CIOs are big influencers though not the final decision makers. We see more than 80% of CIOs and CTOs engage in safe decisions than the right ones with their IT infrastructure through traditional budget and vendor evaluation process. They engage with the biggest brands (at competive prices) and tomorrow if some IT piece fails they are still safe from sharp criticism from board due to big OEMs' hardware. That's a challenge.
How would cloud adoption impact the market for IT appliances like storage, servers' etcetera in India?
The hardware business will continue to grow at double digit in India. And cloud will also grow.
Most of the Fortune 500 companies have majorly B2B workloads on cloud like KYC, documents, customer information etc. This is only 10% of their total workloads. This is because most top verticals like banks, telcos are not on cloud. Hence we foresee a huge opportunity with cloud in B2B space.
How easy or difficult has been the path for ESDS as a new data services player to convince India Inc. about cloud?
Initially it was very difficult for enterprises to host their workloads and applications in our datacenter. DR hosting was our 'foot in the door' business opportunity. Today almost 35% of India revenues come from DR. With our DR hosting, the customers save around 70% through our pay per consumption cloud model. Also they saw DR drills, support level, managed services from our end that helped build trust amongst Indian enterprises. They can now focus on innovation and launch new products and focus on business growth leaving the cloud part to us.
Our strategy to target enterprise accounts with smaller products and services has worked. And then the companies start utilizing more product offerings from our end over a period of time.
We have named accounts across most verticals including large conglomerates, oil and gas, FMCG packaging, automotive etcetera wherein we started cloud on one or two virtual machines as initial orders. But later they kept on adding hundreds and thousands of VMs.
Acquiring customers for cloud is a challenge. But later the upsell and cross sell of other products becomes easy as CIOs get comfortable with the cloud paradigm.
What about companies' demand for cloud providers to have local datacenter in India?
Yes. Almost every customer wants to host their data or applications in a local datacenter. In India, Mumbai and Bangalore top the list of preferred cities. They are more comfortable and it's a mindset issue that the data is safer at a closer location. However we have seen breaches or downtimes happen even when the data is on premise or in their private datacenter.
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