High time for SNS’ tech growth with DaaS, JOI
SNS Network Technology Bhd (SNS) is optimistic of its outlook given the continuous growth in demand for ICT products supported by rising economic activities and the strengthening of our existing customer base together with expansion of market share.
Managing director Ko Yun Hung in an interview with The Borneo Post said the group continues to see steady growth and demand from a momentum that built up in recent years when remote work and learning became essential due to the Covid-19 lockdowns.
“On the other hand, we are also seeing more demand for our device-as-a-service (DaaS) subscription-based IT service, and we believe this is due to customers being more strategic in how they spend when times are more uncertain,” he said.
“DaaS allows them to avoid large capital expenditures for bulk purchases of ICT products as it provides customers with the flexibility to adjust their usage according to their latest business and operational needs.”
DaaS is a subscription-based IT service that forms part of our ICT services and solutions. The service is typically offered on a monthly subscription basis where ICT products and services are bundled together according to customer needs and preferences.
Items for subscription include devices and hardware, software and ICT services. SNS manages product configuration, deployment and commissioning, to the provision of ICT services including value-added ICT services and solutions to ICT asset management and support and maintenance services.
As at June 2022, the group has entered into 82 DaaS subscriptions with a total subscription value of RM255.86 million.
“This is an important area of growth for us and is capital intensive, Ko highlighted. “We have allocated RM30.90 million to purchase ICT products to service new subscriptions secured and for future subscriptions.
“The DaaS business enable us to retain our customers with a higher chance of renewal of services while giving us recurring revenue as the service ranges up to five years.”
SNS was recently listed on the ACE Market of Bursa Securities on September 2, 2022. The firm’s capex related to the business expansion has a 36-month timeline.
It hase allocated the IPO proceeds for expansion of DaaS subscription-based service (RM30.9 million); set-up of 10 retail stores (RM2.5 million); construction of PJ regional hub (RM18.0 million) and; marketing activities for its in house brand, JOI (RM1.5 million).
“JOI is our household range of products and services that we first launched in 2014 with the JOI 8 tablet. We have a total of 363 products under JOI that are offered alongside our third-party brand partners’ products,” Ko explained.
“In May 2016, we launched the JOI smart classroom framework in line with the digital transformation in Malaysia’s educational sector as outlined in the Malaysia Education Blueprint 2013-2025.
“This solution integrates and combines a broad range of features to support effective teaching and learning, as well as enhance interaction and collaboration in educational institutions.
“JOI products and services do not compete with our thirdparty brand partners as it is aimed at customers seeking more affordable options across the product range of desktops, laptops, tablets, software components and other peripherals. JOI devices are equipped with Intel processors and Microsoft software as the main supporting software.
“We have allocated RM1.5 million from the IPO proceeds for JOI marketing activities. We have successfully secured 59 projects with educational institutions ranging from kindergartens to universities for the JOI smart classroom framework, of which 11 of these projects were secured jointly with our dealers.”