News Column

Thai market key as Cisco banks on cloud-based growth

July 7, 2014

By Suchit Leesa-nguansuk, Bangkok Post, Thailand

July 07--Cisco System Inc, the world's largest computer networking company, is bolstering its presence in the fast-growing cloud technology-based services and software products in Thailand to capitalise on the new business opportunity.

The cloud-based market in Thailand is expected to be worth US$1.6 billion by 2018.

Globally, Cisco Group plans to invest at least $1 billion to boost its cloud-based ventures over the next two years.

Vatsun Thirapatarapong, managing director of Cisco System (Thailand), said the company will set up a cloud business team in fiscal 2015, which runs from Aug 1, to expand the scope of its cloud-based services to software and other cloud-related services, from the previous focus on networking equipment and servers. The team will consist of both sales staff and engineers.

Mr Vatsun said Cisco is preparing to offer cloud services on a pay-per-use model for web conferences and collaboration cloud services.

The company will appoint at least three local partners to resell its cloud services.

Cisco Group also plans to launch its inter-cloud fabric software globally in the next fiscal year, which allows customers to build secure hybrid clouds and extend their existing data centres to public clouds as needed and on demand.

Mr Vatsun said Cisco expects the cloud-related business to be a key growth engine for the Thai operating unit, with the market estimated to be worth 2.8 billion baht in 2014, up 25% from last year.

According to research firm BMI, cloud spending in Thailand is expected to reach $700 million this year, rising to $1.6 billion by 2018.

He also said Cisco is counting on the hybrid fibre coaxial (HFC) market to grow significantly in Thailand this year, as the technology is set to replace the ADSL system.

HFC is fixed line-based broadband network that offers three to five times lower investment costs than the fibre optic system. There are 4.7 million fixed broadband household users in Thailand, but only 700,000 households use HFC.

According to National Statistics, the penetration of fixed broadband users in Thailand is 23.5% of the total 22 million households in the country.

"We believe the penetration of fixed broadband users could reach 40% in the near future," said Mr Vatsun.

He said Cisco Thailand will become the group's largest revenue contributor, replacing Singapore, by fiscal 2014 ending this month.


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Source: Bangkok Post (Thailand)

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