Oracle launches first data center in Singapore

[UPDATED] U.S. tech giant says the launch will meet rising demand for cloud, offering software-as-a-service and serving customers in Asia. The facility is its third in the region, with the first two in Australia.

Singapore data center will support delivery of Fusion Applications.

SINGAPORE--Oracle has launched its first data center here to cater to growing demand for cloud-based services in the Asia-Pacific region, offering software-as-a-service (SaaS).

Housed at datacenter operator  Equinix , Oracle's new facility will offer subscription-based access to the vendor's Fusion Applications , which include enterprise resource planning (ERP), human capital management (HCM), customer service, and sales and marketing.

Leslie Ong, managing director of Oracle Singapore, hailed the opening of the Singapore data center as the company's "latest investment in the very fast-growing Asia-Pacific region".

During his keynote at Oracle CloudWorld 2013 event here Thursday, Ong said the country was chosen because of its "excellent telecommunications infrastructure and efficient, well-qualified manpower".

Locating the data center here will allow customers to tap the Oracle's cloud services, while enabling them to meet government regulatory requirements and help ensure sovereignty of sensitive data, he noted.

According to Ronnie Tay, CEO of Infocomm Development Authority (IDA) of Singapore, the country is currently home to more than 10 cloud data centers operated by global service providers. The guest-of-honor at CloudWorld added that the newest facility of U.S.-based Oracle indicates Singapore is a conducive environment to nuture and strengthen a cloud computing ecosystem, from its ability to support ultra-fast high-speed broadband to the recent introduction of the country's  Personal Data Protection Bill .

Oracle's new data center in Singapore is its third in the region, with its other two facilities both located in Australia. Tan Yen Yen, Asia-Pacific senior vice president for applications sales at Oracle, told ZDNet Asia another in Japan is scheduled to open in a few weeks. 

At the vendor's OpenWorld conference last year, it had revealed plans to launch a data center here and said efforts to build similar facilities in other Asian markets would depend on customer demand. 

Data residency to be differentiator

Asked if more data centers were planned for Asia, Tan said no specific places have been identified yet and the company will build out data centers based on customer needs and country-specific requirements.

The Singapore data center benefits its customers as it addresses the need for data residency, especially in the government and financial sectors, she pointed out. "I know from the experience [of our data centers] in Sydney, this gives us competitive edge."

She noted that even with growing SaaS adoption as companies shift from on-premise software infrastructure, companies do not want their own data to reside offshore.

Located in Singapore, cloud services delivered from the data center will appeal the most to customers in Southeast Asia even though India and China are options for the Asian region, Tan said, noting that many regional and global companies have their branch offices or headquarters in Singapore.

Ong said he anticipates the local data center to bring on board both new as well as existing customers, since the latter will want to access new services without having to acquire more infrastructure on top of their preexisting in-house environment.

Oracle joins a list of market players that had launched or announced plans to launch data centers in Singapore, including Pacnet which last month said was investing  US$90 million in a new Tier III facility , and Google which is expected to complete  construction of its new data center  here this year. 

Equinix also said it would be adding a  third 385,000 square-foot data center in Singapore , targeted at financial and cloud services companies and expected to be operational in second-quarter 2014, while  NTT Com  launched data centers in Singapore and Malaysia last year.