Frost & Sullivan outlines investment opportunities in Indonesia ICT sector

26 July 2018 Consultancy.asia

In a white-paper for the UK’s Foreign Office with respect to investment prospects, the research and strategy consultancy Frost & Sullivan has conducted an analysis of the ICT market of Indonesia, finding exponential growth in eCommerce and digital services.

The UK’s Prosperity Fund, under the auspices of the Foreign Office, seeks to promote sustainable economic growth and prosperity in recipient countries while creating inbound and outbound investment opportunities for international and UK companies.

With a focus on identified countries with significant untapped potential, the Foreign Office recently commissioned the global research and strategy consultancy Frost & Sullivan to undertake a review of the Indonesian information and communications market (ICT).

Indonesia ICT forecast for cyber, digital and telecomsIn the resultant white-paper, Frost & Sullivan (which has twelve offices across Asia including a bureau in Jakarta), has reported a local ICT sector which last year underwent year-on-year growth of 9.8 percent, climbing from a worth of 37.3 billion in 2016 to $37.3 billion for 2017.

The digital services market meanwhile is predicted to grow at a CAGR of ~38 percent to 2020, jumping from $1.88 billion to $9.53 billion, while over the same period the cybersecurity sector of Indonesia is projected to rise from $573.5 million to 750.5 million at a CAGR of ~5.5 percent.ICT Readiness Index, IndonesiaCurrently, Indonesia ranks 73rd out of 139 countries on the overall ICT Readiness index (according to the World Economic Forum data used in the report), and while the nation has slightly slipped to in many of the subindices between 2014 and 2016 – such as ICT usage (dropping nine places in the rankings) and infrastructure (down 20 spots), the key areas of improvement were in political and regulatory environment and economic climate.

In addition, as the report notes, Indonesia is undoubtedly primed for market growth, with the world’s fourth largest population – of which 40 percent are under 40 years of age – and an expected rise to over 90 million middle-class citizens by 2020. Tellingly, while the number of internet users has grown from 89 million in 2015 to ~105 million last year, there is still approximately 60 percent of the population yet to venture online, and urbanisation is expected to increase from roughly 55 percent to 65 percent of the population by 2025.Indonesia digital services market forecast, 2017–2022Those who are online are increasingly engaged, with Indonesia boasting the third fastest growing eCommerce sector in the ASEAN region – behind Vietnam and the Philippines – and it's projected to increase from ~$2 billion in 2016 to ~$4.6 billion in 2022. This growth, the consulting firm says, will likely “prompt a shift towards more cloud-based eCommerce web hosting and website applications”, with the country’s digital services, and particularly the cloud market, set for rapid growth in turn.

In terms of investment prospects for digital service providers, the report concludes; “The opportunity for UK companies to expand their footprint exists in Indonesia… UK companies can serve the market by deploying data services and upselling data centre and cloud services as part of their ICT offerings to Indonesian customers. Furthermore, UK companies can leverage Big Data analytics by using cloud services and introducing this capability to Indonesian enterprises.”

The growth strategy consultancy does however temper immediate expectations for potential investors with a cautionary note; “Digital services are still relatively new in Indonesia, and there is a shortage of skilled people with IT expertise in data analytics, cloud management and cybersecurity. Cloud security remains a concern for many companies in Indonesia. Enterprises have reason to be concerned about security risks, which include unauthorized access to applications and data leaks, particularly in a shared cloud environment.”

UK's Bluedog holds cybersecurity event with Level 11 Tech in Manila

12 March 2019 Consultancy.asia

UK-based cybersecurity company Bluedog and local consultancy Level 11 Tech have hosted an event in Manila to showcase Bluedog’s Sentinel; a cost-effective security solution for SMEs in the Philippines.

Cybersecurity company Bluedog Security Monitoring of the UK and its Philippines-based consulting partner Level 11 Tech have joined together to host an event showcasing Bluedog’s Sentinel, a plug and play Internal Network Security Monitoring solution for MSPs (managed service providers) and the SME (small and medium enterprises) market – designed to offer levels of network protection typically only affordable to larger corporations.

The event – held at the The Picasso Boutique Hotel in Manila’s business district Makati – brought together members of the media and value added resellers (VARs) for a series of presentations from Level 11 Tech and Bluedog leaders on cyber and data security, the local SME landscape, and threats to smaller businesses, which with lower budgets and lesser expertise are commonly the most susceptible to sophisticated attacks.

Level 11 Tech’s Chief Technology Adviser Robert Williams opened the event with an overview of the cybersecurity and data privacy realm, focusing on the different types of cyber-attacks and data breaches occurring globally and their ramifications for the SME sector. Described as a game-changer, Williams urged organisations both big and small to take a holistic ‘People, Process & Tools’ approach to combating cyber threats and reducing operational risks.

Highlighting the heightened vulnerability of SMEs to security breaches, Williams in his presentation outlined the effects of malware and phishing attacks on smaller enterprises, which he noted were increasingly being targeted and were rarely prepared for either the attack or the cost of recovering from such an incident. According to Williams, the most common attack types against SMEs remain ransomware, phishing and malware – which in more than 90 percent of cases are still delivered via e-mail.Level11Tech - Malware & PhishingStatistics provided by Level 11 Tech show that 78 percent of people claim to know the risks associated with unknown links yet still commonly click on them, while for businesses, 67 percent hit with ransomware permanently lost all or part of their corporate data. Exacerbating the issue, the highly interconnected ASEAN region is according to a report from A.T. Kearney last year significantly lagging behind on cyber-defense, with the Philippines well below the global average on spending at just 0.04 percent of GDP.

The presentation from Williams was followed by talks from Bluedog’s Chief Technology Officer Tim Thurlings, providing an in-depth and comprehensive overview of the cybersecurity threat landscape, and from Bluedog Channel Partner Colin Darbyshire, who presented updated statistics of SMEs in the Philippines and the growing opportunities VARs have when it comes to offering the Sentinel solution.

“With cyber-attacks against smaller businesses on the increase and budgets stretched, SMEs are vulnerable to cyber criminals in increasingly large numbers,” concluded Bluedog CEO Paul Lomax, adding that attackers are now focusing their attention on these less suspecting and more easily penetrated victims. The Sentinel solution, says the firm, can provide powerful and affordable monitoring to quickly detect, diagnose, and resolve network issues that could lead to devastating attacks.

Following the success of the presentation, the first for Bluedog in the Philippines, its organisers have said that another event is now in the works for the coming months, with the aim of providing further insights and highlighting new perspectives on best industry practices as implemented in the UK – a goal which Level 11 Tech states is in line with its mission to raise awareness and pave the way for more local cybersecurity experts in the Philippines.

Based in the capital, Level 11 Tech – a division of Alexander Karl Group Corporation – in addition to its Cybersecurity expertise provides Enterprise Architecture, Business Process Management, Data Privacy and Digital Transformation consulting and implementation services to Filipino clients in the Government, Telecom, ICT and Enterprise sectors, with a focus on complex and innovative technology solutions.