This vendor-written piece has been edited by Executive Networks Media to eliminate product promotion, but readers should note it will likely favour the submitter's approach.
Digital connectivity has overcome the frictions of space and time -- but do multinational corporations (MNCs) need geographical proximity to best access markets across the globe?
According to IDC, 82 percent of U.S. companies are looking to international expansion, and half of these companies are targeting Asia Pacific . For these companies looking to access global markets, a global data centre footprint does matter, and data sovereignty and latency are two reasons why.
Data sovereignty: we have talked about this plenty and pondered whose laws govern the data in a data centre -- is it the laws of the country in which the data is located or the country where the data centre provider is based? Security concerns in mind, several governments across the globe implement rules that require the data of citizens to be kept within their country. As such, many global companies have relocated to globalise their data centre footprints, keeping their customers' data in regional data centres rather than consolidated in the companies' home countries.
Latency issues are another big reason for global companies to maintain a global data centre footprint. Timing is everything -- especially for latency-sensitive machine-to-machine and human interaction apps, geographic proximity does matter. Even companies that aren't in the business of high frequency trading can be negatively impacted by millisecond delays in communication. Increasingly, low latency is also important to the human experience, with the rise of virtual workspaces, remote control of network video, augmented reality and immersive cloud-based gaming.
In other words, for MNCs with foreign market presence, a local or regional data centre can be an important competitive advantage.
In Asia Pacific, why Singapore?
According to 451 Research, Asia Pacific is the fastest growing multi-tenant data centre market in the world. Understanding the need to globalise their data centres, most U.S. and Europe-based companies that colocate a data centre in Asia do it from a strategic hub, and Singapore is one of the best-suited Asian cities for that.
Besides its prime geographic location (a strategic connector into other key parts of Asia), Singapore has a relatively mature data centre market compared to other countries in Asia -- an ideal gateway into some of the world's fastest growing economies with underdeveloped data centre markets, such as China, India and South Korea .
The stability, structure and efficiency of the country also make it an ideal location -- ranging from the low risk of natural disasters, world-leading connectivity and one of the widest telecommunications networks in the world, positive business climate, world-class infrastructure, and low sociopolitical risk.
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