Internet access and network solutions provider Internet Initiative Japan and Indonesian communications services company Biznet Networks are embarking on a joint venture that will provide cloud services in Indonesia.
IIJ has been strengthening its cloud businesses beyond its local Japanese market since 2011, having established cloud services in the U.S., Europe, China, and Singapore. In entering Indonesia, IIJ decided to launch its cloud service in cooperation with Biznet, an influential local partner (known locally as PT. Supra Primatama Nusantara).
The joint venture between IIJ and Biznet is set to begin its operations in mid-December after completing the procedures required by the relevant authorities. The joint venture’s trade name, headquarters, and managing director have not yet been made public.
By 2018, public cloud services spending is expected to reach more than $127 billion, a growth rate of 22.8 percent over the $56.6 billion in spending this year. Since Indonesia is at an early stage of cloud adoption, there’s potential to gain a large share of the emerging market.
The venture is backed by $6 million in capital, with 60 percent from Biznet and 40 percent from IIJ. The companies anticipate the venture to create annual revenue equivalent to around $10 million after three years of the launch of the services.
In recent years, many web hosting providers have brought their cloud services to Indonesia through local partners. For instance, Lintas Media Danawa partnered with cloud platform provider Hexagrid to launch an Indonesian on-demand public cloud called Cozy. And hosting provider Verio partnered with Indonesian telco PT Aplikanusa Lintasarta to provide Verio’s global hosting solutions to its small and medium business customers.
The partnership between IIJ and Biznet will involve building new cloud service infrastructure in Indonesia to provide public and private cloud services to local companies. While IIJ will handle the cloud technologies and operational support, it will help that Biznet already has a reputation in the Indonesian market, and Biznet will conduct day-to-day operations and handle the venture’s domestic business.