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Research Outline

Prepared for Anh H. | Delivered November 27, 2019

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.