Dedicated hosting rakes it in for DataOne

With the seventy percent of its revenue from the dedicated hosting business, DataOne will set up IDCs in China, Hong Kong and Taiwan, starting next month.
Written by ZDNet Staff, Contributor
With the seventy percent of its revenue from dedicated hosting, DataOne will set up IDCs in China, Hong Kong and Taiwan, starting next month.

KUALA LUMPUR (Asia Pulse) - DataOne Asia (Malaysia) Sdn Bhd, an Internet Data Centre [IDC] operator, expects to add 30 percent to the group revenue of its parent company, Singapore-based DataOne (Asia) Pte Ltd.

DataOne (Asia), which is under Singapore public-listed Keppel Telecommunications and Transportation Ltd, hoped to achieve RM550 million in IDC operations revenue from the region by 2004.

DataOne (Malaysia) is one of seven IDCs in four countries in the region, namely Singapore, Thailand, Malaysia and the Philippines.

Michael Warren, managing director DataOne Asia (Malaysia) Sdn Bhd, said that the cost to set up the IDCs in the four countries totalled RM110 million.

The first Malaysian IDC located in the Malaysian Technology Development Corporation [MTDC] server farm in Serdang took RM11 million to build.

The second, planned in the same vicinity, could consume another RM25 million and to be completed by year end, Warren said.

He said that 70 percent of IDC's revenue are from the dedicated hosting business which clearly justified DataOne Asia's commitment to have more than 20 IDCs in more than 11 countries by July, 2001.

The next phase will see DataOne setting up IDCs in China, Hong Kong and Taiwan, starting next month.

Beginning March 2001, DataOne will be heading for Japan, Korea and Indonesia, he said.

DataOne's dedicated hosting enables the company's targeted clients like multinational companies [MNCs], dotcom Internet companies and small and medium sized enterprises [SMEs] to outsource systems applications and hardwares pertinent to their businesses at DataOne's IDC.

Dedicated Hosting dynamics
Dedicated hosting allows the clients to use the systems applications and hardwares on a `compute-power-on-demand' basis, Warren said.

Unlike the co-location services which DataOne also provide, clients--particularly SMEs not having the systems applications and machines--are given the liberty to use applications to set up their Internet businesses fast.

"DataOne provides the machines, operators, systems applications and allow them to use it on a compute-power-on-demand basis where and when they need a systems application they use it, when they don't they do not pay for it," he added.

Looking ahead, DataOne Asia will partner both Malaysian Internet service providers [ISPs] and application service providers [ASPs] to provide its customers with a complete range of hosting services, enabling them to focus on their core business activities and seize e-business opportunities, he said.

The company is already in negotiations with selected Malaysian telcos and ISP companies in striking up strategic relationships to facilitate customers in their Internet access and connectivity needs.

This includes on-line payment, product delivery and billing services, Warren said.

DataOne Asia currently has strategic technology alliances with several well-established industry players in the development of its regional IDCs.

These companies include Hewlett Packard, Computer Associates, Dun & Bradstreet, Cisco, SingBizInfo, Broadvision, Top Layer, Novell and Nortell Networks, Ensim.

DataOne's IDC also provides web hostng, server management and private vault services.

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