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Singapore emerging as data center and cloud hub in APAC

Singapore is becoming the preferred location for data centers in the region, according to Ovum's senior analyst, Claudio Castelli.

According to Ovum, Japan, Singapore, and Hong Kong contain most of the data centers in the Asia-Pacific region. However, while the facilities in Japan are mainly to support its domestic market, Singapore and Hong Kong are competing to be the preferred location for hosting data centers for service providers that serve multi-national corporations (MNCs) in the region.

"As the major global financial hub of Southeast Asia, Singapore has strategic advantages," said Castelli, adding that the island nation has a stable government that has attracted many MNCs, and 60% of MNCs with more than 7,000 employees have their Asia-Pacific regional headquarters in Singapore.

"It is also where most large software application developers such as Google and Microsoft choose to establish their regional presence. Singapore is also one of the major network hubs in the region, which is attractive to both carriers and MNCs. However, it suffers from high real-estate costs and faces serious energy supply challenges," Castelli added.

Telcos have also invested in professional services teams in Singapore, thereby recognizing the importance of professional services, especially at the early stages of communications-as-a-service deployment, to support MNCs with their virtualization transformation and early adoption of cloud computing services.

"Regional professional services capabilities or partnerships with local companies will be essential for coverage outside a carrier's home region -- and a critical mass of relevant expertise is on the verge of taking deep root in Singapore," Castelli said.

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