KUALA LUMPUR (Sept 30): Dagang NeXchange Bhd (KL:DNEX) said on Monday that it is partnering with Singapore-based Google Asia Pacific Pte Ltd to provide sovereign cloud services in the country.
DNeX signed a Google Cloud Partner Advantage commercial agreement with Google, authorising it to operate Google Distributed Cloud as a managed provider, with a focus on air-gapped configurations for organisations in Malaysia, according to the company in a filing with Bursa Malaysia.
DNeX said the agreement allows the company to resell Google’s cloud solutions, including Google Cloud Platform (Public Cloud), Google Distributed Cloud — Edge (Connected), and Google Distributed Cloud — Air-gapped (Disconnected).
The deal also provides access to other advanced Google technologies such as artificial intelligence (AI), big data, and analytics.
Additionally, this collaboration aims to expand DNeX’s information technology services by offering hosting solutions to meet the growing demand for in-country data centres and cloud infrastructure in Malaysia.
On the other hand, DNeX has entered into a three-year memorandum of understanding with Google to explore how Google Cloud’s services and products can enhance DNeX’s AI capabilities and the technology landscape in Malaysia.
This collaboration follows Google’s earlier announcement in May to invest US$2 billion (RM8.25 billion) in establishing its first data centre and Google Cloud region in Malaysia. The initiative is part of Google’s broader plan to expand its presence and technological footprint in the country.
“Organisations in Malaysia's regulated industries are eager to deliver modern digital services to their stakeholders, but are constrained by limited access to cloud services that meet strict sovereignty requirements…this unique solution will unlock possibilities for secure and transformative innovations, such as the use of AI and advanced analytics,” said DNeX executive chairman Tan Sri Syed Zainal Abdin Syed Mohamed Tahir Jamalullail in a statement.
“Moreover, we plan to integrate large language models into our key IT services offerings, such as the National Single Window for trade facilitation, iGFMAS, and EGADS, as part of efforts to empower our customers with advanced analytics and process automation.
"Through our partnership with Google Cloud, we foresee our offerings to be distinctly complementary to highly regulated institutions and government agencies, facilitating controlled deployment of cutting-edge and energy-efficient AI solutions on customers' premises ," he added.
DNeX operates in the technology, energy, and IT sectors. The technology segment is the largest contributor, accounting for 52.4% of the group’s total revenue of RM298.11 million for the second quarter ended June 30, 2024, followed by energy (30.8%) and IT (16.8%).
Shares of DNeX closed down half a sen or 1.47% at 33.5 sen on Monday, giving the company a market capitalisation of RM1.18 billion. Year to date, the counter has fallen over 16%.