The cloud market including Al in Vietnam is still incipient and small; however, with the current trend of digital transformation, it is full of potential and will be dominated by local companies, ICTNews reported.
| Vietnamese service providers will prevail in domestic cloud market. |
Advantages of Vietnamese enterprises
A study by Viettel IDC showed that revenue from Vietnam’s Artificial Intelligence (Al) market may reach US$300 million by 2025 with annual growth rate of 25-27%. Specifically, revenue from Al Software Application and Al Software Platform could grow 33-35% per year, totaling US$120 million by 2025. Revenue from Business Analytics Insights, Data Engineering and Al Enablement could grow 21-24% annually, totaling US$160-180 million.
The local cloud computing market is witnessing a competition among three groups of suppliers including foreign enterprises, large-scale domestic enterprises, and small businesses and startups.
CEO of VNG Cloud Vu Minh Tri said that foreign enterprises have advantages of experiences in providing the services. Meanwhile, starting from server leasing, domestic enterprises have moved to master cloud computing technology. He believed the number of the Vietnamese providers will increase rapidly, then soon dominate the domestic cloud computing market.
Using cloud infrastructure provided by domestic enterprises will be economical because the number of servers per capita is big and the transmission line is cheaper. Thus, domestic cloud computing providers have advantage of price over foreign ones, and they should tap into it, Tri recommended.
Another competitive edge of domestic enterprises is human resources, who can provide immediate support for clients, especially small-medium enterprises in saving expenses on IT staff.
Dominating the market
| After Covid-19, local businesses have begun to move massively to the cloud. |
According to experts, digital transformation is a mandatory trend for businesses, and early deployment of AI and cloud computing will bring great advantages. After Covid-19, local businesses have begun to move massively to cloud services.
When it comes to the cloud, data is collected and stored more efficiently, giving businesses a better understanding of their customers. However, the migrating to the cloud is not easy when many businesses are not fully aware of its advantage and lack resources. Therefore, local service providers will play a huge role to meet the demand of the businesses.
For cloud service providers in Vietnam, it is important to offer easy-to-use services to customers. The service providers also need to focus on specific solutions for businesses, in particular, finding the answers to the current problems such as reducing costs, Tri added.
