US Data firm set up Asia-Pac HQ in Singapore

Singapore was ranked the third safest place in Asia to site data centres, according to a Data Centre Risk Index report released in June. The ease of doing business here is one reason for Singapore's rank.

The American tech firm IO will sharply increase its investment here as it moves to make Singapore the centre of its operations across the Asia-Pacific - and eventually the world.

Chief executive George Slessman said on Wednesday that it is ready to spend up to S$70 million (US$56 million) more in developing its base here.

That expenditure will come on top of the S$30 million (US$24 million) it has already put into a new data centre that it officially opened in Ang Mo Kio on Wednesday.

Slessman said the new investment will include setting up more equipment and expanding its workforce at the data centre.

"We've invested more than S$30 million in the Ang Mo Kio facility. Depending on customer demand, we will be extending the investment to S$100 million (US$80 million) in the next few years," he said.

Data centres, which are used for computer systems serving sectors such as banks and financial institutions, telecommunications or for storage, are becoming increasing important as computing power and use grow.

Singapore hosts about half of the total data centre capacity in Southeast Asia, said Jayson Goh, the Economic Development Board's executive director of infocomms and media Wednesday.

"Singapore tends to focus on the premium data centre market segment, which includes hosting mission-critical data and cloud computing," added Goh, who hoped that the country's role in the industry will expand.

The new Singapore facility, IO's first outside the United States, is aiding that strategy.

It will serve as the firm's Asia-Pacific regional office and later evolve into its international headquarters, noted Slessman.

Its first customer is global financial services firm Goldman Sachs.

IO's unique advantage is that it builds both the software and hardware needed for a data centre. Its software can capture 6,000 to 7,000 pieces of information, from power consumption per computer to how the computers are used.

Customers can then monitor the information and tweak it to get better operational efficiency.

IO's data centre is built in a modular fashion. Each module is a container-like box where all the computers and related equipment like power and networking are built in.

This means IO does not need a purpose-built data centre, which needs raised floors to run networking and power cables.

In fact, it did not have to retrofit its Ang Mo Kio facility, a former Seagate manufacturing plant, as it had cement floors and a high ceiling.

It was ready for operations after IO added a cooling system that could be plugged into the data centre modules. Adil Attlassy, IO's executive leader of global operations, said eight modules have been installed in the 140,000 square feet facility.

Only half the space is being used. The rest will be gradually opened when demand increases, allowing a further 122 modules.

About 30 people, including its technical support team, work in Singapore.

Clement Teo, senior analyst at research firm Forrester, said IO's crown jewel is its software: "The software is the differentiating factor. It can drill down to get thousands of data points which customers can use to run their data centres more efficiently."

Singapore was ranked the third safest place in Asia to site data centres, according to a Data Centre Risk Index report released in June. The ease of doing business here is one reason for Singapore's rank.

Earlier this year, Equinix announced plans to build its third data centre here while Keppel Data Centres Holding is also developing its third centre in Singapore.

The Infocomm Development Authority of Singapore is working with the EDB and JTC Corporation to develop a data centre park, cementing Singapore's position as an economic and infocomm hub.

The park is expected to be operational by early 2016.

Source: Straits Times 19th September 2013

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US Data firm set up Asia-Pac HQ in Singapore

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