by S BIRRUNTHA / pic Source: censof.com
Censof Holdings Bhd’s subsidiary, CS Cloud Sdn Bhd, has signed a joint venture (JV) agreement with Cloocus Co Ltd (Cloocus Korea) yesterday to offer cloud services in Malaysia.
The JV will lead to the formation of a new entity named Cloocus Sdn Bhd (Cloocus) which will develop and operate a ‘hyperscale’ cloud management (Microsoft Azure) in Malaysia, in addition to Microsoft’s existing business, Modern Work and Biz Apps.
Cloocus will be equally owned by CS Cloud and Cloocus Korea and have an initial injection of US$2 million or RM8.4 million.
Cloocus Korea will offer its technical expertise, resources and assets while CS Cloud will provide the local sales network, marketing and customer related activities as well as knowledge of the local culture and customer pattern behaviours.
CS Cloud CEO Kavinthraj Panneerchelvam said the JV is a significant commitments to drive the digitalisation transformation forward in Malaysia, especially in the area of cloud services.
He added the Covid-19 pandemic has accelerated the digital transformation process.
“This collaboration is anticipated to open up businesses and growth opportunities for the digital economy and at the same time as a mechanism to boost foreign investors’ confidence to invest in our local businesses.
“This will further strengthen Malaysia’s foreign direct investment,” he said during the signing ceremony of the JV in Petaling Jaya yesterday.
Kavinthraj said the collaboration is in line with the MyDigital blueprint to transform Malaysia into a digitally-driven, high-income nation and regional leader in the digital economy.
He said under the “Bersama Malaysia” initiative, Microsoft is committed to support MyDigital ambitions and to empower Malaysia’s inclusive digital economy across the public and private sectors with the establishment of a data centre region in the Greater Klang Valley.
“We are in full support of the government’s efforts to drive growth and develop the digital economy to create an innovative and technology-integrated society.
“In a nutshell, this collaboration aims not only to support the digital economy but to provide local entities with a more comprehensive cloud system,” he added.
Cloocus Korea CEO Steve Hong said Malaysia’s cloud journey can be fully accelerated with the establishment of Microsoft Azure Data Centre this year.
He said the group plans to pioneer and create a revolutionary impact on the Malaysian cloud market through its venture with Censof.
The signing ceremony was witnessed by Communications and Multimedia Minister Tan Sri Annuar Musa.
The minister hoped more strategic collaborations such as this can be further expanded, covering other business sectors to ensure technology sharing that benefits local businesses.
CS Cloud was established in 2020 and provides cloud computing platform that offer a wide range of private and hybrid cloud deployments for public and private sectors.
Its services are currently deployed by the Ministry of Transport, National Water Services Commission (SPAN), Malaysian Pineapple Industry Board, Amanah Saham Nasional Bhd (ASNB), State Secretary of Penang and Malaysian Medical Council.
Cloocus Korea was established in 2019 and offers full cloud services such as pre-consultation service, build service, managed service, big data/analytics and smart work to drive digital transformation by migrating to Microsoft Azure.
According to global research and advisory firm, Gartner Inc, the worldwide end-user spending on public cloud services is forecast to grow 18.4% in 2021 to US$304.9 billion from US$257.7 billion in 2020.
The cloud computing market in Malaysia is expected to be worth US$3.7 billion in 2024 and grow at an annual compounded growth rate of 13% from 2020.
Censof shares ended one sen higher at 30.5 sen yesterday, valuing the tech company at RM168.5 million.