Indonesia continues to attract big names of tech

Indonesia is the fourth largest country in the world. With a population of over 264 million, just imagine the amount of data this country generates daily. With Indonesian regulation laws insisting that data be stored within the country, more tech giants are moving to build and invest in data centres in Indonesia. Among the big guys in Indonesia include Google, Alibaba and Amazon.
DataStorage Asean spoke to Yulius Lynarda, Digital Services & Software Regional Manager, Indonesia, Malaysia and Brunei, Schneider Electric to understand why this is happening. According to Yulius, Indonesia has the potential for the location of data centres due to the number of population and the number of internet usage. However, there are some technologies to choose to put data centres which are Cloud base data centre, Centralized on-premise data centre and Edge data centre.
“User can select one of them depending on their business strategy. Each of them has benefit and weakness. I believe big players also do the same thing. Let’s see what will happen. We still have a positive expectation that they will invest in a data centre in Indonesia.”
But With the arrival of the big players in Indonesia, what happens to the smaller data centre providers and in-house data centres?
Yulius believes this is where Hybrid IT comes into play. He said there is not a singular deployment of IT, as organisations will choose deployment based on application requirements like cost, latency and such. Hence, he believes cloud, on-premise and Edge will all continue to grow.
Schneider in Indonesia 
Yulius agrees that the Data Center sector has very large business prospects, especially with the high penetration of internet and data usage that encourages the growth of the Data Center sector in Indonesia.
The Data Center requires a large enough energy supply as it can spend around 20% of a company's total energy consumption. As a sector where the distribution of electricity is a major factor in business continuity with a consumption level of 10-100 times greater than standard office space per square meter, the Data Center requires advanced electricity installation and management planning compared to other sectors. From the operational side, downtime can cause critical data damage, risk of damage to equipment and other assets and the large cost of repairing and restoring networks and systems.
“At Schneider Electric, we are committed to educating the market on how digitisation in energy management is crucial to support the goals of every business’s stakeholders by unlocking value & growth opportunities.”
Concerns for development 
With that said, we asked Yulius what biggest concerns and challenges businesses face when it comes to enterprise software and IT infrastructure. To which he explained that the primary concerns that businesses & challenges have with enterprise software are:

  • Ensuring that the software is properly adopted and utilised by the end-users of the software. This is more than just training. Uses need to become very familiar with the capability of the software and it’s functionality so that the benefits of the investing in the software are realised by the business and have a positive impact on the business objectives Likes: cost reduction, improved asset management, better capacity management and so on. “CEOs and CFOs will ask how this software is going to transform my business?”

  • Scale and connectivity are an important consideration. The software must be able to scale and add value across the enterprise’s total environment. For example not just monitor and manage data centre UPS units alone, but it must be able to monitor and manage macro infrastructure such as power, cooling and physical security as well as micro IT equipment such as single-phase UPS, IT Servers and so on. Also, to improve the benefits that are derived from using the software, the business needs to connect every device possible.

  • Analysing the data that is collected, to create useful and actionable information is also a challenge. How do businesses maximise the use of this information to make better decisions? The software must be able to collect, consolidate and analyse data across the enterprise to help the business managers move from reactive management practices to more proactive management. Adopting interactive dashboards and AR systems help to translate the information that can be more readily used by the operations personnel and executive managers.

  • Finally, increasing cybersecurity threats across all components of the business are a primary concern. Everything from the physical security of assets and facilities, to cloud security, application security, data security and privacy protection are all key areas of focus for the business. The enterprise software must be designed and intuitive to ensure that it provides consistent and current levels of IT security. Not only must the software itself be secure, but it also needs to be able to add additional value/functionality across multiple operational areas. For example, it should be able to assess security threats or gaps in the devices or assets that it is monitoring or managing and then make recommendations to address the risk, or use AI to identify and close the risk automatically.    

5G in Indonesia  
As the world prepares itself for the implementation of 5G, we asked Yulius how this will have an impact on Indonesia.
“5G delivers low or no latency. That means there will be no time lag between a device pinging the network and receiving a response. The true value of 5G is how this increased speed and responsiveness can connect and combine technologies that require huge amounts of data.”
He added that remote surgery is a good example of the so-called ‘tactile internet’, a procedure that was demonstrated at the World Mobile Congress. Thanks to 5G, a team of doctors were able to operate on a patient while being directed over a video link by a surgeon several miles away. 5G opens up limitless possibilities for remote activities that demand instant connectivity, while virtual and augmented reality will greatly benefit from 5G’s advanced processing capability. Powered by 5G, digital technologies can change the way we shop, play, and work.
“With so many connected technologies taking advantage of 5G, the challenge will be to process the high volumes of data at high speed. This is where edge computing comes in. Often referred to as the next major technology trend after the cloud, edge computing describes an environment where data processing takes place as close as possible to the data source. This will ensure speed and low latency, helping to meet 5G’s performance goals. However, there will still be a need for central data centres to handle applications’ less latency-critical needs.”
Adding to that, Yulius explained that creating the right infrastructure for data centres requires a blend of skills. For example, he said Schneider Electric is a data centre expert with knowledge of cloud computing solutions from hyperscale down to edge micro data centres. The company’s cloud-based EcoStruxure™ IT solution platform provides an IoT-enabled, open, and interoperable environment that is particularly suited to the hybrid approach required for 5G.
“EcoStruxure has three layers: connected products, edge control, and apps/analytics/services. These layers connect with each other through the flow of data over IT networks and offer the highest levels of control and analysis. EcoStruxure IT is fundamentally about optimising performance and maximising the value of data to make data centres more reliable, efficient, cost-effective and easier to manage. It provides global visibility and intelligence across a multitude of deployment sites, from on-premises and cloud to colocation and edge applications. It is also easy to deploy and configurable to individual needs.”
With that said, Indonesia seems to be headed in the right direction to become a major hub for data centres in the region.

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