The Philippines is all set to become the next hyperscale hub and it is definitely a great opportunity for the internet users in the Philippines. Hence, the Philippines is the talk of the town in terms of hyperscale cloud.
In the Philippines, the number of internet users is huge! Around 73.9 million Internet users are seeking opportunities as the Philippines ranks second in data center evolution which is massive, to say the least, among Southeast Asian countries. This is nothing in front of the growth which is going to be witnessed in the coming 3 to 4 years. According to Philippine Trade Secretary Ramon Lopez, the data centers in the Philippines would grow by around 24 percent in the coming time.
Also, the spending on cloud services in the Philippines is expected to grow from US$1.8 billion in 2020 to US$2.6 billion in 2024.
The hype around Hyperscale Cloud
Hyperscale is basically the ability of the architecture to scale down in the right manner in order to accommodate the growing demand which is added to the system. Hyperscalers are the enterprises that make sure to provide seamless delivery so that a scalable cloud could be built. Such popular enterprises are Amazon AWS, Google, and Microsoft.
The hype around hyperscale cloud is genuine because it helps in meeting the increased demand.
Moreover, it is cost-effective, accessible, fast, and reliable. Hence, the demand for hyperscale clouds is increasing day by day. A few key benefits of hyperscale are given below:
- Speed: In terms of speed, hyperscale has left every other technology behind. Plus, for the exceeding computing needs these days, hyperscale cloud is necessary to adopt.
- Little to no downtime: Downtime is the talk of the past. With hyperscale, there is little to no downtime due to increased demand or other problems.
- Improved efficiency: The extra layers of control are reduced in hyperscale which means the computer operations would be easy to handle.
- Digital Transformation: The digital transformation in the hyperscale cloud is extremely nonchalant.
- Scale: Hyperscale helps you to scale up or scale down, depending on the demand.
Importance of Hyperscale Cloud
Today, the demand is exceeding every minute. Hence, there should be a technology to meet the ever-growing demand while taking benefits from the multi-cloud platforms to match the demand, promoting the business growth. Hyperscale cloud provides the opportunity to reduce downtime and stay connected, eliminating all sorts of disruption.
Moreover, the hyperscale cloud connects all the regions in the world through undersea connections.
Hence, the Philippines is one of those regions that has simplified getting connected to the entire world through undersea technology as well as through other solutions.
So, the Philippines is without a doubt, the go-to place for the hyperscalers.
Surely, the Philippines is going to be the next hyperscale hub. But why the Philippines? That’s the question!
Why the Philippines is going to be the next Hyperscale Hub?
Well, there are a number of factors due to which the Philippines is potentially strong enough to become the next hyperscale hub. The economic situation in the Philippines is improving which is a positive sign for the investors and the enterprisers. Moreover, the digital know-how is also captivating in the Philippines.
Also, digital growth has been a major factor in developing the interest of the hyperscalers in the Philippines.
The Internet economy is madly boosting in the Philippines. Therefore, internet users have multiplied in the past few years. Gary Ignacio who is the vice president and head of Strategic Business Development at PLDT Enterprise says that in 2025, internet users in the Philippines would increase to 90 million which is a BIG number!
Currently, the market opportunity is to capture the local presence and deploy cloud regions in the Philippines as much as one can in order to cater to the growing demand with a great chance to earn profits.
- Suitable Location
The best part about the Philippines is its location for the hypescalers. The strategic location of the Philippines offers accessibility to host content and transmit data across Southeast Asia and other bigger Asian Pacific regions. Hence, enterprises are looking forward to adding cable systems, considering the supreme location of the Philippines.
Gary Ignacio stated that their team is adding around 16 cable systems. Moreover, in the coming years, they will look to add more. Plus, he highlighted the Jupiter subsea cable system which is commendable to connect the US and the Philippines, creating a trans-pacific link, for example.
Cable systems such as ADC and Apricot will go live within the next 2 to 3 years in order to bolster Inter-Asian connectivity. Hence, in order to cater to the growing number of cable systems, enterprises are also launching landing stations to ensure smooth connectivity. The hyperscale customers will be looking for such resilience offered through the landing stations.
- International Connectivity
International connectivity is also a big cause for the next hyperscale hub in the Philippines. The Philippines offers continuous connectivity opportunities to worldwide data centers, without even a single hiccup. Resilience is offered and the providers in the Philippines are riding peacefully, thanks to this factor.
The data centers in the Philippines are carrier-neutral which means diversity is offered and connectivity is made simpler.
The international carriage capacity is also increasing due to a huge number of data centers. Undersea global partners have helped to develop such connections that make sure to connect several countries all at once.
The Philippines is becoming an excellent cloud region for exploring prospects. Moreover, the improvement in the digital economy of the country will by default assist the growth of cloud usage. One should not forget that the Philippines is one of the biggest Information Technology – Business Process Outsourcing (IT-BPO) markets in the world with BPO companies opting for cloud-based solutions, the Philippines’ market is going to be a sure-shot winner in the coming days!
- Improved Industry
The government of the Philippines has also noted the increased demand for hyperscale clouds. Therefore, they are also offering opportunities to the companies to expand their cloud operations here. Hence, PLDT, last year announced that they will build the biggest data center in the Philippines.
Ignacio added that they will make sure to build a state-of-the-art data center that would comply with international standards. He also said that they will create a very unique hyperscale design for the data center.
Ignacio happily stated that the Philippines government has identified hyperscale data centers as the main industry sector. So, when the government itself is classifying the importance of hyperscale data centers, it is definitely a win-win situation for the companies. As the government of the Philippines identifies hyperscale cloud, there will be several tax breaks and government incentives to help this sector to grow even more.
Ignacio was enthusiastic to learn about the current and upcoming IT environment of the country where users are developing wired and wireless connections, seeking arrangements from PLDT and several other enterprises and developing the digital future in the Philippines.
The conditions in the country are quite welcoming for enterprises, looking to expand around the area of hyperscale cloud. The government of the Philippines is supporting them at every stage in order to set a positive environment to further increase growth.
Also, the government is providing relaxation in relevant laws and rules, data privacy, security, and other related departments so that the enterprises face no difficulty in working here in the Philippines as it would only help the economy of the country.
- Growing BPO Sector
As mentioned above, the BPO sector in the Philippines is drastically improving and growing. The Philippines is amongst the biggest BPO leaders across the whole world and will be increasing at a rapid pace in the coming times.
Hence, it has driven the demand for Artificial Intelligence (AI) and cloud which is a shift caused due to the remote working setup of the companies where they seek to acknowledge the needs and demands of the customer through an online journey.
Enterprises are moving towards the cloud with vertical applications and hybrid operations in an effort to expand networks through fiber and 5G technology, led by the PLDT company in the Philippines. By 2025, the cloud market in the Philippines would grow to US$ 2.8 billion which is a massive figure, undoubtedly.
The Philippines has become one of the best outsourcing locations in the world. The country is offering amazing education, a hospitable culture, opportunities to grow, and a welcoming government. Hence, outsourcing cloud work here could be a great move as with all these advantages, low price is also a factor to remember.
The Bottom Line
Towards the end, we need to realize that hyperscale is not PERFECT! There could be a few hiccups with this sort of technology. Nonetheless, in the Philippines, the major enterprises are working hard to make the technology super-fast and highly adaptable to all users. The increased number of internet users require hyperscale cloud in order to smoothen their experience.
The speed and agility offered through hyperscale solutions are unimaginable. Moreover, the enterprises are also working hard to reduce carbon footprint which is again a huge positive for this technology. By 2030, the technology would achieve carbon neutrality, getting rid of carbon emissions.