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Cloud platform supplier Interoute has launched a virtual datacentre (VDC) zone in Singapore, to enable businesses to locate applications near users in the country.
The service will help potential enterprise customers meet local regulations for cloud computing, by ensuring data stays in Singapore.
Singapore VDC zone is the company’s 16th location globally, and the second in Asia, following the opening of the Interoute VDC Hong Kong zone in 2014.
Interoute VDC is a hyper-converged digital infrastructure platform, with cloud computing capabilities built straight into Interoute’s vast next-generation network.
“With the addition of VDC Singapore, customers can now place applications and data in close proximity to users in Singapore,” said Interoute chief technology officer (CTO) Matthew Finnie.
Gateway to south-east Asian market
With Gartner estimating enterprise IT spending in south-east Asia to reach $62bn by 2018, Singapore is a key market for ICT infrastructure. It is also seen as a gateway to the wider south-east Asian market for western enterprises.
Read more about cloud computing in Singapore
- The Singapore government releases a set of tiered guidelines for organisations to follow if they have a cloud outage
- Singapore has jumped two places on the Asia Cloud Computing Association’s Cloud Readiness Index 2016, to become the second most cloud ready country in the Asia-Pacific
- Alibaba's cloud computing arm is opening a datacentre in Singapore, which is good news for Asean businesses looking for more cloud options
Singapore is investing heavily in cloud computing as it looks to fulfil its Smart Nation vision. Singapore is also an important gateway to Asia-Pacific (Apac) for the UK and global markets. The country is home to in excess of 30,000 British nationals, and more than 700 British companies and billions of pounds of UK investment.
“Interoute is a large European cloud service provider, so it's very likely that they have enterprises either already doing business in Asia-Pacific or are planning to expand into Asia-Pacific,” said Chris Morris, vice-president of Apac IT services and cloud services research IDC.
Most global firms have existing customers in other regions, and when these customers plan to enter Singapore they'd prefer to use the same datacentre operator, according to Frost & Sullivan Apac datacentre and cloud computing industry analyst Sandeep Bazaz.
“This is pushing the global operators to open datacentres in the region,” he said.
IDC Apac cloud research manager Glen Duncan added that North American and European cloud and service providers' physical footprint in the Apac region is continuing to grow.
“The initial landing points have been strategic countries such as Singapore, Hong Kong and Australia. As the region matures, this physical footprint is continuing to push out into other countries including within Asean [Association of Southeast Asian Nations],” he said.
“Reasons for this include to provide significant improvements in latency, as well as to improve security. This accommodates the needs of existing customers and provides a more competitive value proposition to new ones.”
Duncan added that the most compelling reason for taking a locally hosted service is to meet national regulatory requirements.
“Across the region, national governments are legislating to ensure that locally generated and owned data is processed and stored locally,” he said.
“National governments are developing regulations to exercise their sovereignty over data to protect the privacy and security of their citizens.”