Friday, October 03, 2014
Microsoft and Amazon mulling new data centers in India
In early October, Amazon CEO Jeff Bezos announced that the company was thinking about expanding its AWS cloud platform with a new data facility in India, according to Datacenter Dynamics. Considerations by Amazon came shortly after Microsoft announced its own plans for developing data centers across India. Microsoft plans to act quickly, seizing space in a cloud market that Gartner predicts will generate over $1 billion in revenues in 2017 alone. It would be no surprise if Amazon, or any other major tech companies, makes firm plans to set up shop in India as well.
Begun the cloud war has
Microsoft's latest construction plans have been heavily driven by the company's success with cloud services in India. Data Center Knowledge reports that the company increased its cloud service profits in the country by 100 percent since 2013. Microsoft has also smartly maneuvered push adoption of Azure in India by offering local startups up to $60,000 in service credits. The decision to build a data center in India also reflects an international community that is now more inherently wary of sharing its cloud services across borders. By building in India, Microsoft is poised to both improve the resiliency of its cloud services for the country's 250 million Internet users and acknowledge the country's data sovereignty.
Amazon, like Microsoft, is currently pursuing India as a market for its cloud services. Datacenter Dynamics notes that the company announced a $2 billion initiative to enhance Amazon.in in July, and Amazon reports that its gross sales have already capped $1 billion. Building data centers in India offers Amazon many of the same benefits the move will offer Microsoft, and the increased competition will drive down costs for the Indian IT community.
Data centers may help drive fiber
The growing development of data center facilities in India by Amazon and Microsoft will likely impact the country's ongoing struggles with developing a nationwide fiber-optic network. The initiative is currently being driven by a collaboration between the Baharat Broadband Network and government operators Railtel and Powertel. Light Reading reports that skepticism has been directed at the group's ability to consistently meet its rollout goals, but the development of major data centers may encourage the completion of the project. The remainder of the fiber expansion is expected to cost up to $4 billion, including the cost of fiber-to-ethernet solutions for the nation's legacy hardware.
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