Petaling Jaya: Green Packet Bhd and Tencent Cloud have jointly committed to building a cloud computing business that will utilise a minimum of 2,000 servers by the end of the third year of operations.
In a filing with Bursa Malaysia, Green Packet said that Tencent will leverage on its global customer base while Green Packet will leverage on its local Malaysian customer base to build the cloud computing services business.
Last August, Green Packet announced an exclusive collaboration with Tencent Cloud to set up a jointly built cloud ecosystem in Malaysia.
Green Packet had said then that it had initially committed to investing RM100mil on infrastructure for a total of 600 servers and the provision of software solutions.
It also said that the total investment in this collaboration could add up to between RM300mil and RM500mil over the next three years.
Green Packet will be responsible for the setting up of the infrastructure in Malaysia and promoting Tencent Cloud’s ecosystem of software solutions, while Tencent Cloud will be providing the actual cloud computing service from its global reach of customers.
Green Packet had also said then that the collaboration comes with a joint revenue model for 10 years and it is expected to contribute significantly to Green Packet’s bottom line over the coming years.
Malaysia’s cloud market is growing rapidly with an estimated compounded annual growth rate of 13% from 2020 to 2024.
The growth in the cloud computing market has been fuelled by the Covid-19 pandemic as more businesses sought to digitalise their operations.
Tencent Cloud is the fifth largest player worldwide in the cloud computing space.
It is well known for its social media platforms, online video streaming and broadcasting technologies, mobile payments and gaming platforms.