There are 5 Companies in Malaysia
that provide Hosting and Cloud Services!

Malaysia is strategically situated with easy accessibility to other countries and has a robust infrastructure and economic stability. ICT has been identified as the key growth sector in the country that grows at an Annual Average Growth Rate (AAGR) of 9.0% over a period of 7 years.

Malaysia has always been a popular destination for U.S. ICT companies for their global market expansion. Some of the significant U.S. companies that are well-established in Malaysia are IBM, HP, Intel, Google, Amazon, and many others. Malaysia has a holistic digital ecosystem and a complete ICT support system for U.S. businesses.

At the same time, according to Markus Monnikendam from Lizard Global - a leading IT company from Malaysia, we can say that Following a stronger-than-expected rebound of 7.8 percent last year, the Central Bank of Malaysia projects economic growth of between 4% and 5% in 2023, which will help Malaysia avoid a recession. The recovery is widespread across industries and businesses. Since the reopening of international borders, recovery has become more established. Businesses of all sizes and in all industries saw an increase in sales as compared to the same period before the pandemic. But when it comes to sales growth, big businesses continue to dominate.

Why you should work with Malaysian IT companies

Malaysia is a great outsourcing opportunity for foreign companies but as well it hosts numerous tech giants, which educated the local digital community to implement those needed changes in business culture, and project management and prepare the skilled workforce in the IT industry. 

For this reason, companies from Malaysia are more visible and considered a regional force in the IT industry, making good competition for Indonesia, the Philippines, and even India.

In addition to this, Markus Monnikendam, the Commercial Director Global of Lizard Global mentions that In the upcoming years, Malaysia's growth will be centered on technology. Malaysia's much-awaited adoption of 5G technology is anticipated to have a substantial positive impact on the labor market because it will enhance the development of the web and generate an estimated 39,000 value-added jobs. 

What to pay attention to when working with Malaysian IT companies

Since it is expected that Malaysia will reach a digitalization level of 21% by 2025, local IT companies are struggling to invest in the training and education of young developers and designers that would bring potential growth to the Malaysian IT sector. However, following the current trends, Malaysian IT companies have a high chance to grow and provide higher-quality digital services. 

Also, the layoffs in the IT industry. Markus Monnikendam from Lizard Global states that recent layoffs at IT firms show that even the biggest businesses can make misjudgments when attempting to strike a balance between staff planning and profitability.

How reliable are Malaysian IT companies

On a regional background known for outsourcing destinations for international IT companies, Malaysian web and software agencies have a continuously improving position in terms of reliability. Both local demands for digital products and international opportunities gave Malaysian IT companies enough chances to reveal their potential and increase the trust level of clients. 

How does the Malaysian IT industry relate to the neighboring countries?

The tech evolution in the past 5 years managed to create a competitive environment in the region, where each step towards evolution is considered an advantage. Malaysian IT industry relies heavily on tech giants' investments that would manage to keep and educate young professionals. Nonetheless, the recent tax-friendly policies implemented by the Malaysian government managed to develop the IT industry and infrastructure, but which is still behind Indonesian and Indian ones.

How is the business climate to open a new IT company as a local entrepreneur In Malaysia?

According to Ezra Tan from VeecoTech Web & Ecommerce Sdn Bhd, a local IT company from Malaysia, the demand is higher than the supply, however, IT talents are minimal and companies are competing aggressively to recruit talent which is one of the main struggles for new IT companies who have to compete with bigger market players. This means that when opening an IT company in Malaysia the entrepreneur should first look for skilled professionals due to high competitiveness and only later concern about incoming projects. 

Moreover, Markus Monnikendam states that Malaysia, a developing nation, has been attempting to diversify its economy to reduce its reliance on natural resources and move towards a more knowledge-based economy. Kuala Lumpur (KL) is ranked as the third best startup ecosystem in Southeast Asia, behind Singapore and Jakarta, in Startup Genome's 2020 Global Startup Ecosystem Report. With startups in numerous industries, Malaysia has a broad startup environment. However, e-commerce, fintech, and healthcare are the most promising industries.

How are governmental institutions encourage the development of the IT sector?

Erza Tan also states that there are multiple grants that are being rolled out to encourage businesses to be more innovative and to assist small businesses to digitalize their businesses with special tax rebates as well. Some of these grants can be found at MDEC or get more information about them on HSBC

Also, according to the Commercial Director Global of Lizard Global, Markus Monnikendam, the Malaysian government created the MyDIGITAL program as part of the Malaysia Economy Digital Economy Blueprint to promote this broad-based ambition, embracing a national digital transformation. The government has goals to make Malaysia a high-income, digitally-driven nation and a regional leader in the digital economy by 2030, and this program is a part of those plans. Malaysia aims to strengthen its position as a regional data hub through the government's Cloud First plan under the MyDIGITAL framework, embracing investment in data centers.

Kuala Lumpur & Penang - The Best Cities for IT Businesses, locals say

When asked about the best two places for IT businesses in Malaysia, Erza mentioned that Kuala Lumpur would be the best city for IT companies as it has the best balance of having a bigger pool of talent there and a bigger opportunity to do business with a wide range of local and MNC companies there. The next location would be Penang. A growing hub and one of the biggest contributors to the country's revenue.

But the lists goes on, as Markus Monnikendam from Lizard Global places in the lists two other location in the top of doing IT business in Malaysia: Cyberjaya and Iskandar Puteri

• Cyberjaya -  With 144,000 innovators and creators, 400 MSC-status organizations, including multinational corporations (MNCs), and more than 40 government offices and centers, the city is currently regarded as Malaysia's technological hub. It essentially acts as the foundation for successful technology companies and businesses.
• Iskandar Puteri - It is now a center for cutting-edge digital innovations. Iskandar NEXT, one of its initiatives, aims to create and deploy Fourth Industrial Revolution (4IR) technological ecosystems. The Blockchain Village at Medini (BVAM) and the Drone and Robotics Zone (DRZ) Iskandar, Malaysia's first drone and robotics hub, were both made possible as a result.

Is the Malaysian talent poll IT-driven?

The short answer - yes. The long answer however has a more detailed explanation. According to Lizard Global, when local talents move employers in 2023, local talent anticipates earning an increase of 20% to 30% in pay. Less than 20% salary increases will probably make it difficult for businesses to recruit top employees. Other financial perks, such as fuel or transportation allowances, food subsidies, and flexible yearly leave, are particularly effective for attracting talent while improving the entire employee experience. However, if there is one perk that we are aware of that employees value most, it is flexible scheduling. 

 

 

This article was created together with prominent figures and professionals coming from reputable Malaysian IT Companies. Special credits: Erza Tan, Markus Monnikendam

Entrepreneurs often struggle to differentiate between cloud and hosted services, which may seem similar but differ in processes. Understanding these differences can help choose the right for your business. Pick the right home for your website involves considering technical aspects, reliability, cost, and customer support and other factors.

There are more than 330,000 web hosting providers all around the world, and this number is expected to grow as the Internet expands. Even with the fierce competition, new providers continue to enter the market.

At the same time, data reveals that approximately 60% of all corporate data is now stored in the cloud. It has also witnessed a 10% increase compared to the previous year, 2021.

Cloud Services

Cloud service­s are computing service­s provided by third-party hosts through the interne­t and on-demand. They allow customers to acce­ss and utilize remote computing re­sources effortlessly. There are three main categories of cloud: Software as a service (SaaS), Platform as a service (PaaS), Infrastructure as a service (IaaS).

Benefits of Using Cloud-Based Services

Cloud services offer several advantages that are not available with hosted solutions:

• IT Optimization: With cloud services, the provider is responsible for building and maintaining all the hardware, so your IT department doesn't have to manage servers or install and update software on individual computers. Additionally, the provider is responsible for ensuring security and resolving any problems that might come up.

• Budget-friendly approach: Cloud service­s offer a cost-efficient approach where you only pay for what you use. The­re is no need to inve­st in hardware or purchase software licences that may end up being unuse­d by your team. 

• Business system integration: To integrate various third-party cloud solutions, you can streamline workflows and enhance team collaboration and productivity. For instance integrating your cloud communications platform with a CRM. Doing so ensures employees have access to customer information before they answer incoming calls and automatically logs all calls into the CRM.

• Increase agility and scalability: Cloud services let you make changes in just a few clicks, whether you need to shift workflows, add new features and functionality, or change the number of users.

• Support AI, predictive analytics, and IoT:  With your data in the cloud, you can easily apply these advanced technologies to improve efficiency, gain new insights, and future-proof your business.

• Support remote workforces: The workforce can access cloud services anytime, anywhere, using any device, with just an internet connection and login credentials.

Hosting Services 

Hosted services, much like cloud-based solut­ions, are managed by a third-party provider and accessed through the internet. With hosted solut­ions, the provider owns and maintains physical servers in a private location rather than relying on a public cloud. This allows the service to be accessed online without the need for insta­lling hardware or software. Users typically access it through a virtual private network or remote desktop.

Benefits of Hosting Services

Hosted services offer some of the same advantages as cloud solution, including:

• Remote access and the ability to integrate with certain other cloud solutions. Because the software and hardware are maintained by the provider, there's also less for IT to manage than with traditional computing solutions (but typically more than with cloud solutions).

• Offers greater custom­ization options compared to cloud services, depending on the setup and service agree­ment. 

• Provide more control over security proto­cols, which is partic­ularly benef­icial for companies operating in highly regulated indus­tries.

To Sum Up 

Cloud services are a more cost-ef­fective option compared to hosting services. They are easier to set up, manage, and maintain. Although hosting services offer more control, they require addit­ional IT work and often come at a higher price. However, it's important to analyze your specific business requir­ements before deciding on a hosting type. At the moment Techehemoths has almost 800 Hosting & Cloud service providers. 

Take a look at their profiles and feel free to contact them, the smart filters will also help you, Moreover, you can submit your project and our team will hand-pick and send you the best matching service providers, and you will get free quotes in about 1-hour. Also, if you want to learn more about cloud and hosting services, check out our blog for addit­ional inform­ation.