Advanced Info Service Selects Oracle Alloy to Build Thailand's First Locally Owned and Operated Hyperscale Cloud

Rhea-AI Summary

Advanced Info Service (AIS), Thailand's largest mobile network operator, plans to deploy Oracle Alloy to launch AIS Cloud, the country's first locally owned and operated hyperscale cloud. This strategic collaboration will provide access to over 100 Oracle Cloud Infrastructure (OCI) services, including AI capabilities, to enterprises and public sector organizations in Thailand.

AIS Cloud will be deployed in two AIS data centers in Thailand, addressing data residency and sovereignty requirements such as Thailand's Personal Data Protection Act and Cybersecurity Act. This move will accelerate AIS' transformation from a 'Telco to a Techco' and support digital transformation and AI innovation for Thai organizations, contributing to the country's economic growth and competitiveness.

Positive

• AIS to become Thailand's first locally owned and operated hyperscale cloud provider
• Access to 100+ Oracle Cloud Infrastructure services, including AI capabilities
• Addresses data residency and sovereignty requirements for Thai organizations
• Potential to accelerate digital transformation and AI innovation in Thailand
• In-country disaster recovery capabilities for business resilience

Negative

• None.

Tech Expert

AIS's adoption of Oracle Alloy to create Thailand's first locally owned and operated hyperscale cloud is a significant development in the country's tech landscape. This move positions AIS to transition from a traditional telecom company to a technology company, potentially reshaping the competitive dynamics in Thailand's cloud market.

The deployment of AIS Cloud with over 100 Oracle Cloud Infrastructure (OCI) services, including AI capabilities, could accelerate digital transformation across various sectors in Thailand. This is particularly noteworthy as it addresses critical concerns around data sovereignty and regulatory compliance, such as the Personal Data Protection Act and Cybersecurity Act.

From a technical perspective, the ability to offer in-country disaster recovery capabilities enhances business resilience, which could be a key differentiator for AIS in attracting enterprise customers. The local operation of cloud services also promises reduced latency and improved performance for Thai businesses.

However, it's important to note that while this move positions AIS as a pioneer in Thailand's cloud market, the company will face challenges in competing with established global cloud providers. AIS will need to leverage its local market knowledge and existing customer base effectively to gain a competitive edge.

Market Research Analyst

The partnership between AIS and Oracle represents a strategic move in Thailand's rapidly evolving cloud market. With IDC forecasting a 31.5% CAGR for sovereign cloud spending in Asia Pacific excluding Japan, AIS is well-positioned to capitalize on this growing demand.

The emphasis on data sovereignty and local operation aligns with a broader trend we're seeing across Asia, where regulatory compliance and data protection are becoming increasingly important for businesses and government entities. This could give AIS a significant advantage in attracting customers who are hesitant to use foreign-operated cloud services due to regulatory concerns.

Moreover, AIS's existing customer base of over 45 million mobile subscribers provides a substantial potential market for cross-selling cloud services. This established presence in the Thai market could accelerate adoption of AIS Cloud, particularly among small and medium-sized enterprises that may prefer a local provider.

However, it's important to note that success in the hyperscale cloud market requires substantial ongoing investment in infrastructure and talent. AIS will need to demonstrate that it can match the pace of innovation and scale of global cloud providers to maintain competitiveness in the long term.

Financial Analyst

The strategic partnership between AIS and Oracle to launch Thailand's first locally owned and operated hyperscale cloud presents significant financial implications for both companies. For AIS, this move represents a diversification of its revenue streams beyond traditional telecom services, potentially opening up new high-growth market segments.

While specific financial projections aren't provided, the hyperscale cloud market typically offers higher margins compared to traditional telecom services. This could positively impact AIS's profitability in the medium to long term, assuming successful market penetration and operational efficiency.

For Oracle, this partnership aligns with its global strategy of expanding its cloud footprint through local partnerships. This approach allows Oracle to penetrate markets where data sovereignty is a concern, without the need for substantial direct capital investment.

Investors should monitor key metrics in future financial reports, including:

• Revenue growth in AIS's cloud services segment
• Changes in overall profit margins as cloud services scale
• Capital expenditure related to cloud infrastructure
• Customer acquisition costs and retention rates for cloud services

While the long-term potential is promising, it's important to note that significant investments in infrastructure, marketing and talent will likely be required in the short term, which could pressure near-term profitability.

Advanced Info Service (AIS) Cloud will offer more than 100 Oracle Cloud Infrastructure services and help organizations address relevant regulatory and data sovereignty requirements

AUSTIN, Texas and BANGKOK, Aug. 1, 2024 /PRNewswire/ -- Advanced Info Service (AIS), one of Thailand's largest mobile network operators, today announced plans to deploy Oracle Alloy and launch AIS Cloud, the country's first locally owned and operated hyperscale cloud. Oracle Alloy will provide AIS' customers and all enterprises in Thailand, including the public sector, access to more than 100 Oracle Cloud Infrastructure (OCI) services, including the latest artificial intelligence (AI) capabilities. Oracle is the only hyperscaler capable of delivering AI and a full suite of 100+ cloud services across dedicated, public, and hybrid cloud environments, anywhere in the world.

AIS has established a proven track record of providing mobile network services to more than 45 million subscribers across Thailand. To build on this success and capitalize on the business opportunities, scale, and performance of the cloud, while innovating at the speed of hyperscale cloud providers, AIS selected Oracle Alloy. AIS Cloud will help AIS' customers address data residency and sovereignty requirements such as Thailand's Personal Data Protection (PDPA) Act and the Cybersecurity Act. AIS Cloud will be the only hyperscale cloud in Thailand, providing business resilience with in-country disaster recovery capabilities.

"For over 34 years, AIS has continuously developed digital technology infrastructure to provide customers in Thailand with a superior digital experience," said Somchai Lertsutiwong, chief executive officer, AIS. "This is coupled with leveraging our network's potential by collaborating with various partners to connect and support public and private sector organizations in achieving effective digital transformation. This enhances the capability and elevates the ability to create business growth, leading to sustainable competitive advantages for the country."

"Cloud technology plays a pivotal role in supporting the IT infrastructure modernization and innovation for organizations in Thailand, and Oracle Alloy has made it possible for AIS to become a locally owned and operated hyperscale cloud provider in the country," Somchai Lertsutiwong added. "This strategic collaboration between Oracle and AIS will not only accelerate AIS' transformation from a 'Telco to a Techco' but also unlock the immense potential for digital transformation and AI innovation for all organizations. AIS Cloud, powered by Oracle Cloud Infrastructure, will be key to transforming the core operations of businesses to capitalize on the market opportunities and create differentiation to take on the competition. This will significantly contribute to increasing the competitive advantage of Thai organizations, attracting investments, and supporting Thailand's economic engine for sustainable growth."

AIS Cloud will be deployed in two AIS data centres located in Thailand and will be operated by AIS who will deliver cloud services to its customers including local support, providing them with a local cloud solution to meet regulatory requirements. Customer information will also be housed within Thailand to help customers address data sovereignty and regulatory requirements across industries. With Oracle Alloy, AIS will be able to extend 100+ OCI services to public and private sector organizations, as well as its managed service partners. This will allow customers to repatriate their existing cloud environments from overseas back to Thailand or move and modernize from on-premises to AIS Cloud deployed in AIS data centres in Thailand.

"Providing our partners and customers with more choice has always been our priority," said Garrett Ilg, executive vice president and general manager, Japan & Asia Pacific, Oracle. "Thailand is a strategic market for Oracle and the Oracle Alloy collaboration with AIS will serve as an industry gamechanger for the country. It empowers AIS to become a hyperscale cloud provider, enabling them to build new services faster while delivering sovereign cloud and AI capabilities for its Thai customers. With its local expertise and deep market knowledge, AIS is strongly positioned to deliver tailored customer experiences by addressing specific customer needs related to where the workloads reside and how their cloud is operated."

"IDC forecasts spending on sovereign cloud to increase at 31.5 percent compound annual growth rate (CAGR) in APEJ," said Daphne Chung, Research Director, Cloud Services and Software Research, IDC Asia/Pacific. "The APEJ Cloud Survey 2023 showed that 19 percent of APEJ organizations expect to increase their spending on sovereign cloud in the near future as a component of organizations' hybrid cloud strategy driven by compliance and regulations as well as the need for greater operational resiliency."

Oracle's Distributed Cloud Delivers the Benefits of Cloud with Greater Control and Flexibility

Oracle's distributed cloud lineup supports:

• Public cloud: Hyperscale public cloud regions serve any size of organization, including those requiring strict EU sovereignty controls. See the full list of regions here.
• Dedicated cloud: Customers can run all OCI cloud services in their own data centers with OCI Dedicated Region, while partners can resell OCI cloud services and customize the experience using Oracle Alloy. Oracle also operates separate U.S., UK, and Australian Government Clouds, and Isolated Cloud Regions for U.S. national security purposes. Each of these products provide a full cloud and AI stack that customers can deploy as a Sovereign Cloud.
• Hybrid cloud: OCI delivers key cloud services on-premises via Oracle Exadata Cloud@Customer and Compute Cloud@Customer and is already managing deployments in over 60 countries.
• Multicloud: Options including Oracle Database@Azure, HeatWave MySQL on AWS and Microsoft Azure, Oracle Interconnect for Microsoft Azure, and Oracle Interconnect for Google Cloud allow customers to combine key capabilities from across clouds.

About AIS
Advanced Info Service Public Company Limited (AIS), is a digital infrastructure service provider driving Thailand's digital transformation through four business groups, serving a customer base of over 49.8 million. These include mobile phone services on the 5G network with the highest frequency band of 1460 MHz, catering to over 45 million users; Broadband internet services under the AIS 3BB FIBRE3 with over 4.8 million users; corporate customer services; and digital service businesses. All of these are in line with the vision of becoming a leading telecommunications and smart technology organization – Cognitive Tech-Co, supporting the strength of the digital economy and elevating the quality of life for Thai people. Meet us at www.ais.th (as of March 2024).

About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at www.oracle.com.

Trademarks
Oracle, Java, MySQL and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.

 

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SOURCE Oracle

FAQ

What is AIS Cloud and how does it relate to Oracle (ORCL)?

AIS Cloud is Thailand's first locally owned and operated hyperscale cloud, powered by Oracle Alloy. It will offer more than 100 Oracle Cloud Infrastructure (OCI) services, including AI capabilities, to enterprises and public sector organizations in Thailand.

How will AIS Cloud address data sovereignty concerns in Thailand?

AIS Cloud will be deployed in two AIS data centers located in Thailand, helping customers address data residency and sovereignty requirements such as Thailand's Personal Data Protection Act and Cybersecurity Act.

What are the potential benefits of AIS Cloud for Thai organizations?

AIS Cloud aims to accelerate digital transformation, support AI innovation, enhance business resilience with in-country disaster recovery, and help Thai organizations increase their competitive advantage in the global market.

When is AIS Cloud expected to launch in Thailand?

The press release does not specify an exact launch date for AIS Cloud. It states that Advanced Info Service (AIS) has announced plans to deploy Oracle Alloy and launch AIS Cloud, indicating it is a future development.