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Singapore Telecommunication Limited’s Group Enterprise Business: Deepsea Cables and Cybersecurity

Singapore Telecommunications Limited (SGX: Z74) is a global technology firm with a presence in Asia, Australia, Africa and the United States.

The company, which is more popularly known as Singtel, organises its business into three main segments: Group Consumer, Group Enterprise and Group Digital Life. The Group Enterprise segment contributed almost 40% of Singtel’s sales for the fiscal year ended 31 March 2017 (FY2017).

Singtel’s FY2017 annual report included an interview with Bill Chang, the executive leading the charge at the Group Enterprise business. Here are are some highlights:

Worldwide coverage

Singtel’s enterprise business extends beyond the shores of the Lion City. On this point, the telco reported:

“We expanded our global coverage to 370 points of presence in 325 cities across the world through a partnership with our regional associate, Airtel.”

Singtel is also investing in submarine cables that connect Singapore, Jakarta and two Australian cities, Sydney and Perth:

“We are also leading a consortium to build a new 9,000-kilometre INDIGO  submarine cable (formerly known as APX-West) linking Singapore, Jakarta  (Indonesia), and Perth and Sydney (Australia).”

Singtel believes that the cable will support the growing demand in bandwidth-intensive applications.  

Into the cloud

Enterprise software is also moving to the cloud. Singapore reported:

“The demand for cloud services is steadily growing as enterprises seek to transform their business processes and models for the speed, agility and efficiency that they need in today’s digital economy.”

In FY2017, Singtel added a suite of hybrid cloud solutions (termed DC connect) to provide customers with the option of public clouds, and private clouds. The latter improves security, a subject of our next topic.   

Cybersecurity

Singtel is making a significant push in the cybersecurity space. As the enterprise world moves online, Chang believes that it is in the best interest of companies to find ways to protect their data:

“Almost every day, the media uncovers a new massive data breach or cyber security incident. Most cyber attacks involve cross-border criminal activities and can take place anytime.

So it’s really a question of when a cyber breach will occur, not if.”

Chang believes that most companies do not have the resources to manage a 24/7 cyber-security defence. Singtel can support here. He added:

“The good news is, they can tap on the resources and capabilities of credible managed security services providers (MSSPs) that are global, have highly trained cybersecurity professionals and offer real-time intelligence on cyber threats.”

Singtel’s subsidiary, Trustwave, reported that the number of companies partnering MSSPs had risen to 33% in 2017.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn't own shares in any company mentioned.