Baidu expands cloud services in Singapore to catch up with rivals Alibaba, Tencent

Online search giant aims to support expansion initiatives of Chinese companies in Southeast Asia

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Singapore has the biggest enterprise information technology market in Southeast Asia, according to Forrester Research. Photo: Handout

Published: 7:30pm, 19 Aug 2019Updated: 10:58pm, 19 Aug 2019

Internet search giant Baidu has launched cloud computing services in Singapore, as the company moves to catch up with Chinese rivals Alibaba Group Holding and Tencent Holdings in Southeast Asia’s biggest information technology market.

Nasdaq-listed Baidu will focus on supporting mainland Chinese companies expanding in the region, as well as meeting the requirements of domestic firms for “high-performing, secured and reliable” cloud services, the company said in a statement on Monday.

It is offering a full stack of cloud services for a range of industries – including gaming, finance and internet services – in Singapore, which was forecast by Forrester Research to spend US$30 billion on enterprise technology in 2019 and 2020 to lead all economies in Southeast Asia.

The huge demand for cloud computing services in the city state, according to Baidu, is driven by its prime geographic location in Asia and its role as one of the world’s largest international financial centres.

Cloud computing enables companies to buy, sell, lease or distribute over the internet a range of software and other digital resources as an on-demand service, just like electricity from a power grid. These resources are managed inside data centres.

Baidu’s foray into Singapore’s cloud services market comes as Southeast Asia has become one of the focal points for global investors, start-ups and Chinese technology conglomerates, led by Alibaba and Tencent, which have been expanding outside their home market.