India to Become One of the Largest Data Centre Hubs by 2025

Mohammed Atif, Director of Business Development, Park Place Technologies - India (APAC) in an interaction with Asia Business Outlook,  shares his views on the evolution  and  future of data centers in India and the various challenges faced by enterprises while maintaining the cost effectiveness, and more.

What factors have contributed to the growth and development of the data centre sector in India? And what unique challenges and opportunities do you see in the Indian data centre market compared to other Asian regions?

India, which is often considered a technological forerunner, is regarded as having one of the highest potentials for IT growth. Today, the Indian population is deeply fascinated by technology, which greatly aids in the development of a skilled and capable workforce. India garners the attention of numerous foreign investor firms, including those who are seeking to establish data centers. The cost factor also plays a pivotal role as businesses strive to reduce expenses and optimize capital expenditures. Consequently, India's ability to offer more at a lower cost is becoming an enticing proposition for many companies looking to position their data centers which helped India witness a significant technological growth as a result of these factors.

Today, most CEOs/CIOs put pressure on their teams, demanding tasks to be completed with fewer resources, while they should focus on considering the unique conditions of each company and use their experience to support businesses while ensuring uninterrupted operation with an optimized data centre costs. Notably, the Indian market differs from other regions around the world in terms of service quality which is considered to be the most important factor. Thus, this approach has successfully facilitated the expansion of operations in our region, resulting in consistent year-on-year progress even during the pandemic's challenging times

The cost was the most important factor in the Indian market, which differed significantly from other regions worldwide while service quality was identified as the second crucial factor. Industry leaders should navigate the unique circumstances of the Indian market, where they could draw on their expertise without putting pressure on the team, demanding more with fewer resources. Overall, the company's focus should be on cost, service quality, and leveraging their experience in the Indian market, which will be significant in ensuring consistent success even during difficult times.

In your experience, what are the main cost advantages of implementing TPM services in data centers? Kindly tell us how have TPM services improved operational efficiency with time and reduced downtime in data centre operations.

Companies' primary focus in the realm of data centers is ensuring uptime. Furthermore, they strive for cost savings while also considering the convenience of having a single vendor who can meet all of their data centre needs across all branches. In this context, India plays an important role as a major data centre hub. For example, if a company has an office in India, it is likely to have branch offices in the United States, Europe, or the Middle East. And as a result of such expansion, India being a major contributor to over 190 countries, will aid in providing significant support services to a wide range of regions.

More importantly, India also served as a single point of contact for over a million different OEM brands and models. During the COVID pandemic, companies faced many challenges with their tech refresh cycles. Typically, after five years, companies went for a tech refresh, but due to the pandemic, these plans were put on hold. However, they still needed to ensure service continuity. The delivery time for OEMs of tech giants was significantly delayed, taking almost a year or even more in some cases. Customers, therefore, sought alternative solutions to maintain their services while also cutting costs.

How crucial is the selection of reliable hardware suppliers in maintaining the performance and reliability of data centers? Also tell us what strategies or best practices should businesses follow for an effective network management in data centers?

Firstly, when it comes to maintaining the performance of data centers, the quality of hardware components cannot be compromised. Reliable hardware suppliers provide equipment that meets high standards and specifications, ensuring optimal performance and minimizing potential disruptions. This includes servers, storage devices, networking equipment, and other critical components.

Secondly, the real reliability of data centers heavily depends on the quality and durability of the hardware deployed. Using reliable hardware from trusted suppliers helps in reducing the risk of unexpected failures or downtime; otherwise it can encounter severe consequences like data loss, system unavailability, and negative impacts on business operations. By selecting trustworthy suppliers, organizations can enhance the overall reliability of their data centers.

In my experience, while reviewing hardware suppliers, customers do consider several criteria. Firstly, they examine the suppliers' current customer base and the organizations they support. This helps to gauge the supplier's track record and their ability to meet the needs of diverse customers. Then customers often investigate whether the suppliers have a global presence or not, as this can indicate their reach and capabilities to provide support and services across different regions. A widespread presence can also suggest their ability to handle large-scale deployments and provide consistent support.

Lastly, the duration of a supplier's presence in the market is considered an essential factor. Longer-established suppliers tend to have a deeper understanding of the industry, more refined processes, and a proven track record of delivering reliable hardware solutions.

If we look at effective network management from a third-person perspective, it becomes evident that customers must be aware of crucial details such as their bandwidth usage, the flow of traffic, and the background functioning of their internet usage. These factors play a significant role in ensuring a stable and reliable internet connection. By applying this knowledge, customers can provide proper visibility to other end users, allowing them to enjoy an enhanced bandwidth connection. Naturally, to achieve all these benefits, customers require a monitoring tool capable of overseeing these aspects. It is essential to select a reliable hardware vendor who ensures that the equipment is of the highest calibre that helps in lowering the likelihood of failures, and fosters confidence in the stability and endurance of the data centre infrastructure in order to maintain the functionality and true dependability of data centers.

How important is sustainability in the long-term success and competitiveness of data centers?  What sustainable practices or initiatives should organizations follow to minimize environmental impact?

When it comes to sustainability, it is crucial for customers to consider a long-term plan. They need to not only factor in costs but also assess whether the equipment in question can be maintained effectively for an extended period, not just for a year or two but more. In such calculations, IT directors often evaluate whether they have a vendor capable of supporting the system or they can temporarily reduce capital expenditure and allocate the budget elsewhere, such as hiring or new projects. Ultimately, sustainability revolves around maintaining the current infrastructure for an extended duration and securing a reliable vendor that can support the devices for more years to come. These are the key factors that IT directors and managers prioritize while addressing sustainability.

What do you envision as the major drivers for growth and innovation in the Indian data centre industry in the coming years?  How do you anticipate the regulatory and policy landscape to evolve to support the expansion of data centers in India?

Today, the IT sector has consistently encouraged startup companies to establish their presence. And as per reports, big tech companies are investing millions of dollars in India to establish a data centre which indicates that the technology sector is flourishing, and there is a visible trend of continuous growth. We are now in 2023, and this market shows no signs of slowing down and is expected to expand further in the coming years, presenting a diverse landscape. We can easily expect India to become one of the largest and most prominent IT data centre hubs for numerous companies by 2025.