Third-party data center mkt looks hot in Chennai

CIOL Bureau
Updated On
New Update


BANGALORE, INDIA: Industry reports predict that revenues associated with the managed services market will grow from nearly $30 billion in 2008 to nearly $43 billion in 2013.

A previous IDC India study on the data centre market opportunity covering six cities i.e. Delhi, Mumbai, Chennai, Kolkata, Pune and Bangalore pointed out that while the captive market will grow only at a CAGR 16 per cent, third party data centre market will grow at a CAGR of 35 per cent in the next 2 years.

The study also revealed that an increasing number of companies in these cities will opt for third party data center owing to benefits such as cost in terms of power, skills, real estate, availability of power and skill and maintenance of industry standards and accreditations.

“With enterprises facing issues such as manpower retention, the deployment of complex applications thus causing issues like 24x7 monitoring, security, business continuity, etc. along with the growing need to provide quality services both to customers and employees, outsourcing IT infrastructure is becoming a key driver to survival. Understanding this burgeoning need, Netmagic has launched its fourth data center in the country.” explained Sharad Sanghi, CEO and MD, Netmagic Solutions, a carrier-neutral Managed IT Services provider that today announced the opening of its most energy efficient data centre in India in Chennai.

As per a press release, this new project forms a significant part of the company’s current expansion project within the hosted and managed services division.

The 30,000 sq ft data center will offer Netmagic’s dedicated hosting services, bandwidth services, disaster recovery services, remote infrastructure services, application services and cloud computing services.



“Chennai has a strong base; with many industrial businesses like automobile manufacturers, the city posses a well developed corporate community. Also Chennai is a strategic location for our clients in Delhi and Mumbai from a disaster recovery point of view. We have therefore made a substantial investment in the Chennai market, to the point where we now have our most energy efficient hosting and managed services present in the region.”

Talking about the company’s commitment to Chennai in terms of investments and revenues, Sanghi added “Chennai is a strategic market for our company, in the medium term we are expecting 10 per cent to 20 per cent of our revenue to come from this data centre, as it will help efficiently fulfill need of enterprises and SMB organizations in India for data centre space, ample power, connectivity and world class infrastructure”