Market for cloud services in Malaysia

Goals

To understand the following information with regard to cloud services in Malaysia:

1) Total addressable market, based on industry and company size (in $ and number of people/employees).
2) Market share of the following players: Microsoft, Google Cloud Platform, Amazon Web Services, and AliCloud.
3) Which segments of the overall Malaysian market are the most underserved/unsaturated when it comes to cloud services (e.g. which areas of the general Malaysian market are not currently on cloud but would benefit from it and may be difficult for larger companies to properly service, this may include things like economic indicators that suggest certain segments are growing in regard to cloud services need or are using out-dated-systems that are in need of change).


Early Findings

Total Addressable Market

  • "IDC predicts that by 2021, Malaysian enterprise spending on cloud services and cloud-enabling hardware, software and services will reach USD$621 million. Notably, out of which 50% of the cloud environment will be multi-cloud."
  • Globally, the cloud services market is valued at around $325.1 billion as of 2018.
  • The software as a service (SaaS) segment of the global market accounts for 42.5% of the market, while infrastructure as a service (IaaS) is the fastest growing.
  • The Asia-Pacific region will be the second fastest growing geographical area of this market, with a CAGR of 20.7%.
  • Malaysia has a roughly 0.75% share of global GDP, as of 2019.
  • Cloud Storage: A Malaysian survey conducted in 2016 found that 78.6% of respondents used a cloud account to store personal information.

Market Share

  • A 2019 report notes that the cloud services industry is "fairly concentrated: a small number of large entities command significant market shares, and a large number of small entities have minor shares".
  • Globally, Microsoft and AWS have a 74% share of the infrastructure as a service (IaaS) cloud services market.
  • Microsoft, Amazon, and Google are noted as leaders is the global cloud services market.
  • Microsoft: Microsoft is expanding its cloud infrastructure and availability in Malaysia, according to a 2019 report. The company currently had a 13.3% share of the global IaaS market in 2017. Microsoft has an 8% share of the IaaS and IUS (IU cloud storage) market in the APAC region.
  • Google Cloud Platform: As of 2017, Google had a 3.3% share of the global IaaS market.
  • Amazon Web Services: AWS is expanding its cloud infrastructure and availability in Malaysia, according to a 2019 report. As of 2017, AWS had a 51.8% share of the global IaaS market. Amazon has an 11% share of the Iaas and IUS (IU cloud storage) market in the APAC region.
  • AliCloud (Alibaba): Alibaba Cloud is the third largest IaaS provider in the world, with a revenue of $2.5 billion. As of 2017, Alibaba had a 4.6% share of the global IaaS market. Alibaba has a 19.6% share of the IaaS and IUS (IU cloud storage) market in the APAC region.

Underserved/Unsaturated Markets

  • A 2019 report focused on the global cloud services market notes that the top opportunities in this market over the next few years are in the SaaS segment. Specifically, this includes: multi-cloud services, public cloud platforms, cloud computing investments, green cloud services, and hybrid cloud modeling.
  • A 2019 report notes that Malaysia will see an increasing demand for hyperscale cloud services through 2025.
  • A demand for wholesale colocation from cloud service providers is driving the Malaysian market.
  • Government assistance is being provided to help small and medium-sized businesses adopt cloud technologies.
  • Alibaba is the "only global cloud provider with local data centers in Indonesia and Malaysia."
  • Malaysia is considered a growth region for public cloud service providers.

Additional Information

  • The Malaysian cloud services market is covered in this 2019 global market report, however, information specific to Malaysia is paywalled.
  • A competitive landscape of the Malaysian cloud services market that provides the market share of key players is available here, however, it is paywalled.

Proposed next steps:

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There appears to be a significant amount of information available which talks about the Malaysian cloud services industry, due to the fact that the market in this country is expected to be a key growth area in the coming years. The early findings have already identified the market size (TAM) for cloud services in Malaysia in dollars and the percentage of people in Malaysia who use personal cloud services. Further research can be conducted to find or triangulate any additional marketing sizing and hard data statistics regarding the following: the market size of cloud services in Malaysia (and/or any available data that breaks this market down by segment, industry, or company size). These figures can be shown in terms of dollars, number of people, number of businesses, etc. Overall, our team can research to provide any relevant information that can shine additional light on this topic, as much of the information available is broken up/segmented in various different ways. We can also provide any readily available insights that pertain to the APAC region as a whole.
Some market share information regarding Microsoft, Google Cloud, Amazon Web Services and Alibaba Cloud has been identified, however, this data has only been found relevant to the global market. Further research would need to be conducted in order to locate and/or triangulate the market shares of these companies specific to Malaysia. If this isn't available, we may be able to locate or triangulate their shares specific to the APAC region as a whole. This will be relevant to their shares of Malaysian cloud services as a whole and/or it's sub-segments only, e.g. SaaS, IaaS, etc. Whichever information is found to be available/can be feasible triangulated.
Our initial research was able to find some information that helps to shine a light on which segments of the Malaysian market are undeserved and/or are expected to grow. We can conduct additional research to look at specific industries in Malaysia that are currently lacking cloud services (are currently in high demand/expected to be in demand for such technologies in the coming years). We can provide insights for 3-5 specific industries. For each, we can provide the following details 1) a brief description of the industry, 2) data and insights that show the industry is in high demand for such services, 3) an explanation of why the industry is in demand or will be in demand in the coming years, 4) 1-2 examples of players who are currently providing cloud services to this market, including the name of the player and what products they provide to this industry in Malaysia.