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As Demand for Network Infrastructure Services in Asia Pacific Grows, Hong Kong Solidifies Itself as Key Hub
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Growing demand for IaaS creates opportunities for niche and mainstream network infrastructure providers in Hong Kong.

After Amazon Web Services launched their new data centre in Hong Kongthis April, all the major players of the network infrastructure industry arenow present in the city. Several niche service providers - such as Heficed - are also gaining theirfooting in the Asia Pacific region due to the demand for more flexible andcustom network infrastructure solutions.

Theglobal market of Infrastructure as a Service (IaaS), valued at $15.20 billionin 2016, is expected to develop to $182.27 billion by 2025 at an annual growthrate of 28.2%. Thanks to such a healthy growth percentage, it is no surprisethat certain cities are establishing themselves as prime locations for IaaScompanies to expand within a given region - Hong Kong being an example of sucha city in the Asia Pacific.

Eventhough the behemoths of the tech world dominate both the Asian and the globalnetwork infrastructure markets, a constant need for more personal, flexible,and customizable solutions creates niches for smaller providers to thrive in.  

Heficed,one of the market leaders offering IP address, dedicated server and cloudsolutions, serves as an example of this trend. As the company launched its HongKong dedicated server location this month, Heficed’s CEO Vincentas Griniuscommented on the reasons behind the new server location:

“Thedecision of adding Hong Kong as one of our server locations was made tostrengthen our positions in the Asia Pacific region. The growing demand fordedicated servers and IP address services creates various opportunities forcompanies like Heficed that offer custom and flexible network engineeringsolutions.” 

Asglobal and Asia Pacific network infrastructure markets are steadily growing,specific locations are at the forefront of this growth. New laws passed byChina are also influencing the unprecedented location growth of Hong Kong as atop location.

“Aset of laws enacted by the Chinese government in 2017 required that non-Chinesecompanies operating in the country would store their data locally, and thisworked as an extra catalyst for the above-mentioned market growth,” addedVincentas Grinius. 

Whilethe Chinese businesses are using Hong Kong as a point of departure forinternational expansion, the non-Chinese companies are attracted to developingtheir infrastructure for the Chinese market without having to set up theirphysical infrastructure in mainland China. 

Thestate of the global, regional and Chinese IaaS markets suggests that serviceproviders of various scale will continue to see Hong Kong as a top serverlocation for developing their business in the APAC region.

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