Microsoft to invest around $2.5 billion in Indonesia

January 22nd, 2011 - 2:56 am ICT by BNO News  

JAKARTA, INDONESIA (BNO NEWS) — Microsoft on Friday announced that it will invest around $2.5 billion in Indonesia to develop cloud-computing systems, the Jakarta Globe reported.

Sutanto Hartono, CEO of Microsoft Indonesia, said that the software giant agreed on a partnership with Telekomunikasi Indonesia (Telkom), Astra Graphia Information Technology, Greenview and Infynis System Indonesia for the project.

Cloud-computing systems consist in vast data banks and programs which can be accessed remotely using a personal computer connected to the Internet. Hartono remarked that such systems would be an invaluable assed to corporate market.

“It’s going to be cost-saving and efficient because instead of spending on capital expenditure, a company would spend on operational expansion using cloud computing,” Hartono said.

The announcement was made during the Microsoft Cloud Summit in Jakarta. Cloud computing will also allow users to access online applications anywhere in the world without installing additional software.

According to Chris Sharp, regional cloud strategist for Microsoft Asia Pacific and Japan, Indonesia poses a unique opportunity to generate around $75 million per year from cloud services.

Hartono added that companies would no have necessity of buying servers and technicians to maintain them as the cloud-computing systems only require a computer and a broadband Internet connection, as it functions as a virtual server.

In addition, the cost of maintaining cloud computing is very low in comparison with a server. A cloud service subscription is estimated to cost around $15 per month, an amount that can be afforded even by small businesses.

Larger companies will have the option of creating their own private clouds which can host all their applications. However, Indonesian businesses are adamant to use cloud computing as it is a relatively new concept.

Indonesian companies still have concerns about data security and effectiveness of the cloud technology but Microsoft said that government agencies and at least 14 firms had expressed interest.

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