To thrive in the digital-first era, cloud needs to be the cornerstone of business practices

KUALA LUMPUR (Dec 4): Malaysian Investment Development Authority (Mida) announced that a major cloud provider plans to invest over RM25.5 billion over 15 years to establish a new infrastructure “region”. 

As the largest technology investment to date, businesses will be able to leverage world-class infrastructure and advanced technologies to expand their operations, create new jobs, and spur economic growth.

With the government pouring more investments into cloud computing, companies in Malaysia stand to gain significantly, if they can make the most of the resulting opportunities.

Malaysia’s strategic location, abundant natural resources, and comparatively more skilled workforce, makes it an attractive destination for digital investors. Moreover, initiatives like the creation of the Digital Investment Office (DIO) by Mida and the Malaysia Digital Economy Corporation (MDEC) is also a boon; helping investors connect with local partners and navigate regulatory requirements.

Further bolstering this is Malaysia’s own investment in various tech areas, such as nascent 5G infrastructure. As a result, DIO was able to secure RM80.4 billion worth of investments before the end of 2022, ahead of its RM70 billion by mid-decade target.

Cloud computing allows Malaysian businesses to respond quickly to changing demands and market conditions by putting the power to scalable infrastructure in their hands. Through this feature, IT teams can adjust computing power, storage, and software capabilities according to current needs.

This is further enhanced by the “pay-as-you-go” model, which allows businesses to spend only on the resources that are used. Not only does this optimise costs, but organisations will be able to allocate more resources for digital transformation initiatives.

With cloud-based tools, remote and hybrid organisations can connect employees with their work and maintain productivity. It also allows team members to collaborate efficiently on various projects, regardless of physical location. This will transform businesses to become more agile and innovative, which are crucial to thriving in an ever-evolving digital landscape.

There is a notion that cloud computing is really only useful for large businesses. The truth is, however, that it offers growth opportunities for small and medium enterprises (SMEs) as well. In particular, integrating cloud technologies requires no significant upfront costs and is more cost-efficient than building and maintaining on-premises infrastructure. The resources saved can then be used to create new solutions, market products, and expand the business.

Besides that, cloud computing also provides SMEs access to advanced technologies, such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT), that were previously only available to larger enterprises. These technologies can give insights into current market trends and customers’ emotions, allowing SMEs to make better decisions and differentiate in a crowded marketplace.

Not only that, emergent technologies can also be used to automate routine processes, which can shorten time-to-value (TTV). The findings of the Freshservice Benchmark Report 2023 reflect this sentiment, as automated workflows have been instrumental in speeding up average resolution time (ART) by around 23% while also increasing first contact resolution (FCR) rates by 80.1%.

Finally, SMEs will be able to penetrate international markets and connect with new customers by building their own online stores. With the scalability and flexibility offered by cloud computing, they can expand their services to operate and compete on a global scale.

However, cloud computing is not a silver bullet and comes with its own litany of challenges. For one, organisations need to adhere to regulations governing data collection, processing, and management to protect customers’ privacy and boost their retention. This requires the installation of role-based access controls to enforce who can use which resource based on their responsibilities.

While traditional infrastructures are perceived as ineffective and cost-consuming, migrating workloads to the cloud is not an entirely simple matter. IT teams need to consider factors like employees’ resistance to change and disruptions to ongoing operations. Otherwise, companies will find themselves struggling to harness the full power of the cloud.

Lastly, cloud computing relies on a robust and stable internet connection to work effectively. However, remote areas in Malaysia continue to have poor or outdated telecommunications infrastructure, leading to slower services and frequent interruptions. Though authorities are serious about addressing this, Malaysia’s goal of becoming a tech hub could be jeopardised if efforts are not expedited to improve infrastructure.

It is likely that cloud computing will be here to stay due to the massive benefits it offers. As the business landscape becomes more competitive, embracing a cloud mindset is crucial to building relevant customer experiences and penetrating international markets. Malaysian enterprises that fail to do so will miss out on new opportunities, and trail behind their more digitally savvy competitors.

Simon Ma is the director and regional manager for Asean at Freshworks, a cloud-based customer service software company.