Private and Public cloud data Centres in India- lot more to come.

Recently IBM has announced setting up of their first private cloud data centre in India. They would be building around 30,000 sq feet of  datacentre facility in outskirts of Mumbai. IBM to target BFSI, Telecom, Government, Retail, SME among other IBM's traditional on-premise set of customers who already use their hardware & in premise products currently. 

This comes at a time when Gartner had estimated the sector to be $1.3 billion from $ 423 million currently and IBM's  move comes a step ahead with commitment of putting up $1.2 billion investment when Microsoft, Amazon web services have announced their local data centres plans for India. However, Google does not looks at this seriously (or would be shortly announcing their cloud set-up plans for India) primarily because of the non-enterprise market focus being largely a consumer centric business organization.

Amazon web services and Microsoft Azure are eying the enterprise market for a long now with public cloud offerings and hosting solutions for non-core business workloads while core business applications on cloud still are at very initial stage in the BFSI and government sectors. CEO's of both these organizations  have committed local cloud data centres in India.

There are some underneath challenges including regular power supply, patchy internet connectivity and if this works well, there is much more to come from rest of the service providers as online and e-retail would (and is,  today) be the buzzword for the decade (2011-2020) and many business models would be  coming up fast and would be leveraging on an integrated solution, which works across platforms offering mobility. This becomes more interesting when traditional solution organization like SAP understands the complexity and interoperability and thus are partnering with cloud service providers like IBM (for SAP HANA, in this case).

On the services side, rest of the IT ecosystem would be focusing around services,  solutions, digital and building up SaaS or PaaS instead of becoming a cloud competitor. They would prefer to become a consumer or partner and ride on these backbones. Recent announcements from TCS and Infosys makes this strategically clear where they are signalling to remain focused on digital, Business support and core IT solutions and services.

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