PLDT Primes PH as Newest Data Center Hub in Asia

Wazzup Pilipinas!?


Emerging data center market poses potential to be next big economic driver


The global pandemic has been a catalyst for digital transformation as there was a steep rise in the usage of consumer applications from social media to video streaming, gaming, e-commerce, online learning, and telehealth, among others. The pandemic has also pushed the enterprise and public sector over the technology tipping point by accelerating their cloud adoption by increasingly migrating workloads to the cloud and massively using collaboration platforms supporting work from home arrangements.



Speaking earlier this year at Asia Pacific Regional Internet Conference on Operational Technologies (APRICOT) 2021, Jeff Mendoza, Asia Pacific Regional Head of PLDT Enterprise said, “The digital transformation dictated by the pandemic among the enterprise and consumer sectors have pushed the hyperscalers in the cloud and content provider space to step on the gas with their data center deployment plans across relevant countries. The goal is to optimize subscriber experience through data server localization while enhancing network resilience in growth markets, including the Philippines.”



Digital Philippines at a Glance



The digital profile of the Philippines has motivated these hyperscalers to build their digital infrastructure within the archipelago. As these big techs strive to reign in the intensified battle of eyeballs or subscribers, the population and the digital economy of a country are critical considerations in crafting their data center expansion road map.



According to We Are Social’s Digital 2020, the Philippines is home to the second-largest eyeballs within the Southeast Asia with a population of 109M. It has one of the youngest median age of 25.8 years old versus the average age within the region of 31.8, pointing to a sizable tech-savvy population which has stronger digital appetite and adoption to technology.



The nation also takes pride in having one of the highest mobile penetration rates in the region at 138%. The Philippines has 74M internet users with netizens spending 10.5 hours online which is the longest across the globe.



The Philippines has been dubbed as the social media capital of the world when it comes to hours spent in social media while it ranks as 6th in the list of countries with the most Facebook users. E-commerce sales grew by USD3.6B in 2020 at a phenomenal growth rate of 43%, with projections spiraling to USD12B in 2025.



From a Cloud Service Revenue perspective, Global Data has reported that the Philippines is anticipating a steep rise in cloud service revenues up to USD2.4B by 2024. This is due to the increase in cloud spending in the Enterprise segment and the government’s Cloud First Policy which encourages and pushes the agencies to hasten their cloud adoption strategies.



The 5G Curve Fueling Data Center Demand



The country has also been cited by the GSMA, a global mobile industry organization for mobile network operators worldwide, as an early adopter of 5G, alongside China, Singapore, and Hongkong.



Smart, the wireless subsidiary of PLDT, has launched its 5G services in key locations in the Philippines. 5G brings about denser and faster streams of data as it is driving the need to bring more efficient compute and storage power closer to the point of connectivity and the end-user. Hence, fueling a stronger demand for edge data centers.



The Philippines as an Emerging Data Center Market



The challenges confronted by major data center hubs serving Southeast Asia, like Singapore and Hong Kong, come at a time when the demand for such facilities in the region is growing. In Hong Kong, geopolitical risks out of the imposition of China’s National Security Law has caused hyperscalers in the West to rethink their strategy of building or expanding their server farms in the country. In Singapore, the government has issued a moratorium to freeze data center construction amid high demand in response to sustainability concerns. Landmass shortage was also cited as another point of consideration.



“Hyperscalers are in need of options to serve the fast growing demand within region. This is the time when the emerging data center markets such as the Philippines, is anticipated to take advantage of this window of opportunity,” Mendoza added.



According to Structure Research, a research firm niched in the data center internet and cloud space, the Philippines is one of the emerging DC markets, having a high growth rate alongside Malaysia and Thailand.



Cushman & Wakefield, a reputed global commercial real estate services firm whose technology advisory group is also deeply connected into the data center ecosystem, has cited the Philippines’ DC Market CAGR of 14.2 % versus the Southeast Asia’s growth average of 12.9% until 2024. It has been noted that SEA is the fastest growing region for co-location data centres in a span of 5 years, underpinned by the rapid pace of digitalization and surge in demand for cloud based services.



UBS sees the Philippines as an underserved market with tremendous opportunity, with strong demand from domestic and international operators. This is attributed to data localization and the demand for lower latency by the consumer and enterprise sectors.



Robust Submarine Cable Infrastructure



At present, there are nine (9) existing submarine cables landing in the Philippines, with seven (7) more international cable systems upcoming. These resilient subsea cables are complemented by six (6) diverse Cable Landing Stations strategically located within the archipelago while more stations are already anticipated to be built in the next three years.



Moreover, the Philippines has over 600,000 kilometers of fiber optic cables spread across the islands to date with PLDT owning 478,000 kilometers of the said fiber network. PLDT also has the lion's share of submarine cable capacities terminating in the Philippines.



Hyperscalers are building new subsea cable systems landing in the Philippines, which highlights the importance of the country in the digital infrastructure roadmap of these tech giants.



Greening the Power Grid



Touted as one of the early renewables leaders in the region, with a sustainable energy mix of 24%, the Philippines strives to push for more green sources of power thru the Department of Energy’s Renewable Power Standards circular.



The government’s sustainability campaign anticipates renewable power to generate 35% of the country’s electricity by 2030. This national program is aligned with the sustainability initiatives of the hyperscalers via their respective commitments to renewable energy utilization across their operations.



PLDT has been implementing sustainability initiatives for its data center facilities that will make the most efficient approach to energy usage. For instance, its data center in Clark, Pampanga built its own solar energy source with an EIFS or Exterior Insulation Finishing System which reduces heat penetration into the building.



New Destination for Hyperscalers



Possessing a burgeoning digital economy, robust domestic and international infrastructure in place, a progressive renewable power mix, and data centers at par with the technologically developed countries, the Philippines is an ideal destination to support the hyperscale data center requirements of the cloud and content providers.



“The Philippines is indeed a strong player in the emerging market space for globally certified data centers while it thrives on value creation within the digital economy. We expect in-country DC rollouts of global technology players to accelerate,” Mendoza concluded.



The country’s major data centers are primarily operated by PLDT through its ICT arm ePLDT Inc. The group currently owns a network of 10 globally certified VITRO data center facilities strategically located across the country, with a total capacity of 72MW and over 9,000 racks, designed to support the transformation and fortify the resiliency of enterprises. Since network is as essential as data center reliability, all VITRO data center facilities are designed to be carrier-neutral, allowing other telcos both foreign and local to provide network connections based on customer preference.



VITRO data center also hosts two of the country’s major internet exchanges and serves as the global gateway of the enterprise across different sectors that require colocation, cloud hosting, disaster recovery, managed servers, security and network services—making it the preferred colocation site for hyperscalers.



For more information on PLDT Enterprise and its services, visit www.pldtenterprise.com.





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Bringing opportunities to indigenous communities

Wazzup Pilipinas!?

The municipality of Impasugong is a first-class municipality in Bukidnon. Known as the province, tribal capital, the town is home to different indigenous groups, primarily Higaonons, and other tribes like Talaandig and Umayamnon.

While indigenous culture flourish in the town, poverty persists. With farming as their main source of livelihood, most IPs lack access to post-harvest equipment and alternative markets for their produce.

To improve their socio-economic conditions, the Peace and Equity Foundation (PEF) entered a partnership with local social enterprise, Kauyagan Savers Multipurpose Cooperative, (KSMPC) in 2019 which will increase the income of 250 smallholder farmers in three upland barangays in the municipality.

Impasugong Crops Development Project


The Impasugong Crops Development project involves providing capital and transfer of technology to Kauyagan and the IP farmers for production and consolidation of coffee, corn, and abaca fibers. It also aims to equip the farmers with knowledge on production and farm management, marketing skills, post-harvest handling and financial literacy.

“We partnered with Kauyagan and connected them to PhilFIDA and other line agencies for technology transfer and other support that they may be able to provide,” PEF Senior Area Officer Nikki Along said.

The collaboration has since paid off: the Department of Environment and Natural Resources (DENR) also donated three (3) units of stripping machines, one (1) decorticating machine, improved hand-stripping devices, and a livelihood center/ buying station for the Abaca. PhilFIDA meanwhile trained and accredited Kauyagan as Abaca consolidators.




Impact to social enterprise and households

In the first year of its implementation, the income sharing scheme enabled farmers to receive at least Php .20 to Php .50 per kilo of corn and Php 2 to Php 3 per kilo of abaca fiber they harvest, depending on the quality.

According to Imelda Esteban, manager of Kauyagan, the project provided a big leap in the development of the lives of the farmers.

“Noon ang mga farmers, magbebenta sa mga big traders. Sa partnership namin with PEF, nabigyan ng pagkakataon ang mga farmers na maibenta ang kanilang mga tanim sa aming cooperative and we are providing them with more competitive prices,” she said.

Imelda said that farmers were also able to enjoy access to facilities from the government and other organizations for them to enhance their productivity.

The crops development project is now in its second year, with more capacity development and increase in premiums for IP farmers underway for them.

The Peace and Equity Foundation aspires to drive positive change in poor Filipino household communities by investing in social enterprises that will provide them with viable livelihood and better access to basic services. We work with partners who share this vision by developing models and best practices that will steer social enterprises to scale up. Founded in October 2001, our Foundation is the steward of an endowment fund and registered as a non-stock, non-profit organization based in Quezon City, Philippines.

PLDT Enterprise, Cloudstaff cement decade-long partnership with expanded productivity services

Wazzup Pilipinas!?

PLDT Enterprise—the B2B arm of the largest integrated telecommunications company in the Philippines PLDT—and Cloudstaff Modern Workforce—one of the Philippine’s leading business outsourcing providers—continue to strengthen their ongoing partnership with the signing of a new three year service extension agreement to further drive innovation and enhance business productivity.

 

The latest deal fortifies the longstanding partnership between Cloudstaff and PLDT Enterprise as the outsourcing leader extended its decade long association with Google Workspace, renewing licenses for its 3000+ staff spread across the Philippines.

 

“We would like to express our utmost gratitude to Cloudstaff Modern Workforce for their continued trust in us after all these years. Likewise, we at PLDT Enterprise convey our unbreakable commitment in helping their business grow and become even more successful with our end-to-end digital services,” said Jovy Hernandez, ePLDT President & CEO and SVP & Head for PLDT and Smart Enterprise Business Groups.

Cloudstaff’s long association with the PLDT Group has organically evolved throughout the partnership, originally starting as a telecom provider, before transforming into a fully-fledged solutions partner.

PLDT has previously provided Cloudstaff internet connectivity through PLDT ClarkTel and wireless mobile plans via its wireless arm Smart Communications. Today, PLDT Enterprise, now supplies Cloudstaff with a series of world class digital solutions including Smart Bizload and Messaging Suite, Google Workspace, and Smart 5G Rocket WiFi through its ICT arm ePLDT to further boost Cloudstaff’s operations and productivity.

Cloudstaff CEO, Lloyd Ernst, says the secret to the partnership's ongoing success and longevity stems from the agile and adaptable way in which both organizations approach their operations.

“The Cloudstaff - PLDT relationship is a powerful combination,” Ernst said. “For us to succeed in a competitive and ever changing global market, we need a partner that is both reliable and adaptable, and never have we seen these qualities shine through more than in the way PLDT has provided a way forward throughout the global COVID-19 pandemic.”

“For over ten years now, Cloudstaff has been striving to change the way the world approaches outsourcing through the use of technology driven solutions and Google and PLDT have been there with us every step of the way,” Ernst added.

Likewise, Chito Franco, PLDT ClarkTel President, also expressed the PLDT Group’s enthusiasm for providing Cloudstaff with the leading digital solutions needed for conducting business on the global stage.

"For the last ten years, we at the PLDT Group have continuously strived to understand the growing requirements of Cloudstaff for us to provide the most suitable services that will help them reach more customers with their next-generation outsourcing platform. And today, we fortify that commitment especially as we help digitally transform its business," said Franco.

For Cloudstaff’s Head Network and Security engineer, Arvin Cubacub, the extension of the partnership means accelerating Cloudstaff’s rapid growth. “Continuing to have PLDT onboard providing our Google Workspace requirements over the course of the next three years is a key milestone for us. It gives us the confidence we need to grow and expand our services into new global markets, and provides our customers with one of the world’s most versatile and secure platforms, fully backed by PLDT’s unwavering support," he concluded.

For more information, please visit pldtenterprise.com or cloudstaff.com.

 

About PLDT Enterprise

PLDT Enterprise is the preferred digital services partner of the B2B market. As the corporate business unit of the PLDT Group, its vision is to make a positive impact on every single business by simplifying the complex for various industries. With its wide range of fixed line, wireless, and ICT services—which run on the Philippines’ most extensive fiber optic backbone, cellular network, and data center footprint—it continues to deliver solutions that create real value for every customer.

About Cloudstaff

Cloudstaff is a premium outsourcing provider that helps businesses to grow and achieve greater sustainability by providing high quality staff, world class facilities, and removing the burdens of recruitment, HR, and payroll.

With over ten years of operation, Cloudstaff employs over 3000 staff across eight premium office locations in the Philippines, and boasts a 98.1% staff retention rate. Investing heavily in technology and innovation, Cloudstaff is a market leader, providing next generation outsourcing solutions to a global client base.