Cloud solutions spell multiple benefits for Cambodia’s businesses
Source：KHMER TIMES
From：KHMER TIMES
Update Time：2024/09/03
The Royal Government of Cambodia has been emphasizing the importance of digitalisation for every sphere of the industry. IT experts from Cambodia and Singapore told Khmer Times on Wednesday about the importance of going digital for businesses to stay ahead in today’s competitive age.
Digital transformation is crucial for businesses to stay competitive, enhance efficiency, and improve customer experiences, said Sergei Zubkov, General Manager of Daun Penh Data Center. “It helps companies to adapt to changing market dynamics and reduce operational costs. Switching from desktop applications hosted on in-premise servers to software as a service hosted in the cloud is one of the aspects of digital transformation,” he explained.
“A digital future will tremendously improve the lives of ordinary Cambodia citizens in many ways,” said James Lee, Managing Director, A2000 Solutions Pte Ltd. Living standards will improve as digital solutions make daily tasks like buying necessities, calling for transport, booking a plane ticket or even managing bill payments easier, he added.
According to Lee, businesses adopting cloud systems can extract many benefits, favouring small companies who are not tech-savvy, nor have the means to build their own cloud infrastructure.
However, initiating a cloud system in Cambodia presents multiple challenges. To begin with, limited or inconsistent internet connectivity can hinder cloud adoption. High-speed internet is crucial for effective cloud services.
Not many companies are on track to digital transformation yet. Some still stick to the traditional “old-style” approach. For example, they are investing in in-premise accounting systems rather than saving costs and going with lighter and much more flexible cloud accounting and cloud ERP services.
The availability of a reliable local data centre is limited in Cambodia. Hosting data abroad has concerns about latency and data sovereignty. High initial costs for setting up cloud infrastructure will deter new entrants and that could potentially reduce the traction locally. Without large volume and scale, continuous operational costs, such as subscription fees for cloud services, can be a concern.
“Another challenge for hosting in-country cloud services is limited data centre infrastructure,” said Zubkov. “A lack of robust data centres was a holder for cloud service deployment.”
Cloud services, support and software solutions may not be available in the Khmer language or fit local regulatory compliances, making it difficult for local businesses to use and manage these services. Cambodia’s regulatory framework for data protection is still developing, which can create uncertainties for businesses regarding data security.
Globally there is a shortage of skilled IT professionals familiar with cloud technologies. Cambodia will be no exception. This can make it difficult to implement and manage cloud solutions effectively, said Lee.
Although cloud accounting and ERP systems are targeting SME businesses, they ultimately will benefit the Cambodian economy and Cambodian citizens. Generally, cloud services have much lower costs compared to investments in solid in-house ERP deployments.
Many businesses might not be fully aware of the benefits and potential of cloud computing, leading to reluctance to adopt it. Resistance to change, adapting to new technologies and fear of uncertainties (like security, reliability of provider and privacy of data) can slow down cloud adoption. Building trust with local and international cloud service providers is essential.
Addressing these challenges, requires a coordinated effort from the government, private sector and educational institutions to build the necessary infrastructure, regulatory frameworks and skilled workforce to support cloud adoption.