IBM is planning its first datacenter focused on providing cloud services to Indian organizations.
The datacenter in Airoli, known as the Mumbai Cloud Center, is part of its planned $1.2bn spend on increasing its global cloud delivery capability.
In the third quarter of 2013, IBM’s revenue from cloud computing services exceeded $1bn for the first time. In the last five years, IBM has witnessed a 70% growth in revenue from cloud services.
Vamsicharan Mudiam, country manager cloud Solutions South Asia at IBM, said India had been a key market for the company.
According to IT research firm Zinnov, India already hosts the highest number of SMEs in the world, at 50 million. Further, India has over 1,500 co-operative banks, most of which use IT infrastructure for their services. Considering the other complementary strengths, IBM has been trying to create a new market.
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According to Lingaru Sawkar, the director of Integrated Technology Services/Global Technology Services, IBM South Asia/India: “With the new datacenter, IBM will be able to tap into BFSI, telecom and government sectors, which haven't been able to move to cloud in a big way due to regulatory requirements.”
Gartner recently predicted that India’s public cloud service spending will grow from INR 2,550 crore to INR 7,800 crore between 2013 and 2017.
The reasons for not setting up datacenters in India previously were patchy internet connections, limited bandwidth, unreliable power supply and low quality optical fiber connectivity across the nation. However, things seem to be improving and Microsoft has announced it will open its own datacenter in India by the end of 2015.
According to Abhijeet Nandi, Software Engineer at Tata Consultancy Services (TCS): “Cloud technology has enabled us to take the workplace anywhere. Cloud also adds to the flexibility of infrastructure capacity, reduced energy consumptions, unlimited storage and most of all offers high data security.
"IBM’s new datacenter at Mumbai will certainly be a huge step for India’s IT growth.”