US and Chinese cloud companies merge to rule south-east Asia market

us and chinese companies collaborate

Last year’s Ramadan gave more sales in one day than its six years of operation. To get through the surge in traffic, Indonesia’s online shopping company seeked the help of Google and Alibaba to function its Ramadan event via their cloud servers.

Herman Widjaja, a senior vice-president of engineering at Tokopedia, said that with the help of these two companies they could reduce the risk of its website and app crashing at such an important moment. But the decision to look beyond Alibaba, which has two Indonesian data centres and is an investor in Tokopedia, is a sign of the growing competition in south-east Asia between US and Chinese cloud companies.

“The rise of Chinese cloud vendors such as Ali Cloud has prevented Amazon Web Services and others from dominating the market in the Asia-Pacific region. The addition of Huawei cloud makes the competition more fierce,” Mr Wu, a senior research director for Gartner said. 

“Many of these are traditionally SME-heavy markets with smaller companies, but once these are brought into the digital economy, that rolls up to significant demand in aggregate with hundreds of thousands of customers,” said Neel Laungani, head of technology, media, and telecoms (TMT) investment banking for Asia-Pacific at Deutsche Bank.