Avnet Collaborates with MDeC and IBM to Drive Cloud-Based Enterprise Software Development in Malaysia

Avnet Technology Solutions, the global IT solutions distribution leader and an operating group of Avnet, Inc. (NYSE: AVT), announced it is working with IBM and the Multimedia Development Corporation (MDeC) on the MSC Malaysia Cloud Initiatives (MMCI) – ‘Cloud On-boarding Programme.

Under the MSC Malaysia Cloud Computing Enablement Initiative, independent software vendors (ISVs) and system integrators (SIs) will be able use IBM Cloud through the pay-as-you-use utility model known as ‘Software-as-a-Services’ (SaaS). The ISVs and SIs will get access to SoftLayer infrastructure from IBM to develop enterprise software.

Norhizam Abdul Kadir, Vice President of Infotech Division of MDeC, said, “Collaboration with Avnet Technology Solutions in Malaysia is in line with the MSC Malaysia Cloud Initiative, which was introduced in 2011 to enable and drive the cloud computing ecosystem.

“To date, this Initiative has seen 288 independent software vendors signed up, more than 20 types of cloud applications developed by local IT players and more than 5,088 SMEs subscribed to cloud services.

“In 2014, the MSC Malaysia Cloud Initiative contributed to an increase of 32% in total ISVs revenue growth, and we look forward to the fruition of this cooperation and synergy between MDeC and Avnet to further grow the cloud computing ecosystem.”

According to Chiew Yue Lam, general manager of Avnet Technology Solutions in Malaysia, the collaboration with MDeC is timely for the market as there is now a more crucial need to encourage the development of more local enterprise software applications, solutions and services.

Chiew says that SMEs were the early adopters of cloud–based solutions in Malaysia because they were less adhered to complex large enterprise requirements and compliance. However, there is now exponential interest from large enterprises to adopt cloud computing for their business operations as well.

“The perception of C-level executives toward cloud computing has evolved significantly as larger organizations are looking to harness the cloud computing benefits.

“This is creating a demand for cloud-based enterprise software, applications and solutions. This is why we need more Malaysian ISVs and SI partners to develop such software and solution services that can specifically meet the complex business requirements of larger enterprises,” says Chiew.

Besides business process-based solutions such as project management and email communication, large enterprises are starting to leverage the cloud to support core ERP processes, customer relationship management and human capital management.

Chiew adds, “Avnet Malaysia aims to enable 200 local IT partners with solutions, skills and resources to capitalize on this growing cloud market. We will begin with training of 20 existing partners by 2015, including the existing IBM solutions partners, and other local SIs and ISVs.”

IBM Malaysia managing director Paul Moung says, “IBM Cloud offers a complete portfolio of infrastructure services, including bare metal servers, virtual servers, storage and networking.

“It can help the ISVs and SI partners achieve significant economies of scale in areas like costing on infrastructure maintenance, IT systems’ utilization rates and enablement of multitenant application models.”

The SoftLayer platform from IBM offers a single private network connecting all data centers and network points of presence. Additionally, it is the only cloud Infrastructure-as a Service (IaaS) provider that offers unlimited private network traffic between all its facilities to significantly reduce users’ bandwidth costs.

Finance Incentives to Lower Barrier to Cloud Entry

To further encourage the participation of its IT partners in this MSC Malaysia Cloud Initiatives (MMCI) – ‘Cloud On-boarding Programme,’ Avnet Malaysia will offer financial incentive to lower the barriers of entry to the cloud.

Subsidized by MDeC, Avnet Malaysia offers hosting credits for the development of enterprise-level SaaS solutions on IBM’s SoftLayer infrastructure.

Chiew shares, “Avnet Malaysia’s ISVs and SI partners can claim up to RM15,000 of the total subscription fee to IBM SoftLayer’s platform, with the condition that all applicants must be MSC status companies.”

In addition, any ISVs established less than five years with an annual revenue lower than RM33 million (~USD $10 million) are eligible for the IBM Global Entrepreneurs Program, which will offer them complimentary access to all IBM software worth not more than RM 660,000 (~USD $200,000) at no cost.

“With this Avnet-MDeC-IBM partnership, ISVs and SI partners can rely on the knowledge and expertise of a well-established Avnet team in Malaysia to heighten their cloud offerings for faster uptake of cloud-based solutions amongst local enterprises,” ends Chiew.

The collaboration and incentives under MSC Malaysia Cloud Initiative are well aligned to position Malaysia as a global hub for cloud and content services, promote MSC Malaysia software and services locally and abroad, as well as equip SMEs with cloud capabilities to accelerate the nation’s development into a vibrant and innovative digital economy.

About Multimedia Development Corporation (MDeC), MSC Malaysia and Digital Malaysia

The Multimedia Development Corporation (MDeC) was incorporated in 1996 to strategically advise the Malaysian Government on legislation, policies and standards for ICT and multimedia operations as well as to oversee the development of the Malaysian Multimedia Super Corridor (now MSC Malaysia), the platform to nurture the growth of Malaysian Small and Medium Enterprises (SMEs) in the IT industry whilst attracting participation from global ICT companies to invest in and develop cutting edge digital and creative solutions in Malaysia.

In 2011, MDeC’s mandate was broadened by the Prime Minister to include driving Malaysia’s transition towards a developed digital economy by 2020 through Digital Malaysia. In 2012, Digital Malaysia was official unveiled as the nation’s transformational programme to achieve this aim. Founded on three strategic thrusts, Digital Malaysia will create an ecosystem that promotes the pervasive use of ICT in all aspects of the economy, connect communities globally and enable them to interact in real time, to increase the country’s Gross National Income, enhance business productivity and improv