Alfie Amir is a senior analyst in Current Analysis Group. He is responsible for research, consulting and analysis focusing on market and technology trends, competitive analysis and account-based intelligence for ICT spending and modeling future investments. He also works across several trackers (e.g., fixed, mobile and IT) providing market sizing, forecasts and insights across the region. Alfie is quoted regularly in trade press and is a regular speaker at conferences, workshops and other industry events.
• Carriers continue to expand their partner ecosystem with players across the technology stacks to enhance their end-to-end 5G solution capabilities.
• These initiatives will strengthen providers’ mind share and enable them to capture the early market opportunity through use case co-creation and commercialization.
The previous quarter saw wider partnerships between carriers and IT providers to further expand their enterprise 5G initiatives including AIS with Singtel and NCS, Maxis with HPE, M1 with Accenture, Celcom with HeiTech and IOH with Tech Mahindra (for more, please see ASEAN 5G Q2 2022 Roundup: Wider Partnerships Between Carriers and IT Providers,August 3, 2022). In Q3 2022, ASEAN carriers continued to expand their partnerships with leading technology players to launch innovation facilities and drive industry collaborations with enterprises across different verticals. This includes Singtel and Intel’s partnership on MEC Incubator, AIS and ZTE’s collaboration on 5G Center and Maxis’ wider 5G Alliance. Continue reading “ASEAN 5G Q3 2022 Round-Up”→
• Hyperscalers are making a move in ASEAN, expanding their footprints in key markets.
• Telcos will need to redefine their product and go-to-market strategies in the cloud, edge, and enterprise 5G.
Hyperscalers Are Making a Move in ASEAN Leading hyperscalers are aggressively expanding their presence globally, with ASEAN being one of the key markets (for more, please see ”Hyperscalers Making a Move in ASEAN,” September 27, 2022). From Singapore, hyperscalers expanded to Indonesia and are now further expanding their footprints in the other key ASEAN countries such as Malaysia, Thailand, and the Philippines. Amazon Web Services (AWS) announced its Local Zones in the Philippines, Thailand, and Vietnam; Google Cloud is building new regions in Malaysia and Thailand; Alibaba Cloud opened new regions in the Philippines, and Thailand and has the widest presence in ASEAN; and Microsoft is planning to open new data centers in Indonesia and Malaysia. The move was driven by the growing demand for cloud services in the region accelerated by the pandemic. ”GlobalData Global IT Customer Insight 2022” shows that 75% of 166 ASEAN enterprises have increased their spending on cloud in 2022 while ”GlobalData Market Analyzer” (last viewed in September 2022) estimates that the cloud market in the region will double in the next five years from $16.3 billion in 2021 to $33.8 billion in 2026.
• There were mixed developments in the telco enterprise ICT space.
• Despite positive progress, telcos should further expand their ecosystem partners for advanced technologies and wider collaborations.
There were mixed developments by Malaysian carriers in Q2 2022, from Maxis’ new 5G alliance, TM’s new solution arm (Credence), TIME’s partnership with Fortinet and its plan to sell its data center business and MCMC’s approval of the Celcom-Digi merger.
• There were growing collaborations between carriers and IT providers that mutually benefit both parties.
• These partnerships will accelerate enterprise 5G developments in the region, but could also lead to challenges such as go-to-market and customer ownership.
Compared to the previous quarter (for more, please see ASEAN 5G Q1 2022 Roundup: Beginning of 5G Network Slicing and the Platform Play, April 8, 2022), there were a lot more initiatives on enterprise 5G driven by telcos and other industry players in Q2 2022. Telcos continued to enhance their 5G and service capabilities through partnerships with IT providers, including AIS with NCS, Maxis with HPE, M1 with Accenture, Celcom with HeiTech, and Indosat Ooredoo Hutchinson (IOH) with Tech Mahindra.
Singtel’s Paragon platform streamlines different 5G capabilities and can minimize the barriers to adoption of enterprise 5G solutions.
Leading providers such as Singtel and PLDT have started their initiatives on network slicing. This will enable wider enterprise 5G applications and private network solutions.
It was a slow start of the year for enterprise 5G in ASEAN, especially after strong momentum in 2021 with various industry collaborations and new feature launches (e.g., SA, MEC, private network). There were only a few key announcements on new launches and partnerships. Nevertheless, there were a couple of key milestones in market development in the region. Singtel, one of the most advanced 5G providers in the region, launched an all-in-one 5G platform in the market. This is crucial for driving enterprise adoption by streamlining diverse initiatives across various 5G capabilities such as private networks, edge computing, network slicing, and IoT. This could also be the beginning of 5G platform plays enabling automated service provisioning and on-demand commercial models. The second highlight is network slicing. While the network slicing feature is still new in the market, several providers such as AIS, Singtel, and PLDT are taking a proactive approach to trials and include this feature in their 5G offerings to gain a competitive edge. Other players are expected to build similar capabilities to close the gap in the near future. Continue reading “ASEAN 5G Q1 2022 Roundup: Beginning of 5G Network Slicing and the Platform Play”→
There is no immediate impact from the Russia-Ukraine conflict on the enterprise ICT sector in ASEAN, but there could be several indirect influences such as an increase in cyberattacks, rising energy prices, and more shortages in the global supply chain.
ASEAN businesses should strengthen their cybersecurity framework, expand the use of renewable energy, and accelerate updates and rollout of critical infrastructure.
It has been a week since Russia launched a large-scale military attack on Ukraine, and there have been various economic and supply-chain impacts across industries such as energy, manufacturing, automotive, and transportation, especially in Europe. While there is no direct impact on the ASEAN ICT sector so far, there could be several potential indirect influences on the industry in the longer term. Continue reading “Russia-Ukraine Conflict: Potential Impact on ASEAN ICT Industry”→
Professional services are becoming critical in the enterprise ICT market. New technologies are widening enterprises’ internal skillset gap and hence driving the need for managed services. As these service experts are becoming scarce, ICT providers are looking for inorganic solutions to enhance their internal capabilities and address the growing market demand. In the last quarter (Q4 2021), Maxis had one while Celcom made two acquisitions of service companies.
Maxis acquired MyKRIS: Maxis made its fourth acquisition in the last two years with MyKRIS, a managed network and security service provider. While MyKRIS’ networking portfolio somewhat overlaps with Maxis, it can enhance the latter’s services through network redundancy. More importantly, MyKRIS’ cybersecurity solutions and team of 70 experts can enable Maxis to expand its ICT portfolio particularly in cybersecurity through wider partnerships, and enhance its service capabilities. Besides, with accelerated technology adoption during the pandemic, cybersecurity requirements are getting more complicated. Cybersecurity is increasingly offered as an integrated solution with other ICT services such as cloud, networking, UC, and IoT. Aligned with Maxis’ direction in expanding its portfolio, the added capabilities can enhance its overall offerings and service delivery. Furthermore, the added capabilities can also enable Maxis to challenge competitors such as TM who has established cybersecurity practice through its CYDEC brand. For more, please see With MyKRIS, Maxis Makes Fourth Acquisition in 18 Months, Further Enhancing Its Enterprise Portfolio , October 14, 2021. Celcom acquired Bridgenet: Following its acquisition of Infront in November (for more, please see Celcom Acquired Infront to Enhance Cloud Service Capabilities and Go Beyond SMBs , November 8, 2021), Celcom made another deal in December with Bridgenet, an ICT service provider. While Bridgenet’s focus was largely on cybersecurity and networking, it has a range of other ICT solutions including cloud and UC. As Celcom is still new in the enterprise ICT market with a limited portfolio, Bridgenet’s solutions, partners, and experts can fast-track the provider’s strategy to expand its offerings and close the gap with competitors. The added capabilities can also strengthen Celcom’s position and enable it to expand its target market to the larger enterprise segment. For more, please see Celcom Ups Its Enterprise ICT Game with Bridgenet Acquisition , December 2, 2021.
In 2022, Celcom and Maxis are expected to add new services in their portfolio leveraging the capabilities from their acquisitions. There will also be enhancements in their existing services adding new vendor supports (e.g., multi-vendor SD-WAN) as well as integrating security with cloud and SD-WAN such as CASB and SASE. Further, the stronger professional services will also enable Celcom and Maxis to compete for more complex ICT projects such as enterprise 5G applications and multi-cloud services. They will continue to pressure the existing players such as TM ONE and other IT service providers leveraging their strong brands in the mobility and SME segments.
• Advanced telcos in ASEAN expanded their vertical collaborations and entered the trial and pre-commercialization stages of enterprise 5G applications while others started to form alliances with domestic players to co-create new solutions.
• Smart manufacturing, autonomous vehicles, and robotics are leading the enterprise 5G development in ASEAN, in line with the global trends.
Q3 2021 was about telcos moving from the network deployment to solution development stages (for more, please see ASEAN 5G Q3 2021 Roundup: Competition Heats Up, October 7, 2021). Moving into Q4 2021, telcos moved to the next development stage through wider collaborations with technology providers (e.g., network vendors, cloud providers) and other industry players to co-develop and trial new enterprise 5G solutions. While most telcos are still in the application development stages, providers such as AIS Thailand and Singtel Singapore are already in the field trial and pre-commercialization phases. In line with the global trends, applications like smart manufacturing, autonomous vehicles, and robotics are leading the enterprise 5G development. This is driven by tangible use cases such as improving operational efficiency and remote operation during the pandemic as well as wider involvement by players in the industry such as ABB, Bosch, Mitsubishi Electric, and Proton.