Gamuda makes major move into digital market

11 Dec 2024 | The Star

Gamuda said the acquisition allows it to tap into a RM36bil market.

Petaling Jaya: Gamuda Bhd is going big into the cloud business by investing RM18mil in a Malaysian start-up offering Google Cloud solutions and by joining hands with Dagang Nexchange Bhd (Dnex) for a sovereign cloud solution.

In a statement yesterday, Gamuda announced that it is acquiring a 20% stake of up to RM18mil in Cloud Space Sdn Bhd, which is a Google Cloud premier partner.

Gamuda said the acquisition allows it to tap into a RM36bil market with its technology services, with core offerings in cloud and artificial intelligence (AI) capabilities.

The group added that the stake will be acquired by its subsidiary, Gamuda Technologies Sdn Bhd.

Gamuda said this value added-approach will benefit existing and future projects, serving clients across the private and public sectors.

Moreover, the group said it is well-positioned to capitalise on the growing demand for advanced technological solutions, by leveraging Google Cloud’s industry-leading tools and nurturing the next generation of AI talent through the Gamuda AI Academy.

Cloud Space is a Malaysian startup that builds, sells and services solutions for Google Cloud, Google Workspace, Chrome Enterprise and Google for Education.

Moreover, the company also provides software-asa-service, AI and cybersecurity-related solutions.

Gamuda Bhd chief digital officer John Lim Ji Xiong said the group’s leadership in the engineering and construction sector has always been defined by its ability to deliver complex physical infrastructure projects through its unique blend of expertise and engineering skillsets.

“However, recognising the evolving landscape, we have strongly emphasised digital innovation, cultivating talent to design and implement tomorrow’s digital infrastructure.

“If Gamuda, a company with a long history in traditional industry, can successfully navigate this transformation, we believe others can, too. Having collaborated with Cloud Space, we believe that they have the right synergies with us to drive this vision,” he said.

Meanwhile, Gamuda also entered into a joint venture with Dnex to provide novel air-gapped Google Distributed Cloud (GDC) services to the public and private sectors in Malaysia.

This partnership was undertaken by Gamuda and Dnex’s subsidiaries, Gamuda Technologies and Dnex Solutions Sdn Bhd respectively.

The joint venture, which has an equity ratio of 50:50, is authorised to act as the sole provider of GDC services targeted at over RM11bil market across government, including federal and state entities, as well as private entities such as financial service institutions and security-sensitive organisations.

The group said GDC services is a sovereign cloud solution that offers customers the highest regulatory requirements access to Google Cloud’s leading AI and Cloud technologies in a secure, fully isolated, on-premise environment.

Gamuda-Dnex GDC services will involve procuring GDC hardware, expert workload sizing, providing customised AI solutions, application development, ongoing client support, data migration and infra maintenance to clients.

Dnex executive chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir Jamalullail said the unique solution will unlock possibilities for secure and transformative innovation, namely the use of AI and advanced analytics in delivering integrated, citizen-centric digital government services, advancing treatments for chronic health conditions and optimising energy production in hydro or solar power plants.