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Services market soars in Asia Pacific

Tuesday 17 July 2001 03:13
A report from the research company Ovum points to increased activity in the Asia Pacific managed services sector, which is expected to account for £2.14bn worth of business by 2005.

Singapore Telecommunications (SingTel) upped the ante when it launched its Expan managed hosting services (MHS) last week. MHS will enable multinationals, application service providers and those in Internet-related businesses to outsource their communications networks and Web-hosting needs.

SingTel plans to invest $272m to establish a network of Internet data centers (IDCs) in major Asian countries such as Singapore, Japan, Hong Kong and Sydney.

Expan's tie-up with technology partners and access to satellite and cable infrastructure allows it to offer integrated regional communication networks and Web-hosting services to corporate customers.

Titus Yong, the director of regional marketing/managed hosting at SingTel, said, "SingTel is the only pan-Asian-managed hosting service provider with a network of overseas offices and joint ventures. As a result, customers can have network diversity and easy access to bandwidth."

Other players in the outsourcing market welcomed the SingTel announcement, including managed service providers (MSPs) and other service providers who operate over a network on a subscription basis.

Bruno Lee, the managing director of MSP iWorld Networking, said, "The launching of Expan is a good sign for the market on the whole as end-users will have more choices available. This is a development to cater to a particular segment of the market."

Jonathan Leung, chief marketing officer of NetTasking, another MSP, said, "The primary challenge is the overall low market awareness of the importance of a properly managed IT infrastructure. Most companies in Asia Pacific have the misconception that only large companies are required to implement this task within their IT organizations."

Leung, who is also acting chairman of the recently formed MSP Association Asia-Pacific Chapter, added that the challenge for MSPs lay in educating the market. "The main objective of the chapter is to educate the Asia-Pacific market about the MSP industry and the tangible benefits it brings," he said.