SET-listed IT product distributor Synnex (Thailand) is investing 100 million baht this year in its business development, in a bid to become a total business solution provider by 2027.
The move also aims to capitalise on Thailand's cloud market, which is projected to be worth 160 billion baht by 2029.
The investment is to support Amazon Web Services (AWS) Thailand's cloud business, its own technology solution showcase, and the establishment of a warehouse.
Thailand's cloud market is just beginning. The company sees the cloud computing market as an opportunity because cloud spending in Thailand accounts for only 12% of total IT spending versus 34% globally, said Sutida Mongkolsuthree, chief executive of Synnex (Thailand).
Thailand's cloud market is expected to be worth US$4.6 billion, or around 160 billion baht, by 2029 from an estimated $2.1 billion (70 billion baht) in 2025, representing a compound annual growth rate (CAGR) of 20%.
This growth of the local cloud business is higher than the estimated 18% CAGR of the global market.
Cloud market growth has been driven by the expansion of data infrastructure, artificial intelligence (AI) computing power, cloud native applications, security governance and collaborating platforms.
Moreover, there is state investment under the Cloud First Policy in the 2024 fiscal year of around 3 billion baht, and in the 2025 fiscal year the budget is 5-10 billion baht.
The company has been appointed AWS's value added distributor. Under the partnership, Synnex will distribute AWS cloud solutions and provide end-to-end after-sales services, offering customers in Thailand a streamlined path to adopt and optimise cloud technologies.
Under the partnership, Synnex is investing over 10 million baht this year to support AWS's cloud business by setting up a dedicated team for the cloud.
The company will promote the hardware and software of 70 brands in total, together with a cloud service on a cross-selling basis, and will provide financial support to partners.
The company and the partners will also promote the products of independent software vendors through its marketplace platform.
Cloud service will be one of the company's growth businesses in its enterprise and IT commercial revenue stream this year due to its superior margins, said Ms Sutida.
The company foresees opportunities in six key sectors for potential use cases of AWS cloud, such as manufacturing, healthcare, education and government.
By this August, Synnex will open technology showcase areas for the six sectors to demonstrate use cases for its partners.
The company wants revenue from the enterprise and IT commercial segment to enjoy double-digit growth in 2025, said Ms Sutida.
Synnex projects revenue growth of 10% this year amid a challenging economy and the global trade war, she noted.
"This year we will reach a new high again, thanks to AI-driven cloud businesses, refreshment of new AI ready PCs and smartphones," said Ms Sutida.
Last year the company posted 42.1 billion baht in revenue, representing 15% growth.
Vatsun Thirapatarapong, country manager of AWS Thailand, added that expansion of the partner network is among five key business directions this year to accelerate growth of the company's Thailand data centre region, which became available in early January this year.
Synnex has an extensive partnership network nationwide, particularly upcountry, which would help AWS tap some large enterprises, small and medium-sized enterprises and startups.
AWS Thailand has been scaling its business through partnerships, which accounted for 18% of its total sales in 2020 before rising to 77% in 2024.
Mr Vatsun said Thai organisations will spend $2.1 billion on cloud services this year as they are enthusiastic about using AI to increase productivity.
"This year, we will see businesses invest in generative AI for real business outcomes rather than proof of concept. Cloud will be driven by AI to accelerate digital transformation," Mr Vatsun added.
