Data centres chart course to move up the value chain

Internet data centre (IDCs), like Reliance IDC and Sify are moving away from providing plain-vanilla hosting services,""like Internet hosting, managed security services"" and simple infrastructure services, to hosting software services. Firms are planning to provide these software services on subscription basis as well.

For instance, Reliance IDC, the data centre business unit of Reliance Anil Dhirubhai Ambani group, is investing close to Rs 2,000 crore over the next 12 months in setting up six data centres across six cities.

Along with the expansion of its data centre business over 1 million sq.ft the company will also offer application services to customers. It will launch a few services on subscription basis as well.

Reliance IDC is already in talks with over 50 technology solutions providers for tie-ups to provide these services. It has also identified six areas to start with like"" business process management, business intelligence (BI), data centre billed practice, security and storage management services. The company has already entered into a tie-up with Compuware for providing business service management (BSM).

Sanjay Sharma, Executive VP, Reliance Communications (IDC and managed services) says, "Our business has grown by almost 8 times when compared to last year. Providing solutions services not only in is demand but will also sustain our expansion plans.

Besides it is the next level of growth for the company." Unlike other vendors, Reliance IDC is targeting the enterprise segment for these services.

A recent study by data centre analysts BroadGroup states that the data centres in India are witnessing substantial growth, which could lead to the Indian data centre market being $1.5 billion by 2010.

Sify is another firm that is gearing up its operations. Bhasker S, CTO of Sify says, "There is certainly a shift towards providing solution services. While it is still early in the day, the sector is being driven by the growing need of small and medium enterprise."

Sify too will come out with such services in the next two to four quarters. "We did launch our hosted messaging services. Hosting of other solutions will be the next level. We are also looking at the subscription model," says Bhaskar. Sify is also gearing up its software-as-a-services (Saas) portfolio with a few pilot underway.

"We plan to launch these services in the next one to two months. Currently we are working on the ability to change applications according to the requirement of our customer," says Bhasker. Sify has three data centres in India but is looking at growing its footprint in the next six months.

Analysts opine that with players like Reliance and Sify entering into this space, it will be will be interesting to see the market as it is already being targeted by players like IBM and HP. "Its a different model.

It means these players will have to understand the business needs of the customers, then accordingly alter or suggest applications road-map. They will need to wed consulting expertise with IT capabilities," says Nareshchandra Singh, principal research analyst, Gartner""global IT research and advisory firm.

Firms are also gearing up to play the role of consultant and IT vendor. For instance, Reliance plans to take its services portfolio through its engagement managers. These manager not only have a sales experience but also work with enterprise clients.

Reliance will also expand this team to expand its services in the offshoring segment. Sharma aims to double this number from the current 56 to 112.