Telstra has announced it is shifting focus towards Asia's emerging cloud and managed network services market, through a process of reorganisation and redirected capital.
Australia's largest telecom company has merged its Global and Reach division with its Enterprise and Government arm to create a Global Enterprise and Services unit. The new division has also absorbed Telstra IP Management and its Network Application Services business, as it gears up to capitalise in Asia.
Brendan Riley, Telstra group executive global enterprise and services, said the move is borne out of forecasts showing that China will become the largest economy by 2017 and that GDP across the region will double within a decade.
The shift is also in keeping with the rise of global enterprise, with Telstra seeing more and more of its users seek opportunities further afield.
"All of the customers I speak to are global in some way, whether it's their customer base or their supply chain, they're leveraging a technology solution from a technology partner from some part of the world to drive their business," Riley explained.
Telstra's chief financial officer, Andrew Penn, said the increased investment – with hundreds of millions of dollars expected to be set aside for Asia – will see it build upon its already significant infrastructure in the region.
The carrier's main focus for its global push would be its Australian customers operating offshore, and multinational companies operating out of economic hubs of Singapore, Hong Kong and other parts South East Asia.
Telstra chief executive David Thodey was keen to stress, however, that its IP core network is already "equal to if not better than anyone else in the region", but it will make further investments to increase its ability to provide connectivity and value-added enterprise services such as cloud computing to multinational and corporate clients in the region.