How Did 3 Major Chinese Internet Companies Supercharge Their Expansion Into Southeast Asia?

08 November 2017

As China’s digital companies go from strength-to-strength, seizing upon the rapidly digitised and affluent domestic market, a growing number are looking outwards, with eyes to capitalise opportunities in Southeast Asia (SEA). Tencent, Alibaba and Xiaomi are just three big name pioneers in this area, prompting other Chinese companies to follow suit.

Of the potential markets in SEA, Indonesia is both the biggest by far, as well as the fastest growing. According to a survey conducted in late 2016 by the Indonesian Internet Service Provider Association, there are now 132.7 million Internet users in the country, up from 88 million users in 2014, amounting to 51.8 percent of Indonesia's total population.

Yet when it comes to expanding digital services into markets such as Indonesia, it is crucial to choose a partner that can provide high availability and reliability. Despite the country’s attractive growth rate, Indonesia is of course a dispersed archipelago, meaning that not every data centre or telco is able to offer fast connectivity across the entire country. This risks either reducing a company’s reach or negatively impacting its connectivity speed, two unacceptable options for any company with serious plans to succeed in the market.

Yet many Chinese companies have already taken the step and are already expanding their digital services globally. To learn more, let's take a look at 3 major Chinese internet companies that have already successfully expanded into SEA by partnering with Zenlayer and Telin Singapore. (Note: Their names have been kept private at their request):


One of China’s Leading Online Game Developers

This company was in the business of developing, operating and publishing online games, to be accessed by customers worldwide. Already the company had 1.8 billion users registered worldwide and tens of millions of active users per day.

Knowing that globalisation is a major growth driver, the company set itself an ambitious target to double overseas revenue in just three years. To achieve this the company needed low latency for users’ in-county connectivity, but also stable and burstable bandwidth in the case of high traffic spikes.

This was achieved by partnering with Zenlayer & Telin Singapore, who provided regional coverage with direct reach to 160 million mobile users in Indonesia, in addition to a global backbone of network interconnection. This resulted in better than expect operational results, giving its users the ability to seamlessly play together regardless of their geographical location due to exception low latency. This also gave the company the infrastructure it needed to rapidly deploy its overseas businesses, especially in Southeast Asia.


One of China’s Largest Online Video Companies:

This company wanted to expand its services to end-users across Southeast Asia and globally, but above all else, they needed to guarantee low latency network stability, particularly with their live streaming services.

Zelayer & Telin Singapore met these needs with its world-class data centres across the region, offering fast deployment, low latency and direction connection to public clouds. As a result, the company was able to provide stable access to its users globally, creating customer satisfaction and allowing for smooth and quick business expansion across Southeast Asia and the United States.


One of China’s Leading Cloud Computing Service Providers

In this case, the cloud provider needed to lease IT infrastructure in order to expand their service in Southeast Asia. Crucially though they were under a tight budget and timeline to go live, whilst also requiring a highly flexible and customisable solution, along with special contract terms that conform to Chinese practice.

By partnering with Zenlayer, they were able to gather all their necessary resources in Southeast Asia and enable end-users to go live within just 2 weeks. This speed to market was helped by Zenlayer integrating its engineering and logistics resources to support the customer’s custom IT architecture. Zenlayer also ensured that the solution was compatible with Chinese business practices and the special terms and conditions required.

In each of these cases, Zenlayer & Telin Singapore was the ideal partner for several key reasons. Firstly, Telin Singapore’s parent company is Telkom Indonesia, the leading Indonesian telco with 70 per cent of the market share. Thanks to this partnership and their proprietary-owned, seamless submarine cables connecting Indonesia, Singapore and the rest of the world, Telin can provide companies with the lowest latency connectivity across the entire archipelago of Indonesia.

Secondly, both Zenlayer & Telin Singapore offers the flexibility to clients to grow and scale their infrastructure in line with their needs, helping them control initial costs, whilst also ensuring the capability for rapid growth when needed. This is made possible by software defined networking, meaning that the provision of power, bandwidth and rack space is automated, offering flexibility unlike other providers.

Thirdly, having already worked with major Chinese digital companies, Zenlayer & Telin Singapore understand the contract terms required to conform with Chinese business practices. The integrated solutions of colocation, network and edge computing services from both companies will continue to support many Chinese enterprises seeking to expand to Southeast Asia and beyond.

“Southeast Asia is one of the most important region for Chinese enterprises seeking to expand globally. Our partnership will continue to help enterprises expand digitally to Indonesia through world-class colocation and connectivity solutions.” Said Joe Zhu, Founder and CEO of Zenlayer.

“We are committed to give our utmost effort in supporting Zenlayer’s customers in their expansion journey.” said Daniel Then, COO of Telin Singapore.  “We look forward to meeting some of the fastest growing Chinese internet companies at GITC Beijing this November. It’ll be a good opportunity to understand their challenges so that we can anticipate the different needs and expectations.”

Taking these points together, both Zenlayer & Telin Singapore have the combined capability to provide companies with the lowest latency connectivity across all of Indonesia. By also offering exceptional scalability, reliability and flexibility to meet the specific requirements of Chinese companies, makes Zenlayer & Telin Singapore the ideal partner for Chinese companies looking to expand their digital products and services into Indonesia and beyond.

To meet Zenlayer & Telin Singapore at GITC Beijing 2017 on 23 November 2017, please click here.

This article was originally published on CIO Asia.


By Richard Pain
This article is sponsored by Telin Singapore



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