Malaysian economy to gain $10bn from digital transformation by 2021
A new study, undertaken in partnership by the International Data Corporation (IDC) and Microsoft, has revealed that digital transformation could contribute over $10bn to Malaysia’s GDP by 2021, increasing the economic growth rate by 0.6% annually.
The survey constitutes of 1,560 key business decision makers from mid-to-large sized organisations across 15 regional economies, with 100 of these respondents being situated in Malaysia.
“Malaysia is clearly on the digital transformation fast track,” said K Raman, Microsoft Malaysia’s Managing Director. “Within the next four years, we expect to see nearly 45 per cent of Malaysia’s GDP to be derived from digital products and services.”
The study revealed that around 85% of organisations in Malaysia are in the midst of their digital transformation journey, whilst only 7% can be considered to be digital leaders, outlining that significant transformation investment is still to come across these organisations.
The report highlighted five key benefits of digital transformation – productivity improvements, higher profit margins, cost reduction, increased revenue, and improved customer advocacy.
Further, on average, leaders experience twice the benefits compared to those who are yet to complete their transformation, with the IDC claiming that organisations will invest heavily in order to obtain these benefits and remain competitive.
“To remain competitive, organisations must establish new metrics, realign organisation structures, and re-architect their technology platform,” said Asia/Pacific digital transformation practice lead research director Daniel-Zoe Jimenez.
Fastly's CDN Reportedly to Blame for Global Internet Outage
A huge outage has brought down a number of major websites around the world. Among those affected are gov.uk, Hulu, PayPal, Vimeo, and news outlets such as CNN, The Guardian, The New York Times, BBC, and Financial Times.
It is thought a glitch at Fastly ─ a popular CDN provider ─ is causing the worldwide issue. Fastly has confirmed it’s facing an outage on its status website but fails to specify a reason for the fault ─ only that the problem isn’t limited to a single data centre and, instead, is a “global CDN disruption” that is potentially affecting the company’s global network.
“We’re currently investigating potential impact to performance with our CDN services,” the firm said.
What is Fastly?
Fastly is a content delivery network (CDN) company that helps users view digital content more quickly. The company also provides security, video delivery, and so-called edge computing services. They use strategically distributed, highly performant POPs to help move data and applications closer to users and deliver up-to-date content quickly.
The firm has been proving increasingly popular among leading media websites. After going public on the New York Stock Exchange in 2019, shares rose exponentially in price, but after today’s outages, Fastly’s value has taken a sharp 5.21% fall and are currently trading at US$48.06.
What are CDNs?
Content delivery networks (CDNs) are a web of small computers, or servers, that link together to collaborate as a single computer. CDNs improve the performance of internet-connected devices by placing these servers as close as possible to the people using those devices in different locations, creating hundreds of points of presence, otherwise known as POPs.
They help minimise delays in loading web page content by reducing the physical distance between the server and the user. This helps users around the world view the same high-quality content without slow loading times.
Without a CDN, content origin servers must respond to every single end-user request. This results in significant traffic to the origin and subsequent load, thereby increasing the chances for origin failure if the traffic spikes are exceedingly high or if the load is persistent.
The Risk of CDNs
Over time, developers have attempted to protect users from the dangers of overreliance through the implementation of load balancing, DDoS (Denial of Service) protection, web application firewalls, and a myriad of other security features.
Clearly, by the state of today’s major website outage, these measures aren’t enough. Evidently, CDNs present a risk factor that is widely underestimated ─ which needs to be rectified with haste. Content delivery networks have become a key part of the global infrastructure, and so it’s imperative that organisations start to figure out risk mitigation strategies to protect companies reliant on the interconnected service from further disruption and disarray.