In both cases what was highlighted was that Oracle provided the platform with the right capacity and capabilities for their business growth. This demonstrates the strength of Oracle’s enterprise capabilities. They are perhaps the only tech vendor that can support enterprises equally for their database, workloads, and hardware requirements. As organisations look to transform and innovate, they will benefit from the strength of these enterprise-wide capabilities that can address multiple pain points of their digital journeys.
#4 Getting Front and Centre of the Start-up Ecosystem
One of the most exciting announcements for me was Oracle’s focus on the start-up ecosystem. They make a start with a commitment to offer 100 start-ups in Singapore USD 30,000 each, in Oracle Cloud credits over the next two years. This is good news for the country’s strong start-up community. It will be good to see Oracle build further on this support so that start-ups can also benefit from Oracles’ enterprise offerings. This will be a win-win for Oracle. The companies they support could be “soonicorns” – the unicorns of tomorrow; and Oracle will get the opportunity to grow their accounts as these companies grow. Given the momentum of the data economy, these start-ups can benefit tremendously from the core differentiators that OCI can bring to their data fabric design. While this is a good start, Oracle should continue to engage with the start-up community – not just in Singapore but across Southeast Asia.
#5 Commitment to Sustainability at the Core of the Digital Futures
Another area where Oracle is aligning themselves to the future is in their commitment to sustainability. Earlier this year they pledged to power their global operations with 100% renewable energy by 2025, with goals set for clean cloud, hardware recycling, waste reduction and responsible sourcing. As Jacqueline Poh, Managing Director, EDB Singapore pointed out, sustainability can no longer be an afterthought and must form part of the core growth strategy. Oracle has aligned themselves to the SG Green Plan that aims to achieve sustainability targets under the UN’s 2030 Sustainable Development Agenda.
Cloud infrastructure is going to be pivotal in shaping the future of the Digital Economy; but the ability to keep sustainability at its core will become a key differentiator. To quote Sir David Attenborough from his speech at COP26, “In my lifetime, I’ve witnessed a terrible decline. In yours, you could and should witness a wonderful recovery”
Oracle operates in a hyper competitive world – AWS, Microsoft and Google have emerged as the major hyperscalers over the last few years. With their global expansion plans and targeted offerings to help enterprises achieve their transformation goals, Oracle is positioned well to claim a larger share of the cloud market. Their strength lies in the enterprise market, and their cloud offerings should see them firmly entrenched in that segment. I hope however, that they will keep an equal focus on their commitment to the start-up ecosystem. Most of today’s hyperscalers have been successful in building scale by deeply entrenching themselves in the core innovation ecosystem – building on the ‘possibilities’ of the future rather than just on the ‘financial returns’ today.
Analysing the current and future potential of the Southeast Asian Internet economy across its six largest markets – Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam – it has been a momentous time for online travel services, online media, ride-hailing services, eCommerce, and digital financial services to leverage digital tools.
Southeast Asia’s Internet Economy is expected to grow
Southeast Asia’s fundamental changes in consumer behaviour and engagement with mobile internet have grown demand for eCommerce and Ride-Hailing services.
eCommerce is the largest and fastest-growing sector with more than 150 million Southeast Asians engaged in online shopping, and this is indicative of the fundamental changes in the way people consume eCommerce services.
Growth of digital financial services
Currently, Southeast Asia lacks adequate financial services as out of nearly 400 million adults in the region an estimated 98 million are underbanked and 198 million are unbanked.
Commenting on the expanding Internet economy, Ecosystm Principal Advisor – Growth & Expansion, Paul Gestro said “Vietnam, Philippines, and Indonesia will be the markets that could benefit the most from the US$100 billion Internet economy. This is primarily because a large percentage of the population in these markets is unbanked. With the growth and access to some form of banking (traditional or virtual) and the ability to transact a payment, this will have a huge influence on Fintech solutions.”
Another key trend is the growth of digital payment and financial services in the region. The growth of digital financial services will make the Internet economy more wide-ranging and consumers will enjoy greater access to Digital Payments and eCommerce.
Gestro added, “Insurance, payments and investment services will add to what we do now with ride-sharing and food delivery services. We will instantly make decisions on insurance and investment products and deals backed up by seamless payment mechanisms and different forms of payment.”
While most Digital Financial Services are still nascent, Digital Payments are expected to cross US$1 trillion by 2025 and this could open investment opportunities.
“The open investment opportunities for investors in Southeast Asia’s internet economy will be investing in applications that are mobile-ready. There will be a growth in mobile transactions and services, and companies that take a mobile-first approach will be the investors’ target,” said Gestro.
The report advises governments of Southeast Asian countries to align digital financial service regulations across the region to facilitate the development of regional business models and help channel resources towards investments in world-class tech and talent.
Despite the growing Internet economy, talent constraints remain a pressing concern as the Internet economy expands. Gestro said, “programmes in schools are required to promote a digital understanding and offer clear pathways to build knowledge and skills required for an Internet economy. This also includes companies who should be offering internships and working closely with universities to make sure the courses match where talent is needed.”
The use of mobile phones and mobile applications will connect consumers to a raft of services they previously lacked, and allow business owners and leaders to reach a whole new population of customers that was previously under-served. There’s still a lot of work to be done to ensure Southeast Asia’s Internet economy reaches its potential.