Gamuda takes up 20% stake in Google Cloud partner, teams up with DNeX to provide Google Cloud services

• The purchase of Cloud Space could lead the way for Gamuda to tap into the RM36 billion technology services market, with core offerings in cloud and artificial

KUALA LUMPUR (Dec 10): Gamuda Bhd (KL:GAMUDA) is acquiring a 20% stake in Cloud Space Sdn Bhd, a Google Cloud premier partner, for RM18 million. It is also teaming up with Dagang NeXchange Bhd (KL:DNEX) to provide on-premises Google Cloud services to Malaysian businesses and government agencies.

The purchase of Cloud Space could lead the way for Gamuda to tap into the RM36 billion technology services market, with core offerings in cloud and artificial intelligence (AI) capabilities, said the construction outfit in a statement on Tuesday.

Cloud Space is a Malaysian start-up that builds, sells and services solutions for Google Cloud, Google Workspace, Chrome Enterprise, and Google for Education. The company also provides Software-as-a-Service (SaaS), AI and cybersecurity-related solutions.

Gamuda’s chief digital officer John Lim Ji Xiong said the group and Cloud Space have the right synergies to drive digital innovation.

Cloud Space managing director Eric Tan Chin Siong, meanwhile, said the company as a pioneer in the Google Cloud ecosystem since 2017 brings a network of established key technology partners and a robust client orderbook to the partnership with Gamuda.

“Our team of passionate and experienced experts have strong technical capabilities and commitment to help organisations drive their digital transformation and business goals,” he added.

In a separate development, Gamuda has entered into a partnership with DNeX to form a joint venture company to provide novel air-gapped Google Distributed Cloud Services (GDC Services) to Malaysia in both the public and private space.

The 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 Technologies Sdn Bhd and DNeX Solutions Sdn Bhd will hold 50% equity stakes in the JV company.

Gamuda is to provide technical expertise in AI and cloud technologies, including the preparation of financial assessments, financing and the development of business schemes required by the JV company.

Additionally, the parties will leverage the strengths of Gamuda’s existing AI Academy to promote and expand AI adoption in Malaysia.

As for DNeX, its role is to manage relationship engagements and facilitate the sharing of existing business, commercial, technical, customer base and other relevant information related to the GDC services.

According to a joint press release by Gamuda and DNex, the JV company is authorised to act as the sole provider of GDC Services targeted at the over RM11 billion market across government, including federal and state entities, as well as private entities such as financial service institutions and security-sensitive organisations.

The partnership will also involve procuring GDC hardware, expert workload sizing, providing customised AI solutions, application development, ongoing client support, data migration, and infra maintenance to clients.

“Through this joint venture, we are committed to driving meaningful digital transformation that enhances efficiency, security, and service delivery for the public sector,” said DNeX’s executive chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir Jamalullail.

“This 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,” he added.

Meanwhile, Gamuda’s John Lim said: “Partnering with DNeX represents a pivotal strategic alliance, harnessing their solid multifaceted technological prowess to enhance and enable AI and Cloud adoption in our national digital landscape.

“By leveraging our deep expertise in cloud and AI technologies and our established partnership with Google Cloud, we are uniquely positioned to accelerate transformation across the regulated sectors.

“We are bringing comprehensive capabilities in project delivery, value engineering and experience in organisational transformation. We aim to implement digital solutions and create a robust ecosystem that empowers the Malaysian government and private sector to stay at the forefront of technological innovation.”

Gamuda shares closed 23 sen or 2.5% higher at RM9.45 — a 17-year high. The group's market capitalisation stood at RM26.81 billion. Year-to-date, the stock has gained 105.9%.

DNeX, meanwhile, closed unchanged at 35.5 sen, giving it a market capitalisation of RM1.23 billion. Year-to-date, the stock has fallen 11.3%.

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