KUALA LUMPUR: SNS Network Technology Bhd (SNT) is optimistic about securing more projects from the ministry of education (MoE) following the ministry's announcement of the three-phase RM1.3 billion hybrid classroom pioneer project recently.
Promoter and managing director Ko Yun Hung said the company has a range of products and services aligned with the MoE's hybrid classroom pioneer project.
"We believe the project would help accelerate the adoption of digitalisation and the deployment of information and communication technology in the public education system," he told The New Straits Times.
Ko also noted that under the 2023 Budget, the MoE received a total allocation of RM55.6 billion, of which RM430.0 million will be spent on five new schools and RM1.2 billion to be used to improve the infrastructure of dilapidated schools. This will give the company more opportunities to bid for IT-related projects moving forward.
Apart from the hybrid classrooms pioneer project, SNT is also focusing on national schools to offer its Device-as-a-Service (DaaS), a flexible technology acquisition services model.
Ko said that after almost three years of gap, technology devices such as personal computers and laptops in classrooms are outdated and need upgrading. This opens up the opportunity for the company to deploy its DaaS service offering.
It was understood that the company has been negotiating with the government to provide the DaaS service to national schools throughout Malaysia.
DaaS is a monthly subscription-based service that comprises the leasing of hardware devices such as desktops, laptops, interactive smartboards, workstations, digital signages, printers, servers and accessories.
The service includes the provision of software and hardware solutions and on-site services.
It also includes centralised enterprise IT asset management and IT repair services and management of old devices, such as the return of equipment after lease expiration, refurbishment, or disposal of old equipment.
Ko said that after Malaysia re-opens borders and transitions into endemic, all students start to go back to school.
However, there is a gap in school readiness to face and handle the current situation.
"These increase demand for upgrading school equipment, technology devices, and infrastructure in classrooms or schools.
"The need to do this has never been more urgent or clearer. Hence, we will provide solutions to aid the teaching and learning processes.
"With a flexible technology acquisition services model like DaaS, we believe we will be able to deploy more smart classrooms for our education customers," he said.
He said SNT could provide end-to-end information, communication and technology (ICT) products and solutions from third-party brands such as Dell, HP, Lenovo, Apple, or its house brand, JOI.
Elaborating further, Ko said JOI is a local Malaysian brand, and the company wants to strategically position this product as an affordable device, especially for the education sector.
"We will allocate RM1.5 million from our initial public offering (IPO) to increase the awareness of JOI products and solutions.
"We believe the technology adoption process is a journey of digitalisation. It is not an adhoc or one-time investment program. Therefore, we need to align the educational institution's objective on blending technology into pedagogy," Ko said.
SNT, which started in 1998, carries 33,633 stock-keeping units (SKUs) of third-party ICT products and 363 SKUs of JOI products.
SNT, listed on the ACE Market of Bursa Malaysia on 02 September, has earmarked RM33.4 million from the IPO for capital expenditure, of which RM30.9 million towards growing its DaaS subscription-based service and RM2.5 million to open 10 new retail stores in Klang Valley, Johor and Penang.
The company also plans to open ten new retail outlets in Malaysia, with an additional five brand-speciality stores expected to operate by September 2022, adding to the 56 currently operating.
Ko said plans to increase the scope of its DaaS offering are also gaining traction, including leasing hardware, configuring and deploying software and hardware solutions, and managing IT assets.
"DaaS is one of our main strengths and how we differentiate ourselves from the competition. We plan to utilise RM30.90 million of the IPO proceeds to support the purchase of ICT products to support this expansion.
"Since the company first deployed DaaS in January 2020, the service offering has entered into 82 subscriptions amounting to RM255.86 million, of which 75 DaaS subscriptions are still active, and seven DaaS subscriptions have been completed as of the latest practicable date (LPD)," Ko said.
Among the 75 DaaS subscriptions still active, seven subscriptions amounting to RM77.15 million with tenure ranging from 36 to 60 months are expected to commence in the fourth quarter of 2022.
"These seven subscriptions will commence once we receive the ordered devices from our suppliers.
"From the enquiries mentioned earlier, we have entered into contracts with 26 governmental bodies amounting to RM247.49 million and three public-listed companies amounting to RM0.55 million since the January 2020 rollout," Ko said.
SNT is also planning to construct a regional hub with a built-up area of 261,155 sq ft to showcase new and innovative ICT solutions for the internet of things (IoT), such as smart homes, smart retail, smart education, smart signages and smart shelving for an immersive experience for customers.
Ko said SNT's customer profile ranges from businesses, government agencies, and educational institutions to general consumers, with Pejabat Kerajaan Negeri Johor, Asurion Malaysia and the International Rescue Committee Inc.