Globe Telecom eyes growth in cloud computing, mobile broadband

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By Alexander Villafania


MAKATI CITY, METRO MANILA – Amid growing competition in the telecommunications business, Globe Telecom is aiming to augment its revenues with new corporate services related to cloud computing.

Globe recently introduced its first infrastructure-as-a-service (IaaS) platform wherein corporations would essentially outsource their information technology and telecommunications infrastructure.

The IaaS is targeted at businesses looking to start their own IT infrastructure at a lower cost. Large companies with existing services can also utilize an IaaS platform by having their networks connect to Globe’s IaaS service and have it managed externally.

Such a platform reduces the need for building or maintaining one’s own IT networks as well as having to install software for each computer within the company. This reduces the capital and operational cost of building and maintenance.

Cloud computing allows applications to be run from a single server and be accessed remotely through a web browser by another desktop or laptop computer.

Some of the specific applications in the case of IaaS are Internet servers, data centers, and software distribution. These are housed within the physical infrastructure  of the service provider, which also lessens the cost of operating a separate IT department for companies.

In an interview, Francisco Claravall, Globe Telecom Business Products and Services Head,  said that while cloud computing is already making growing its market abroad the service still in its “nascent” form in the Philippines.

“The focus would still be domestic due to the huge potential of cloud computing among businesses in the Philippines,” Claravall said.

He predicts cloud-based services will allow more businesses, especially small-to-medium scale enterprises (SMEs), to grow. The cost to entry of an SME to cloud services is relatively lower, which allows them to select the services that would serve their purposes.

Globe is also eyeing growth in mobile broadband services, citing the growing adoption of Internet-enabled mobile devices such as laptops, tablet PCs and smartphones.

Globe Telecom CEO Ernest Cu noted that the telecommunications industry continues to be competitive, particularly in mobile broadband services.

‘Bucket’ pricing packages for SMS and voice, though, remain the company’s major drivers to target more users who could be offered with value added services, said Cu.

Globe reported revenues of P33 billion in the first six months of this year, up from P30.7 billion last year.

The company reported strongest growth in  mobile services posting P26.2 billion in the first semester of 2011. It reported 1.1 million new subscriptions in the second quarter of 2011, putting its total of subscribers to 28.4 million.

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