Saturday , December 9 2023

VN enterprises hold 20 per cent of domestic cloud market share

Hoàng Văn Ngọc, Director of Viettel IDC, speaks at the summit. — Photo

HÀ NỘI — Vietnamese enterprises only account for about 20 per cent of the cloud computing market share.

The Data Center and Cloud Infrastructure Summit 2022 took place in Hà Nội this week, as information and communication infrastructure plays an increasingly important role in digital, economic and social life.

Hoàng Văn Ngọc, Director of Viettel IDC, said that data usage in Việt Nam had increased seven-fold in the past 10 years.

Domestic connection traffic has increased 40 times in terms of bandwidth, and international connection traffic grew by 25 times.

The number of internet subscribers now accounts for 75 per cent of all Vietnamese households.

“Currently, there are about 20 million to 25 million households that already have fixed broadband. This is the rapid growth of connectivity and people’s needs,” said Ngọc.

In the 2010s, Vietnamese businesses mainly provided single data services, but now, Made-in-Việt Nam suppliers have brought a diverse ecosystem with more than 30 different products and services, helping to solve domestic demand.

Deputy director of the National Institute of Information and Communications Strategy Trần Minh Tuấn said that the data centre market in Việt Nam had 27 data centres over 11 enterprises.

Currently, Việt Nam’s data centres are mainly concentrated in the North and South.

The North accounted for 46.48 per cent, the South accounted for 35.13 per cent, and the Central region accounted for 18.39 per cent. The big data centres are mainly located in the ministries and branches in the Northern region.

In the near future, there will be a big shift when the digital transformation trend takes place strongly in small and medium enterprises, from which we could hope for the explosion of the data centre and equal development in all three regions, he added.

Regarding cloud computing, the Vietnamese market currently has more than 40 enterprises providing cloud computing services.

These include foreign enterprises Google, Microsoft, Amazon, and large-scale domestic enterprises such as Viettel, VNPT, CMC, FPT and some small businesses providing applications.

The cloud computing market share in Việt Nam is mainly in foreign enterprises’ hands. Vietnamese enterprises account for only about 20 per cent of the market share with about VNĐ900 billion (US$39 million).

The rest, 80 per cent of the cloud market share, is held by foreign providers. Amazon Web Services (AWS) accounts for the most with 33 per cent, and Google and Microsoft account for 21 per cent.

If divided by region, cloud computing in the North is still at the highest level with 42 per cent, the South at 39 per cent and the Central region at 16.55 per cent.

According to the Ministry of Information and Communications assessment, there will be three major trends at home and abroad affecting the data market: digital transformation, the development of 5G networks and edge computing, and the need to build a data centre serving the region.

Tuấn proposed a goal of two national large data centres serving the Digital Government, a national monitoring centre on data centre, three regional data centres serving the digital economy and digital society, and one or two regional centres serving the needs of regional and international financial centres by 2025.

By 2030, data centres will meet green standards, while 100 per cent of State agencies and 50 per cent of Vietnamese people will use cloud data.

“Việt Nam strives to master technologies for cloud computing and diversify types of applications,” Tuấn said. — VNS

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