Tencent Cloud powers cloud migration for Indonesian telco

Tencent Cloud has completed a public cloud migration project for newly merged Indonesian telecommunications giant XLSMART in just over four months, setting a new benchmark for IT modernisation initiatives in Southeast Asia.

XLSMART, formed in April 2025 from the merger of XL Axiata and Smartfren’s operations, boasts a subscriber base of over 69 million users in Indonesia. However, the telecom had serious integration issues following the acquisition, with its IT estate being highly fragmented. This was characterised by more than 60 key applications and 1,200 microservices spread across diverse multi-cloud platforms, making administration and operational efficiency difficult.

To address this complexity, XLSMART launched a cloud transition initiative in December 2025, using Tencent Cloud to enhance its digital infrastructure. Instead of a traditional, labour-intensive lift-and-shift method, the companies did an architectural audit to figure out what to keep, change or optimise.

Due to the complexity of integrating systems from over 10 third-party vendors, over 70% of the XLSMART target applications had to be completely redesigned or rebuilt.

To deliver the project on a compressed timeline, Tencent Cloud applied AI throughout the migration process, including service discovery, architecture design, deployment and system monitoring. The Chinese cloud supplier deployed its coding agent, CodeBuddy, its AI agent workspace, WorkBuddy, and automation tools such as TokenHub.

With these capabilities, Tencent Cloud developed more than 20 specialised cloud migration “skills” for AI agents, automating the most labour-intensive phases of the migration: scanning cross-account environments, mapping hundreds of legacy resource specifications, and generating deployable low-level design (LLD) specification sheets and visual architecture diagrams. This alleviated the need for manual Excel logging, freeing engineers to focus on high-value review and fine-tuning.

Through a single AI-driven migration pipeline, 1,200 microservices, 1,100 application programming interfaces (APIs), over 15 terabytes of core data assets and 900 business interfaces were migrated without any downtime. Tencent Cloud also delivered over 20 core products to the telco – including containers, security services and intelligent advisors – while introducing capabilities such as DatabaseClaw to enhance database operations through agent-based automation.

“Our collaboration with Tencent Cloud is a strategic step in strengthening XLSMART's digital foundation and technology capabilities,” said Yessie D. Yosetya, director and chief information and technology officer of XLSMART. “By building a more modern and reliable infrastructure, we are able to accelerate innovation and continuously enhance the quality of the services we provide.”

Poshu Yeung, senior vice-president of Tencent Cloud and head of Tencent Cloud International, said the agentic AI skills developed during the XLSMART migration have since been consolidated into a reusable AI migration platform for enterprise customers.

“Partnering with XLSMART on this industry-benchmark project has been a privilege, and we will continue to provide solid technical support to anchor their next phase of growth,” Yeung said.