Cloud Power
    Category: E-Gang By : Yessar Rosendar Read : 1844 Date : Monday, February 17, 2014 - 01:07:24

    Courtesy of IBM Indonesia

    Indonesia's internet growth story has a good side and a bad side. The good side is the rapid growth over the years but the bad side is that sometimes the servers for websites can't handle rapid spikes in traffic. The solution, upgrading a server, can be a major investment for smaller firms.

    One solution is a managed service provider (MSP), a third party company hired by customers to perform certain IT functions on an ongoing basis. There are several models of MSPs and one of them is based on the cloud. By using the service, companies can leverage their growth plans by having more efficient operations and more flexibility than owning its own facility.

    IBM Indonesia expects that MSP adoption will increase and hopes that MSP can help companies grow their businesses, especially startups and midsized businesses that have limited budgets. With MSP, customers can adapt the service to their specific needs. “MSP is not a trend—eventually everyone will depend on MSP,” says Suryo Suwignjo, 47, president director of PT IBM Indonesia. IBM currently has 2,300 MSP clients in Southeast Asia, and the global market for MSP is growing at up to 40% per year.

    IBM has already one success story with, one of the largest ticketing sites in Indonesia that was launched in 2012. The site uses cloud computing for almost every function, ranging from Web servers to database servers. With the flexibility of MSP, the site can expand or reduce the amount of servers it needs as the market demands. With MSP the company managed to sell out 1,000 tickets within two minutes for Japanese rock band L'arc~en~Ciel, which was touring the region. Then it sold 5,000 tickets for Korean boy band Big Bang in 15 minutes, with 15,000 concurrent users at one time. Rival sites have seen their sites go down when overwhelmed by too much traffic.

    According to Suryo, MSP's strong points are its agility, flexibility and efficiency. To differentiate itself in the market, IBM offers several value added services such as co-marketing, in which two companies co-brand and co-market a product or service. “Co-marketing is a big differentiator, as it would be a problem if you had a product but you couldn't sell it,” Suryo says.

    Currently most of IBM's MSP clients are big corporate clients with only a small number of startups, according to Suryo. The startup that will get the most benefit from MSP are those that need big computational power such as videogame firms and animation studios. However the implementation of MSP is not without obstacles—the main ones being the quality of the Internet in Indonesia. Cloud services to work properly need a reliable Internet service. If implemented properly, however, the service can be a powerful tool for a company. “A company such as a game developer needs only spend one third of the cost of building and managing its own systems compared to using conventional methods,” Suryo says.