Hyper-scalers are entities like Google and Amazon that create data centre facilities on a scale beyond that of regular enterprises.
“As the economy becomes more digital, data storage will become a massive opportunity,” said Raja Lahiry, partner, Grant Thornton India. He added that there are several players in the space like CtrlS, Nxtgen, and NTT that are independent and specialty data centre firms.
Hiranandnani’s new venture is well-timed, but it will face heavy competition from both international majors and domestic peers like Adani Group.
“The era of digital economy is here and our objective is to create a facility for data localisation, with security and scale second to none,” said Hiranandani.
In 2016, Hiranandani had built two data centres for NTTCom-Netmagics’ offices in Japan, which is when they understood the business and saw scope for expansion in India. They began building NM1 in India last year.
While players like Microsoft Azure and Amazon Web Services (AWS) have a presence in India too, the question is whether Hiranandani will lease it to Microsoft or AWS for their Cloud footprint.
Hiranandani says they will offer wholesale co-location services to hyper-scale Cloud operators, and tech services (public or private Cloud, hybrid Cloud, SAP hosting, managed services, pay-as-you-use services on opex) to enterprise customers.
“We expect revenue mix to be 60 per cent of co-location (from hyper-scalers), and 40 per cent of tech services (from enterprises),” said Hiranandani.
In co-location, firms can rent office space, network or Internet bandwidth within an existing data centre to deploy its own data centre.