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Malaysia-based Hitachi Sunway poised to become major regional data centre player

AvantiKumar | Aug. 4, 2014
A new data centre in Klang Valley as well as two major acquisitions has instantly bolstered Hitachi Sunway's data centre solutions and service portfolio, said Group Director & CEO Cheah Kok Hoong.

Hitachi Sunway data centre modified 

Photo - (From left) Cheah Kok Hoong, Group CEO and Director, Hitachi Sunway Information Systems; Satoshi Okuide, Vice-President and Executive Officer Director, Hitachi Systems Ltd; Tan Sri Dr. Jeffrey Cheah, Founder and Chairman, Sunway Berhad; Dr. Naoya Takahashi, President and CEO, Hitachi Systems Ltd; Dato' Chew Chee Kin, President, Sunway Berhad; Sarena Cheah, Executive Director, Sunway Berhad; and Masato Saito, Chairman and Director, Hitachi Sunway Information Systems.


Malaysia-headquartered IT services provider Hitachi Sunway Information Systems [Hitachi Sunway] has entered the regional data centre market with the acquisition of two Malaysian companies - Free Net Business Solutions [FREENET] and Powerware Systems [PWS] - and the announcement of a new data centre at the Pinnacle Sunway in Klang Valley.

During the ribbon-cutting ceremony at the Pinnacle Sunway, Hitachi Sunway Information Systems' group director and chief executive officer, Cheah Kok Hoong, said, "Hitachi Sunway has fully acquired FREENET and thirty percent (30 percent) shares of PWS, in our latest corporate investment to leverage the strong demands for regional data centre services as the Cloud Computing trend experiences continued growth throughout Southeast Asia's ICT markets."

Cheah said FREENET has more than 15 years experience in system integration, backup and data recovery, data centre facility, managed services, network services and IT outsourcing businesses, while Powerware Systems, which has presence in Malaysia and Middle East, has focused on Data Centre Design and Build in the last 10 years.

He said Hitachi Sunway already has a data centre business, under its Infrastructure Managed Services (IMS) division, offering data centre services, data management, IT outsourcing managed service, data centre design and building solutions.

"However, these two strategic acquisitions are timely as Hitachi Sunway is completing the building of its latest 5000 sq. ft data centre, located at The Pinnacle Sunway by October 2014," said Cheah.

The acquisitions give Hitachi Sunway two additional ISO-certified Tier III compliant data centres within the country located at Cyberjaya and Kuala Lumpur; and to a total of 18,500 sq. ft, while its third data centre at The Pinnacle Sunway is under construction, he said.

Top player strategy

Cheah said Hitachi Sunway has set its sight on becoming "a top player in the region with comprehensive data centre services, Cloud infrastructures and solutions to support multinational customers, especially Japanese-oriented businesses look to expand their businesses in SEA via ICT support partnership with Hitachi Sunway."

The company's latest business direction was also in tune with the Malaysian government's drive towards greater developments for the country to be Southeast Asia's preferred data centre hub, he added.

"Invest KL and Multimedia Development Corporation (MDeC) is in close support of Hitachi Sunway's acquisitions and revealing of our latest data centre at The Pinnacle Sunway, as this is also exemplary of the kind of strategic foreign investments that is sought after to boost Malaysia's ICT sector," Cheah said.

He said Malaysia's data centre market grew by more than RM500 million (US$155.88 million) in revenue last year, up by 25 percent. "At the same time, the Cloud Computing trend has taken off as an increasing number of conglomerates and small and medium enterprise [SME] businesses are adopting this ICT delivery model to manage data and deploy technology."

 Major growth plans

"As Cloud computing is a major growth strategy for Hitachi Sunway, it is only logical for us to invest to be a stronger player as data centres are the fundamental infrastructure and ICT architectural support for Cloud to be delivered," he said.

Cheah said the data centre at The Pinnacle Sunway, MSC Cybercentre, was certified with Green Building Index. "Hitachi Sunway's newest data centre will be able to handle the demands of more from local corporations that want to outsource their IT and call centre operations, yet at the same time prefer their data to be housed closer to them."

Hitachi Sunway has also officially relocated its headquarters to The Pinnacle Sunway recently where is designed with highest building efficiency optimised for MSC-status companies' operations, he said.

Hitachi Sunway chairman/director Masato Saito confirmed that the company has been growing steadily with a significant increase in revenue of more than 50 percent in the past 12 months.

"The remarkable business growth is a testament of the conducive collaboration between Hitachi Systems and Sunway Technology," said Saito. "Especially the IMS portfolio, which is one of the three core business divisions of Hitachi Sunway, has recorded more than 100 percent growth in revenue. This will continue to be fuelled by the force of the new acquisitions."


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