
Cloud Computing
During Natural
Calamities
On Demand
• Always available at any location.
• Businesses affected by the flood can still
run the operation smoothly.
Shared Pool
• Offers a seamless integration of
computing, storage, and other
infrastructure resources to create a virtual
resource pool.
• During the floods, a company may
relocate its plant in a provincial area,
while some people may work from home
and others who have rescued from the
floods could work from any remote
location.
Ubiquitous Access
• Access is available through public or
private network through any network-
enabled device.
• Access from any device, any network
would make no difference in sharing
information.
• Any flood victim who has been rescued
and moved to a remote area with limited
internet access also has the option of
using cloud on mobile.
Rapid Elasticity
• Enable businesses to achieve scalability.
• During the peak period, there is no need to
increase capacity of the data center facility.
• While the flood may cause damage in some
computing facilities, businesses still maintain
a regular flow of information without any traffic
congestion and downtime.
Flood Impact on Cloud Computing
Source: Frost & Sullivan analysis.
69. 69P6F8-27
2012 2017
Disaster Recovery 5.4 18.0
High Performance Computing 2.7 4.5
Data Center Augmentation 9.8 22.6
0.0
10.0
20.0
30.0
40.0
50.0
Revenue($Million)
CAGR
(2012‒2017)
11.2%
18.2%
27.2%
Thailand Modular Data Center Market—Revenue Forecast
by Application
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Modular Data Center Market: Revenue Forecast by Application, Thailand, 2012 and 2017
Year
70. 70P6F8-27
Scalable Modular Data Centers
• The recent severe flooding in Bangkok is predicted to boost the demand for containerized data centers
in disaster recovery and thereby pushing the market towards the highest growth in all applications.
• Industrial users have expressed their interest in modular data centers while undertaking data
augmentation due to limited space at their production facilities.
Containerized Modular Data Centers
• Companies in the banking and industrial sectors are likely to use containerized modular data centers
as a disaster facility.
• The containerized solution is expected to be used in remote areas for purposes such as weather
system monitoring and temporary sites such as construction zones as well as oil and gas drilling
areas.
Revenue Forecast by Application Discussion
Source: Frost & Sullivan analysis.
72. 72P6F8-27
• The BFSI vertical was the largest end user of scalable modular data centers in 2012, as the majority of
the hosting for application servers and internet servers of online trading firms require data center
augmentation. The upgrades and modernization of the banking platform contributed to the high
demand for modular data centers due to their rapid deployment.
• Rapid expansion of high-tech manufacturing, such as in electronics and manufacturing industries,
(particularly from Japanese conglomerates) create a high demand for modular data center
infrastructure.
• The Government initiatives in promoting e-government services required the construction of new data
centers in the country.
Demand Analysis by End User Discussion
Source: Frost & Sullivan analysis.
73. 73P6F8-27
Vendor
Selection
Criteria
Procurement
Process
Typical
Suppliers
• Closed tendering process
• Annual contracts preferred for better relationship with the vendors
• The chief information officer is the key decision maker in the whole procurement
process
Initial Capital
Investment
IBM Dell
Operating Cost
Energy
Efficiency
Time to
Deployment
Key Required
Specifications
Availability of
Back-up Power
Smoke Detection and Fire
Suppression Systems
Service
Availability
Thailand—Purchase Trend
Source: Frost & Sullivan analysis.
75. 75P6F8-27
2010 2011 2012 2013 2014 2015 2016 2017
Revenue 9.0 10.3 11.7 13.5 15.6 17.9 20.1 22.6
Growth Rate - 14.4 13.6 15.4 15.6 14.7 12.3 16.5
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
0.0
5.0
10.0
15.0
20.0
25.0
GrowthRate(%)
Revenue($Million)
Key Takeaway: The offshore market has been growing significantly, with numerous contact centers
and service providers requiring intensive data support and management, thereby creating a huge
demand for data center augmentation.
The Philippines Modular Data Center Market—Revenue
Forecast
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Year
Modular Data Center Market: Revenue Forecast, The Philippines, 2010–2017
CAGR = 14.1%
76. 76P6F8-27
• The Philippines’ modular data center market was valued at $11.7 million in 2012 and is forecast to
reach $22.6 million by 2017 at a CAGR of 14.1 percent during 2012 to 2017.
• The Government’s efforts and contribution toward the nation’s ICT infrastructure build-ups such as the
development of the Philippine Cyber Corridor and e-government initiatives will drive the market
demand.
• Availability of an English-speaking workforce in the Philippines provides it a comparative advantage
over other neighboring markets such as Taiwan and Vietnam, which may lose out in attracting interest
from regional deals.
• The Philippines has a highly competitive IT manpower with skills in application development,
desktop/software, and Web development.
• The Philippines has been particularly strong in software development and IT skills, and e-service
providers are expected to lead the next generation of BPO businesses and hence, generate greater
demand for data center services.
• Data center augmentation is the largest target application for scalable modular data centers and this
trend is expected to continue during 2010 to 2017.
• Internet and Media, and Industrial and Manufacturing have been identified as the key end-user
segments of scalable modular data centers in the Philippines.
The Philippines—Revenue Forecast Discussion
Source: Frost & Sullivan analysis.
77. 77P6F8-27
2012 2017
Disaster Recovery 4.1 8.3
High Performance Computing 1.7 2.3
Data Center Augmentation 5.9 12.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0Revenue($Million)
CAGR
(2012‒2017)
6.2%
15.2%
15.1%
The Philippines Modular Data Center Market—Revenue
Forecast by Application
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Year
Modular Data Center Market: Revenue Forecast by Application, The Philippines, 2012 and 2017
78. 78P6F8-27
Scalable Modular Data Centers
• As high-density data demand from the telecommunication and internet and media verticals are
projected to drastically increase during the forecast period, the demand for high computing
applications is also expected to grow fast.
• Scalable modular data centers are expected to be considered an optimal option for traditional data
center operators for meeting the demand for data center augmentation from the growing BPO industry
in the Philippines because of their cost effectiveness in terms of the TCO (Total Cost of Ownership).
Containerized Modular Data Centers
• The demand for disaster recovery application is expected to be driven by in-house data center
operators and data center service providers who are increasingly seeking out preventive measures of
data center business continuity in the events of natural disasters such as earthquakes and destructive
weather patterns, and the Philippines’ well-known geo-political stability.
Revenue Forecast by Application Discussion
Source: Frost & Sullivan analysis.
79. 79P6F8-27
Demand Analysis by End User
Government
3.0% BFSI
2.0%
Telecommunication
10.0%
Internet and Media
1.0%
Industrial and
Manufacturing
50.0%
Education
30.0%
Others*
4.0%
*Others include logistics, retail, healthcare, transportation, and hospitality.
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Percent Sales Breakdown by End User
Modular Data Center Market: The Philippines, 2012
80. 80P6F8-27
• The growing BPO industry increases the demand for OPEX-and CAPEX-efficient scalable modular
data centers. The telecommunication vertical in the Philippines includes the contact center business,
e-service providers, such as companies that engage in animation, computer-aided design, and
medical transcription.
• In the Internet/media vertical, online gaming portals play an essential leading role and the demand for
data centers is likely to increase as online gaming has become a part of life, especially among the
youth in the Philippines.
• The demand from the Government vertical is explained by the Philippines Government’s plans to
build a dedicated data center for Government agencies. The data center would be located on a 1.4
hectare plot of land behind the National Internal Revenue Building in Quezon City.
Demand Analysis by End User Discussion
Source: Frost & Sullivan analysis.
81. 81P6F8-27
Vendor
Selection
Criteria
Procurement
Process
Typical
Suppliers
• Open tendering preferred for large-scale new data center projects to ensure better
prices and services but close tendering preferred for data center retrofits and
extensions.
• Data center procurement process mostly managed by in-house team.
o EPC contractors are sometimes involved in the procurement process for
data center projects with a high complexity.
• Typical tendering takes about two months depending on the purchase volume and
technical complexity of projects.
• Project-based purchase contract.
Operating Cost
IBM HP Cisco
Energy
Efficiency
Vendor’s Local
Presence
Reliability
Key Required
Specifications
Service
Availability
Site Security
Availability of
Back-up Power
Equipment
Emergency
Power-Off
Functionality
Fujitsu
The Philippines—Purchase Trend
Source: Frost & Sullivan analysis.
83. 83P6F8-27
2010 2011 2012 2013 2014 2015 2016 2017
Revenue 5.4 6.8 8.4 10.3 12.1 14.5 17.7 22.0
Growth Rate - 25.9 23.5 22.6 17.5 19.8 22.1 24.3
0.0
5.0
10.0
15.0
20.0
25.0
30.0
0.0
5.0
10.0
15.0
20.0
25.0
GrowthRate(%)
Revenue($Million)
Key Takeaway: Data center augmentation is the largest target application for scalable modular data
centers and this trend is expected to continue during 2012 to 2017.
Vietnam Modular Data Center Market—Revenue Forecast
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Year
Modular Data Center Market: Revenue Forecast, Vietnam, 2010–2017
CAGR = 21.2%
84. 84P6F8-27
• Vietnam is expected to be the fastest growing modular data center market in Southeast Asia at a
CAGR of 21.2 percent between 2012 and 2017, followed by Thailand, Malaysia, and Indonesia. Its
modular data center market was valued at $8.4 million in 2012 and is estimated to reach $22.0 million
in 2017 at a CAGR of 21.2 percent.
• With the Government opening up the ICT infrastructure industries to foreign investments and
ownership, increasing foreign direct investment is expected to intensify data center expansion in the
country.
• Political stability has made Vietnam a good destination for potential multinational corporations that are
looking to set up the data center host in Southeast Asia.
• The country’s strong GDP growth boosts both local and foreign investors’ confidence level.
• Vietnam’s low operating costs resulting from low-priced rental and low-cost labor as compared to its
neighboring countries (such as Malaysia, Singapore and Hong Kong), along with rapid urbanization,
helps to attract investors and create opportunities for new construction of data center infrastructure.
• The number of internet users is expanding rapidly, creating a significant demand for data center
infrastructure.
Vietnam—Revenue Forecast Discussion
Source: Frost & Sullivan analysis.
85. 85P6F8-27
2012 2017
Disaster Recovery 2.1 5.5
High Performance Computing 1.3 4.4
Data Center Augmentation 5.0 12.1
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Revenue($Million)
CAGR
(2012‒2017)
27.6%
19.3%
21.2%
Vietnam Modular Data Center Market—Revenue Forecast
by Application
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Modular Data Center Market: Revenue Forecast by Application, Vietnam, 2012 and 2017
Year
86. 86P6F8-27
Scalable Modular Data Centers
• The rapid expansion of broadband users in Vietnam raised the demand for high-quality internet and
media. High performance computing application in modular data centers is expected to grow in line with
the fast growing internet users.
• The uptake of the disaster recovery application is predicted to increase with further business expansion
of the industrial and manufacturing, and telecommunication sectors. The demand for local back-up
facilities and the emphasis on business continuity have intensified the need for the emergency response
of a data center.
• The need for modernizing and upgrading the existing data platform, particularly in the
telecommunication and BFSI sectors, is expected to boost the application of scalable modular data
centers in data center augmentation.
Containerized Modular Data Centers
• As Vietnamese businesses across all industries seek to update their current IT systems without
spending valuable resources on building traditional data centers, containerized modular data centers
have been used as a cost-effective and competitive solution for disaster recovery and portability since
the introduction of the EMS (Elliptical Mobile Solutions) mobile data center by Dot VN in 2010.
• Cost-conscious businesses and organizations in Vietnam are likely to choose containerized modular
data centers, as they can smartly ramp up their IT efforts without over-investing or needing to allocate
funds toward real estate development and maintenance, a major investment that is required with
traditional data centers.
Revenue Forecast by Application Discussion
Source: Frost & Sullivan analysis.
88. 88P6F8-27
Scalable Modular Data Centers
• The industrial and manufacturing vertical accounted for the largest demand at 20 percent due to lack of data
center space, particularly in high technology manufacturing plants in electronics and automobile industries.
• The Internet and Media vertical showed the second highest demand for scalable modular data centers due
to the growing demand for rich media content along with the introduction of high-speed broadband in 2012.
• The telecommunication sector consists of a large portion of 15 percent along with the high mobile
penetration and the introduction of new 4G wireless technology in the country.
• Some of major scalable modular data center projects in Malaysia are as follows:
o NTT Com has launched a new data center using scalable modular architecture in Cyberjaya in June
2012.
o MAMPU established its Cyberjaya data center with scalable equipment.
• With Vietnam being one of the attractive manufacturing locations for multinational companies, the industrial
and manufacturing vertical has adopted computer-integrated manufacturing that needs support and
centralization offered by data centers.
• The Internet and media is one of the strong verticals due to the large amount of data and traffic involved in
online gaming. Vietnam is known for its young population, which participates in online games quite often
from almost any location in the country. The introduction of high-speed broadband in recent years has
turbocharged the demand for high-quality internet media content.
• The telecommunication and BFSI verticals have been upgrading their technologies and modernizing the
internal data platform to modular data centers, creating cost-effective solutions to support the companies’
growth plans.
Demand Analysis by End User Discussion
Source: Frost & Sullivan analysis.
89. 89P6F8-27
Containerized Modular Data Centers
• Containerized data centers are perceived to be an ideal tool for providing computing power to
companies in the industrial and manufacturing vertical that have run out of space at their premises or
that need to deploy computing power in the field, or as a disaster recovery solution that can replicate a
company's computing environment in case of an emergency.
o IBM successfully deployed its PMDC in an electronics manufacturing company in Malaysia.
Demand Analysis by End User Discussion (continued)
Source: Frost & Sullivan analysis.
90. 90P6F8-27
Vendor
Selection
Criteria
Procurement
Process
Typical
Suppliers
• Conducted by in-house team with closed tendering.
• EPC contractors engaged in the procurement process.
• Good partnership formed with major vendors to facilitate data center
infrastructure sourcing.
Time to
Deployment
IBM HP Dell
Reliability
Technical Features
Conformance
Key Required
Specifications
Site Security
Service
Availability
Control System
Compatibility
Availability of
Back-up Power
Cisco Jupiter
Vietnam—Purchase Trend
Source: Frost & Sullivan analysis.
92. 92P6F8-27
2010 2011 2012 2013 2014 2015 2016 2017
Revenue 2.8 3.1 3.4 3.9 4.4 5.1 6.0 6.8
Growth Rate - 10.7 9.7 14.7 12.8 15.9 17.6 13.3
5.0
7.0
9.0
11.0
13.0
15.0
17.0
19.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
GrowthRate(%)
Revenue($Million)
Key Takeaway: The Indonesian modular data center market would be driven by the expansion of
the industrial and manufacturing sector and the increasing demand for data centers from the
telecommunication sector.
Indonesia Modular Data Center Market—Revenue
Forecast
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Year
Modular Data Center Market: Revenue Forecast, Indonesia, 2010–2017
CAGR = 14.9%
93. 93P6F8-27
• The Indonesian modular data center market was valued at $3.4 million in 2012 and is likely to grow to
$6.8 million at a CAGR of 14.9 percent during 2012 to 2017.
• Indonesia is charecterised by large geographic space and a huge population of approximately 240
million citizens. Its data center market is mostly untapped.
• The Government has started undertaking initiatives in developing the IT business and
telecommunication industry, which includes the data center business.
• Expansion in oil & gas and mining operations in remote areas is expected to increase the need of
mobile/transportable data centers.
• The initial infrastructure investment cost of developing data center operations is relatively high due to
the currently weak basic infrastructures required to host data centers, which will pave the way for
modular data centers.
• Increasing investments are being witnessed from MNCs that want to strengthen their position in
Indonesia.
• Data center service providers are undertaking increasing investments to fulfill the growing demand for
data centers.
• The growing demand for cloud computing services and data centers in Indonesia, the growth of the
country’s data center recovery service market, and a high demand service that is low in supply are
other major drivers for the growth.
Indonesia—Revenue Forecast Discussion
Source: Frost & Sullivan analysis.
94. 94P6F8-27
2012 2017
Disaster Recovery 1.2 2.4
High Performance Computing 0.5 1.2
Data Center Augmentation 1.7 3.2
0.0
2.0
4.0
6.0
8.0
10.0Revenue($Million)
CAGR
(2012‒2017)
19.1%
13.4%
14.8%
Indonesia Modular Data Center Market—Revenue
Forecast by Application
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Year
Modular Data Center Market: Revenue Forecast by Application, Indonesia, 2012 and 2017
95. 95P6F8-27
Scalable Modular Data Centers
• Increasing awareness on the importance of disaster recovery in mission critical application sectors
such as the BFSI and the Internet/media are expected to aid the uptake of disaster recovery
solutions.
Applications in data center augmentation, especially in the telecommunication vertical, are expected
to increase significantly due to the high data density demand and rapid penetration of mobile and
internet users.
Containerized Modular Data Centers
• Mobile/ transportable solution is gaining support from the oil and gas and logistics sector, where
frequent relocation of data center is required.
• Disaster recovery and mobile/transportable are expected to be the main applications for
Containerized modular data centers by 2017, driven by the increasing application in energy and
logistics sector.
Revenue Forecast by Application Discussion
Source: Frost & Sullivan analysis.
97. 97P6F8-27
• The telecommunication vertical accounted for the highest share of Indonesia’s modular data center
market in 2012. This is due to the steady growth of telecommunication infrastructure along with
increasing internet and mobile penetration.
• The energy sector was the second highest demand generator for the Indonesian scalable modular
data center market in 2012, especially in the wake of the expansion of oil and gas and mining
industries.
• Most of the data center applications in the oil and gas and mining vertical require frequent relocation,
and hence the companies from these sectors are showing a strong inclination towards the mobility of
containerized data centers.
• The industrial and manufacturing vertical accounted for a 13.8 percent share of the Indonesian
modular data center market in 2012. The increasing number of enterprise resource planning (ERP)
platforms and the centralization of application servers in manufacturing plants led to the demand from
this vertical.
Demand Analysis by End User Discussion
Source: Frost & Sullivan analysis.
98. 98P6F8-27
Vendor
Selection
Criteria
Procurement
Process
Typical
Suppliers
• Open or closed tender depending on budget and timeline constraints.
• Open tender is preferred to have better price competitiveness.
• Typical lead time ranges from three to six months.
Scalability
IBM HP
Time to
Deployment
Cost Reliability
Key Required
Specifications
Service
Availability
Energy
Efficiency
Availability of
Back-up Power
Equipment
Emergency
Power-off
Functionality
Indonesia—Purchase Trend
Source: Frost & Sullivan analysis.
100. 100P6F8-27
Market
Partici
-pants
Traditional IT
Companies
Global Power
Management
Companies
Independent
Data Center
Companies
System
Integrators
Characteristics
Market Influence
(Southeast Asia)
• IBM
• HP
• Dell
• Cisco
• Sun
Companies
• APC
• Emerson Network Power
• Rittal
• SGI
• i/o
• Bull
• BladeRoom
• Logicalis
• Dimension Data
• Major IT companies with high
brand value, huge IT customer
base, and extensive sales and
distribution network.
• Technical expertise and
manufacturing capabilities of
core containerized/scalable
modular data center
components such as UPS
systems and generators.
• Specializing in
containerized/scalable
modular data centers having
high density and efficiency.
• Collaborating with other types
of containerized/scalable
modular data center
companies such as
distribution/installation/
integration partners.
Impact: Very High High Medium Low Nil
Overview—Key Market Participants
Source: Frost & Sullivan analysis.
101. 101P6F8-27
Key Success Factors Description Exemplary Companies
R&D Capabilities
End-to-End Data Center
Solution Offering
Extensive Sales and
Distribution Network
Stable Supply Chain
Management
Value-Added Service
Offering
• Cost-effective and rapid product development
capabilities based on sufficient R&D infrastructure,
which enables a company to become a technology
leader in the containerized/scalable modular data
center market.
• Complete containerized/scalable modular data
center packages ranging from data center
assessment, deign, construction, and services.
• Systematic and efficient sales and distribution
channels (in the key markets), which consist of
strong direct sales teams, major local distribution
partners, system integrators, and value-added re-
sellers.
• Large and reliable supply chain network of core
components that enhance the overall
competitiveness of a company in terms of price,
quality, and delivery.
• A wide range of customized services that help
customers resolve critical issues involving
containerized/scalable modular data center
construction/operation, such as risk analysis,
efficiency assessment, process analysis, and so on.
• IBM
• HP
• I/O
• IBM
• HP
• Dell
• SGI
• Rittal
• IBM
• HP
• Rittal
• APC
• Emerson Network Power
• IBM
• IBM
• Rittal
• Dell
Overview—Key Success Factors
Source: Frost & Sullivan analysis.
102. 102P6F8-27
Adopted Strategy
• Providing end users with a holistic approach to data center infrastructure energy management, which
develops comprehensive green IT business strategies, provides services, systems, and software to
help create a green infrastructure.
• Forming strategic partnerships with major original equipment manufacturers (OEMs) to establish a
more stable and larger supply chain of components that make up a standardized, easy to maintain
data center.
• Cooperating with local business partners to develop a strong distribution channel rather then working
with local distributors.
Business Focus in Southeast Asia
• Focusing on data center augmentation, High Performance Computing, and mobile/transportable
applications.
• Key end-user segments include mining and logistics, where containers can be deployed at remote
sites; the banking and finance vertical, which needs a flexible disaster recovery center; and the
Internet and media vertical, which includes internet companies and film production companies
carrying out computing-intensive tasks.
• Targeting Singapore and Hong Kong, where the addressable market for containerized/scalable
modular data centers is substantially large.
Competitor Profiling—IBM
Source: Frost & Sullivan analysis.
103. 103P6F8-27
Key Success Factors/Company’s Strengths
• Providing a customized data center solution to end users by leveraging its well-established
relationships with industry-leading vendors, including strategic relationships with major power and
cooling equipment vendors.
• Manufacturing a full suite of storage and server products, which help IBM gain a strong understanding
of the infrastructure support needs of its customers’ IT equipment.
• Extensive knowledge and expertise on data center design, construction, relocation, and optimization.
Opportunities for the Company
• Growing demand for a data center turkey solution, ranging from data center strategy and
assessments to data center design, build, consolidation, and relocation.
• Increase in the need for cost-effective data center operations.
• Rapid growth of a cloud computing market in Southeast Asia.
Competitor Profiling—IBM (continued)
Source: Frost & Sullivan analysis.
104. 104P6F8-27
Adopted Strategy
• Providing a comprehensive, integrated range of modular data center products, solutions, and services
by leveraging the product/service offerings of its subsidiaries.
• Offering value-added data center consulting services such as assessment of data center efficiency
and risk in order to differentiate itself from other competitors.
Business Focus in Southeast Asia
• Focusing on data center augmentation (high potential) disaster recovery (high potential), and high
performance computing (medium potential).
o Mobile/Transportable Solution: A niche market segment.
• Targeting Singapore, Hong Kong, and Malaysia as its main markets.
• High potential verticals: The Government, energy, telecommunication, and internet and media (high
potential).
• Medium potential verticals: BFSI, Universities, Hospital.
• Low potential verticals: Industrial and Manufacturing.
Competitor Profiling (Infrastructure)—Rittal
Source: Frost & Sullivan analysis.
105. 105P6F8-27
Key Success Factors/Company’s Strengths
• High level of vertical integration in the supply chain of modular data center infrastructure based on the
in-house manufacturing capability of core components of modular data center infrastructure such as
power distribution (UPS, generators) and cooling systems.
• Extensive direct and indirect sales and distribution network as a result of a successful chain of
development programs.
• Global service network.
Opportunities for the Company
• Capturing the growing demands of the modular concept by positioning itself as a total data center
solutions provider rather than a modular data center vendor, which will differentiate it from other
competitors.
• Targeting untapped modular data center markets in Southeast Asia and Latin America such as
Vietnam, Thailand, Brazil, and so on.
• Taking advantage of the growing demand for new data center infrastructure projects.
Competitor Profiling (Infrastructure)—Rittal (continued)
Source: Frost & Sullivan analysis.
106. 106P6F8-27
Adopted Strategy
• Undertaking inorganic growth to enhance its IT capabilities.
o Acquisition of Lee Technologies: Lee Technologies brings to Schneider Electric capabilities
ranging from consulting, site assessment, design, equipment specification and selection to
integration, commissioning, facility operations staffing, maintenance, and proactive 24x7 remote
monitoring.
• Forming strategic partnerships with IT solution leaders (Dell, IBM, and Hewlett Packard) by providing
OEM products to complete their full data center integrated solution.
Business Focus in Southeast Asia
• Currently, focusing more on stationary modular data centers.
• The key target end-user segments include:
o Oil and Gas: Huge increase in data handling and communication needs of conventional
infrastructure sectors.
o Internet and Media: Increasing demand for cloud computing.
o Other Focused Segments: Healthcare, industrial, and financial sectors.
• Singapore, Hong Kong, and Malaysia are the three main markets to focus.
Competitor Profiling (Infrastructure)—Schneider Electric
Source: Frost & Sullivan analysis.
107. 107P6F8-27
Key Success Factors/Company’s Strengths
• Market Awareness–Educating end users on the benefits of modular data centers through white papers
and setting up a data center university.
• Core competency in the power module–Offering a full range of power module products such as
generators, surge protectors, power distribution units, racks, cooling and a complete power range of
UPS systems accessories.
• Successfully capturing a share in key emerging markets including the healthcare, industrial, and
financial verticals.
Opportunities for the Company
• Growing demand for energy–efficient data centers.
o There is an increasing demand for improving energy efficiency, as currently 55 percent of the
energy is used in data center power and cooling (as published by IBM).
Competitor Profiling (Infrastructure)—Schneider Electric
(continued)
Source: Frost & Sullivan analysis.
108. 108P6F8-27
Adopted Strategy
• Delivering innovative solutions through its12 centers of expertise.
• Setting up the Southeast Asian Learning Center training program for enhancing its channel partners’
capability through the Uptime Partner program.
• Strengthening its products and services portfolio through acquisitions.
• Forming strategic partnerships with major IT software giants to complement its hardware solutions.
Business Focus in Southeast Asia
• Emerson Network Power has a strong market presence in Southeast Asia, particularly the Philippines,
Malaysia, and Hong Kong.
• The company has set up its Asia-Pacific headquarter in the Philippines.
• Emerson Network Power provides power and cooling solutions to a 120,000 sq. ft. data center in
Malaysia built by Teliti International.
• It has appointed ACW Distribution for providing extensive market reach in Hong Kong for data center
augmentation.
Competitor Profiling (Infrastructure)—Emerson Network
Power
Source: Frost & Sullivan analysis.
109. 109P6F8-27
Key Success Factors/Company’s Strengths
• Strong and specialized in data center power and cooling solutions.
• Acquisition of Chloride Group PLC drives the global growth strategy for UPS and integrated data
center solutions.
• Providing innovative solutions and expertise in areas including AC and DC power and precision
cooling systems, embedded computing and power, integrated racks and enclosures, power switching
and controls, monitoring and connectivity.
Opportunities for the Company
• Delivering efficiency without compromise through a cost-effective power, precision cooling, and
management infrastructure to its clients is part of the company’s Smart solutions portfolio.
• Increasing awareness in energy efficiency is expected to complement Emerson’s Smart solutions
portfolio.
Competitor Profiling (Infrastructure)—Emerson Network
Power (continued)
Source: Frost & Sullivan analysis.
110. 110P6F8-27
Singapore
• SingTel
o SingTel is a major telco in Singapore and has been managing data centers since 1990.
o The company was the first to offer facility management services in the country.
o Apart from providing pure co-location services, SingTel also has a comprehensive range of
managed services that include managed security services, managed applications, and Wide
Area Network optimization.
• Equinix
o Equinix is one of the world's largest carrier-neutral data center service providers.
o Singapore also has the company's Asia-Pacific Network Operation Center (NOC), which
provides regional support to the entire Asia-Pacific region.
• Global Switch
o Global Switch is a carrier-neutral data center focused on co-location services only.
o The company specializes in providing a customised environment based on a customer's specific
requirement.
• Keppel Digihub
o Keppel is focused on providing co-location services and is a carrier-neutral data center.
• 1-Net
o 1-Net is one of the four founding members of the Asian Data Center Alliance. A significant part of
the Government's infrastructure is hosted at the company's data center.
Customer Profiling—Modular Data Center Services
Source: Frost & Sullivan analysis.
111. 111P6F8-27
Indonesia
• Indosat M2
o IndosatM 2 is an Indonesia-based telecommunications provider, offering a strong
background in digital communication.
o Hosting solutions are provided with connectivity services and have two floors of their
facility for co-location services.
Malaysia
• TM Net
o TM Net is one of the market leaders in the country due to its last mile monopoly and a
widespread network of 17 data centers across Malaysia under the two key brands of
Netmyne and Myloca.
o The majority of TM Net's co-location comes from the Government sector and the MNCs.
• Kompakar CRC
o Kompakar CRC, a wholly owned subsidiary of Kompakar, provides data center services as
a part of its 'End-to-End Managed Services and Business Continuity Solutions‘, which
include network solutions, desktop workstations, and business work areas.
Customer Profiling—Modular Data Center Services
(continued)
Source: Frost & Sullivan analysis.
112. 112P6F8-27
The Philippines
• Globe Business
o Globe Business is the largest data center services provider in the Philippines. It derives
strength primarily from its telecom provider origin, which provides it with access to reliable
connectivity.
o The company's data centers are certified at ISO 27001"2005 and ISO 9001:2008 standards.
• Vitro
o Vitro is a carrier-neutral data center. It was the first Class 'A' data center in the Philippines.
o Being a subsidiary of PLDT, the company's data center has access to reliable connectivity.
Thailand
• True Corp
o True Corp is the largest co-location participant in Thailand’s modular data center services
market. It has two data centers located at Bangkok and Greater Bangkok.
o With more than 200 racks, its largest clients come from the gaming and financial trading
industries.
Vietnam
• FPT Telecom
o It’s a part of the largest ICT corporation in Vietnam.
o It offers all types of managed services, with a particular focus on managed hosting. The
company has established trust as a secure data center service provider in financial trading
industries.
Customer Profiling—Modular Data Center Services
(continued)
Source: Frost & Sullivan analysis.
114. 114P6F8-27
Based on discussions with end users and competitors, different stages of readiness for containerized
modular data center adoption have been observed across target countries.
Curious
Information
Gathering
Serious
Description • Customers showed interest
but did not fully understand
the solution, how to apply it,
or how it would fit into their
data center infrastructure.
• Same clients return with
more educated inquiries
to determine the right fit
for the right use.
• More insightful proposals
requested based on
intended use and data
center requirements.
Country SingaporeMalaysia
Indonesia
The Philippines
Vietnam Thailand
Customers’ Perspectives on Containerized Modular Data
Centers
Source: Frost & Sullivan analysis.
115. 115P6F8-27
Time to deployment, reliability, initial capital investment, and energy efficiency are the key purchasing
criteria considered by end users during the vendor selection process.
Source: End-user Survey; Frost & Sullivan analysis.
How important are the following key purchasing criteria?
No. of respondents = 21 Purchase Criteria
Rating
Low High
0 105
Customers’ Purchasing Criteria Analysis
8.7
8.2
8.6 8.4 8.6
7.5 7.5
7.9
8.7
8.0 8.1
0.0
2.0
4.0
6.0
8.0
10.0
Time to
Deployment
Scalability Initial Capital
Investment
Operating
Cost
Energy
Efficiency
Brand Buyer's
Preference
for a Local
Company or
MNC
Vendors's
Local
Presence
Reliability Low
Maintenance
Technical
Features
Conformance