GoTo Group, Indonesia’s largest digital ecosystem, has successfully migrated its On-Demand Services systems to Tencent Cloud’s local data center in Jakarta, marking one of Southeast Asia’s most complex cloud relocations to date.

The migration spanned over 1,000 microservices and was executed under multi-cloud and cross-border constraints. Remarkably, it was completed in just under five hours, beating the original timeline.

To accommodate the migration, Tencent Cloud added a third availability zone to its Jakarta region. This upgrade, now fully operational, strengthens local data processing capacity and supports national cloud adoption efforts.

In addition to moving its systems, GoTo used the migration to re-architect parts of its platform. The resulting upgrades improve scalability and set the stage for future growth. Both companies emphasized their shared focus on enabling Indonesia’s data sovereignty through robust, locally hosted solutions.

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🔗 Source: Tencent Cloud

🧠 Food for thought

1️⃣ Indonesia’s data sovereignty laws are reshaping cloud provider strategies

Indonesia’s regulatory environment has become a key driver for hyperscalers establishing local data centers, as demonstrated by Tencent Cloud’s expansion to three availability zones in Jakarta.

This shift aligns with Indonesia’s Personal Data Protection Law (PDP Law), which mandates that sensitive data must be stored and processed domestically1.

The trend extends beyond Tencent, with the country’s data center market projected to grow at a 14% CAGR from 2023 to 2028, reaching $3.98 billion by 20282.

Companies like GoTo are citing “data sovereignty commitments” as motivations for their infrastructure decisions, showing how regulatory compliance is becoming a competitive necessity rather than just a legal obligation.

Data localization has transformed from a technical constraint into a strategic consideration, with 94% of Indonesian businesses planning to increase their cloud investments in 20233.

2️⃣ Complex cloud migrations represent the new technological standard in Southeast Asia

GoTo’s migration of over 1,000 microservices exemplifies the increasing scale and complexity of cloud transitions in the region, requiring eight months of preparation despite being completed in under five hours.

This migration pattern parallels other Southeast Asian success stories, such as Ninja Van’s transition to Google Cloud, which achieved 24/7 business uptime without service interruption during the migration process4.

The technical sophistication required for these projects, involving multiple database types, replication technologies, and cross-border coordination, highlights why migrations have become strategic differentiators rather than merely operational changes.

Beyond technical execution, these migrations often drive architectural improvements. GoTo took the opportunity to “re-architect parts of its foundation platform,” a common approach that transforms infrastructure challenges into opportunities for innovation.

The GoTo-Tencent migration represents a regional trend where businesses are leveraging migrations not just for cost savings but as catalysts for broader digital transformation initiatives.

3️⃣ Southeast Asia’s cloud market has become a major battleground for global providers

Indonesia’s cloud hosting sector is experiencing significant growth, with an annual increase of approximately 48% and projections to reach $2.83 billion by 20253.

This growth has intensified competition among cloud providers, with Tencent Cloud reporting “sustained double-digit growth over the past three years” as it expands to serve more than 10,000 enterprises globally.

The rush to establish local infrastructure is evident as international providers like Tencent, Microsoft, and Google compete with regional players to capture market share in Indonesia’s rapidly evolving digital economy5.

Jakarta has emerged as the epicenter of this development, now hosting over 90% of Indonesia’s operational data center capacity5.

This competitive environment is driving innovation in cloud offerings, with providers increasingly emphasizing specialized services like AI capabilities, Kubernetes implementations, and database management tools to differentiate themselves in a crowded marketplace.

Recent Tencent developments

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