How a renowned Asian Data Center Company is able to do successful Market Entry in Indonesia and Malaysia with Optimal Product and Pricing Positioning

Background and Challenge

Client’s Background:

  • A leading Pan Asian hybrid, hyper-scale and edge data center solutions provider with facilities across Singapore, China and Hong Kong, provides colocation, security, private cloud services, disaster recovery services, and interconnect solutions across cloud service providers, telcos, internet exchanges and major data centers.

Challenges Faced by Client:

  • Difficulties in Accessing Market Entry Opportunities: The Client recognized the difficulties in exploring the market entry opportunities in Indonesia and Malaysia; specifically to Data Center Industry. Hence, they contacted Ken Research and Strategy Advisory to identify the market size, covering the pricing analysis in the Data Center Industry in Indonesia and Malaysia offered by major data center operators in these countries.
  • Limited Resources and Time to Identify the Chief Competitors: The client had limited resources and time period to understand the current competition scenario and their operation and financial KPIs, hence they outsourced this activity to Ken Research.

Data Center Industry at Glance:

  • High internet penetration amongst the Indonesian and Malaysian populations with 72.8% and 84.0%, respectively during 2021 contributes towards the high demand for data center facilities from Telecom and IT industry in these countries.
  • As of 2021, Indonesia has 60+ data center facilities while Malaysia has 40+ facilities across these countries.
  • Majority of the Data Centers are populated near the capital cities of Jakarta and Kuala Lumpur as these are the hubs for major industries in Indonesia and Malaysia.

Approach and Recommendations

Phase 1: To identify top Data Center Operators in the Country

  • Ken collaborated with its client in identifying a comprehensive list of top Data Center Providers in Indonesia and Malaysia.
  • In-depth and detailed discussions were carried out with the top decision making authorities.
  • Company demographics such as employee size, No. of facilities, services provided were also accounted.
  • These discussions gave the client possible opportunity windows to know-how the Competitive scenario of Data Center industry in Indonesia and Malaysia.

Phase 2: Key Assessment of Data Centers, Financial KPIs and Pricing Analysis

  • The second phase of work focused on analyzing the pricing model for the client.
  • Deep Dive Pricing Model Analysis was done to understand the various Financial KPIs of the competitors, evaluating with cost structure for top data center operators in the country.
  • This helped the Client to see through the financial and operational benchmarking of the Data Center Providers with eminent and noteworthy Primary Research by Ken Research in short span of time duration.

Phase 3: Quality Recommendations for Market Entry for the Client

  • After identifying and analyzing the Data Center Industry and Financial KPIs across the market, Ken provided quality recommendations to the client for the Data Center Market.
  • These Recommendations included various growth strategies, success factors and pricing strategies to set-up a Data Center Facility in Indonesia and Malaysia.
  • Ken has provided a clear road map to the Client in order to enter successfully into Indonesia and Malaysia Data Center Market.
Result and Conclusion – Client was able to successfully optimized pricing strategy for Colocation and managed services in Indonesia & Malaysia

Valuable Insights on overall Data Center Industry

  • The competition-specific market assessment will enable the Client to substantially develop their understanding about Data Center Market in Indonesia and Malaysia.

Ability to Identify the right Pricing gaps in Data Center Services

  • The client was able to identify the areas of improvement for their pricing model, thanks to a clear and practical prioritization roadmap, provided by Ken Research.

Shift in Approach Preference

  • Ken Research team also aided client by helping them understand how can they develop their synergies in the business framework basis end user industry preferences.
Business Impact
  • Successful market entry with $30 mn investment

  • Gained market share of 8%

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