Whale Cloud leads the charge in shaping the future with local digital infrastructure

Data localization is rapidly becoming the norm across the globe. Nations are increasingly insistent on keeping their data close to home, driven by a myriad of motives from protecting privacy and commercial interests to safeguarding against rising geopolitical and trade tensions.

And this isn’t a fleeting trend: data localization is here to stay. Deloitte predicts that digital sovereignty laws will continue to proliferate in the coming years, with stiff penalties looming for non-compliance or data breaches. Consequently, market intelligence firm IDC reports that three-quarters of global businesses now prioritize digital sovereignty, with regional compliance becoming increasingly resource-intensive.

Yet, this trend presents opportunities. Digital sovereignty policies generate demand for local digital infrastructure, particularly localized cloud services, also known as sovereign cloud solutions. Unlike conventional cloud services, sovereign clouds store and process sensitive data within a specific jurisdiction, prioritizing local ownership and adherence to regulatory compliance. This approach ensures that data remains within national boundaries, aligning with the growing demand for digital sovereignty. Advanced encryption measures further enhance security, but the primary focus lies on fostering local control and meeting regulatory requirements. This makes them increasingly sought-after in today's regulatory climate. According to IDC forecasts, spending on sovereign cloud solutions is expected to grow at an annual rate of 26.6% through 2027, reaching $250 billion annually by that time.

Among the frontrunners in this booming sector is tech solutions provider Whale Cloud. Over two decades, the company has established itself as a leader in digital transformation. It has gained a strong reputation for its expertise in cloud computing and data intelligence services. Now, it's assisting some of the biggest names in the industry, including Zain and China Mobile, in building localized digital ecosystems.

"Our cloud solutions flex to fit the contours of any local requirements," stated Chen Yishi, EVP of Whale Cloud International. "We're helping telecoms operators expand their service offerings by helping them build local cloud-based digital ecosystems that can support various local scenarios - from consumer service digitalization to enterprise digital transformation."

Powered by Alibaba's Apsara Stack, Whale Cloud's local cloud offerings deliver significant hardware savings and enhanced efficiency, including a 40% increase in CPU utilization and a 98% boost in business capacity, according to IT research firm Forrester. Furthermore, they maintain an impeccable record of zero security breaches.

The results speak for themselves. Whale Cloud's clients typically see returns on their investments within a mere 14 months. A shining example is Saudi telecom giant Zain, which leveraged Whale Cloud's expertise to launch Saudi Arabia's first local public cloud service - Zain Cloud. The move catapulted Zain into a competitive position in Saudi Arabia's cloud computing sector, which is estimated to be a $4 billion market. Until Zain's entry, the sector was almost exclusively dominated by global cloud providers.

The appeal of a local cloud solution to Saudi businesses is clear: Zain Cloud's expansive array of services – whether email, file sharing, or reliable backup storage services – comply with the Kingdom's data protection and cybersecurity standards.

Zain Cloud's success is evident in its growing service offering, which encompasses business communication, IoT, and even inroads into fintech services. It has brought Zain significant revenue growth, reaching up to $500,000 per month at its peak. Moreover, Zain Cloud received PCI DSS certification in 2022 to carry out secure credit card transactions, which leads to the second point. 

The benefits of sovereign clouds extend far beyond compliance. The IDC reports that while compliance was, until recently, the primary motivator for local infrastructure investments, expanding cloud use and enhanced cybersecurity are now seen as the main drivers. This evolution brings us to the fintech sector. Fintech ecosystems require high security and data protection. Add to this mix the extensive reliance on cloud technology, and you have a perfect storm.

Local clouds and fintech services create something of a feedback loop, according to Chen. "We've found that sovereign clouds and local digital financial ecosystems form a mutually reinforcing relationship. The availability of sovereign cloud solutions encourages more businesses to offer or accept digital financial services, which in turn drives demand for sovereign cloud services. One's presence encourages the other, creating a virtuous cycle of demand and supply." 

Whale Cloud's Digital Fintech is a testament to this. It offers a comprehensive fintech ecosystem capable of handling various digital financial services, including payments, microloans, wealth management, and insurance. With a reported fraud rate of 0.0000001% — yes, six zeros — the system is clearly as secure as it is versatile.

The company’s fintech solution has already had a significant impact in the market, typically in South Africa and Kazakhstan. For instance, VodaPay in South Africa, powered by Whale Cloud & Alipay+ Payment Tech, has grown into the centerpiece of Vodacom Group’s growth. It now serves 3.3 million users with 100+ mini-programs, significantly driving user activation & retention in a one-stop financial & lifestyle super app.

Similarly, in Kazakhstan, Whale Cloud empowered Kaspi Bank to enable 24/7 online payment transactions while significantly reducing the cost of hardware investment with distributed technology. It now serves 12.6 million active consumers, achieving 15% year-on-year growth.

Looking ahead, Whale Cloud isn't resting on its laurels. The company is exploring new frontiers like localized AI models that can understand local languages and regional nuances. With the demand for such local solutions growing rapidly, Chen notes, "We believe in the power of localizing Digital technology. Let's explore the potential of local digital infrastructure together and embark on a new journey into the digital ecosystem."