Cloud demand skyrockets

Cloud demand skyrockets

Use of data centres also increases

The outbreak resulted in increased demand for cloud computing and data centre services as people adopt remote working.
The outbreak resulted in increased demand for cloud computing and data centre services as people adopt remote working.

The coronavirus pandemic is spurring the use of cloud computing and data centre services as well as business continuity planning (BCP) adoption thanks to remote work measures, says TCC Technology (TCCtech), an IT arm of TCC Group conglomerate.

"During Covid-19, there has been unexpected and unprecedented demand for cloud and data centre services, as people rush to adopt cloud-enhanced solutions," Teerapan Luengnaruemitchai, managing director of TCCtech, told the Bangkok Post.

He said the paradigm shift has shown working from home is a viable option.

Urgent requirements include file sharing, storage, back-up as well as collaboration tools like Teams/Zoom, and core applications and analytics tools from Microsoft, SAP, IBM, said Mr Teerapan.

There is a sharp increase in demand for data centre services, including alternative sites or disaster recovery sites, and connectivity/bandwidth/virtual private networks to access more secured applications such as SAP Hosting, he said.

The demand for BCP is also on the rise, including planning for pandemics.

The outbreak has resulted in delays in decision-making and payment for some customers, Mr Teerapan said.

"This challenge can be manageable with an experienced workforce and growth mindset," he said.

The pandemic is creating opportunities in the tech market as businesses prepare for digital transformation and the future. Companies may require less dedicated space and only want some tools in the co-working space for staff, said Mr Teerapan.

TCCtech has some prepared customers, those who can adapt quickly and need only some support, including cloud and work-from-home solutions, he said.

Other customers require more support as they are in the early stages of cloud adoption or may require training. Some may face extremely adverse impacts as their jobs naturally rely on physical context more than digital operations, said Mr Teerapan.

He said many organisations are more likely to tighten their belts and delay decision-making and payments because of the outbreak. Those who face revenue loss may opt to downsize or shut down their business, said Mr Teerapan.

He said if the pandemic drags into the next quarter or throughout the year, some may suffer from supply chain disruption, resulting in longer time for deliveries, which would be an opportunity loss. Delays in shipment would also weaken customer demand and tech spending.

TCCtech provides IT services to multiple customers, including firms, banks, insurers and manufacturers.

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