AIS, Oracle Alloy unveil Thailand’s first hyperscale cloud service

Advanced Info Service (AIS) announced a partnership with Oracle Alloy to introduce Thailand’s first locally owned and operated hyperscale cloud infrastructure services. This significant collaboration aims to enhance the country’s cloud and artificial intelligence (AI) landscape, currently valued at around 100 billion baht.

The newly formed partnership, confirmed to involve a joint investment of up to 8 billion baht by 2030, anticipates launching its services in the first quarter of 2025. This development promises to play a crucial role in modernising IT infrastructure and fostering innovation across organisations in Thailand.

Somchai Lertsutiwong, Chief Executive of AIS, emphasised the transformative impact of cloud technology on the country’s IT landscape. According to the GlobalData ICT Market Forecast Thailand report from January 2024, the cloud technology market in Thailand is projected to grow by 23% annually through 2027.

Oracle Alloy, through this partnership, empowers AIS to become a locally owned and operated hyperscale cloud provider. Somchai highlighted that AIS Cloud, backed by Oracle Alloy, would offer over 100 Oracle cloud infrastructure services, addressing crucial regulatory and data sovereignty needs.

“AIS Cloud will meet data residency and sovereignty requirements in line with Thailand’s Personal Data Protection (PDPA) Act and the Cybersecurity Act.”

Somchai also noted the unique position of AIS Cloud as the sole hyperscale cloud provider in Thailand, ensuring business resilience with in-country disaster recovery capabilities.

Regulatory requirements

Currently, AIS operates more than 10 data centres nationwide. The AIS Cloud, powered by Oracle Alloy, will be deployed in two of these data centres, guaranteeing customers a local cloud solution that meets regulatory requirements. This setup ensures that customer information remains within Thailand, addressing data sovereignty concerns across various industries.

Oracle Alloy will provide comprehensive support, including hardware, software, and training for enterprise customers, government bodies, and special industries operating under specific regulations. This support aligns with Thailand’s Cloud First policy, aiding mission-critical applications, IT modernisation, and AI initiatives.

Somchai remarked that this partnership would accelerate AIS’s transition from a telecom operator to a tech company while unlocking the substantial potential for digital transformation and AI innovation across all sectors.

“This strategic collaboration will not only elevate AIS but also drive digital transformation and AI innovation across Thailand.”

Garrett Ilg, Executive Vice-President and General Manager for Japan and Asia-Pacific at Oracle, described Thailand as a strategic market for Oracle. He asserted that the Oracle Alloy collaboration with AIS would be a game changer for the industry in the country.

“With AIS’s local expertise, we can deliver tailored customer experiences, addressing specific needs related to workload locations and cloud operations.”

Annual growth

Daphne Chung, research director for cloud services and software research at IDC Asia/Pacific, noted that sovereign cloud spending is expected to increase at a 31.5% compound annual growth rate in Asia-Pacific, excluding Japan (APEJ). The APEJ Cloud Survey 2023 indicated that 19% of organisations in the region plan to increase their spending on sovereign cloud shortly.

The partnership between AIS and Oracle Alloy stands as a pivotal development in Thailand’s technological advancement, promising enhanced cloud services, regulatory compliance, and significant growth in the local IT infrastructure market, reported Bangkok Post