Netmagic to setup two new data centres, plans to expand capacity to 13 lakh sq.ft by 2018
Company will build two new data centres in Mumbai and Bangalore that will be spread over a 7 lakh sq.ft area, which would double its overall data centre capacity to 13 lakh sq.ft area in next two years. Know more!
- (1888PressRelease) May 19, 2016 - Bangalore : Netmagic , a NTT Communications Group company, which offers cloud and managed hosting services in India is all geared up to expand its overall data centre footprint and capacity over the next two years.
"We are specifically expecting to expand our data centre capacity further. We are planning to double our data centre capacity over and above what we have over the next two years. We are coming up with two new data centres in Mumbai and Bangalore by April 2018," Netmagic's COO, Sunil Gupta told ETCIO over the phone.
Netmagic has nine data centres in total - five in Mumbai, two in Bangalore and one each in Chennai and Noida. Company's latest and fifth data centre in Mumbai is claimed to the biggest data centre facility in India, is spread over 3,00,000 sq.ft space.
The combined data centre capacity across all these nine facilities is currently around 6,00,000 sq.ft area and it further with the plan of two new data centres which is in the range of 7,00,000 sq.ft that will expand company's overall data centre capacity to 13,00,000 sq.ft space. The two new data centres are expected to be operational by April 2018.
The move is largely driven by two key factors. Firstly, the Japan based NTT Communications Group has been investing significantly in Netmagic over the last few years and secondly, there has been a strong demand of data centre and cloud services in India in recent times.
"There has been a significant capital investment by NTT, so we as a company are able to grow our footprint big time. After the investment, we have been able to launch our second data centre in Bangalore which has a 1,20,000 sq.ft space and six month ago, we launched our fifth data centre in Mumbai, which is a largest data centre in India, spread over 3 lakh sq.ft area," Gupta said.
Company has already finalized real-estate deals for this two upcoming data centres in Mumbai and Bangalore but it is waiting for fund infusion in the range of some Rs2,000 crore to actually initiate the construction work of the two planned facilities.
The funding will be a mix of equity based capital infusion and some debts from local banks. Unlike many of its existing data centres which are largely built and setup on lease space, the two new data centres will be constructed on company owned premise.
In terms of the data centre market growth in India, Gupta pointed that data centre is the hub of all the digital activities happening in India whether it be it e-commerce and its extension, Digital India or even other market drivers like 4G, big data or IoT.
"All these ultimately need some kind of storage, compute and analytics and end up at some central place and that central place happens to be the data centres," Gupta explained.
According to Gupta, NTT's significant investment into Netmagic has enabled the company to capture the market big time. In fact, Gupta informed that compared to last year Netmagic grew 47 percent in revenue terms during the 2015-16 fiscal, which is much higher than the expected 39 percent growth at the fiscal's start.
Over the past three years, Netmagic's co-location services and cloud services have grown 30-40 percent and 70 percent on an average respectively.
For the next fiscal 2016-17, Gupta is expecting an annual 41 percent revenue growth with more than 100 percent growth in the net operating metrics in terms of P&L and about 25 percent addition in headcounts mainly on the managed services business.
"Our vision, basically is to make Netmagic an Rs1,500 crore company by 2020, which my conservative estimate; however NTT's vision is around Rs2,000 crore," Gupta stated.
While, Netmagic has achieved significant growth in the Indian data centre market in recent years, Gupta credited a major portion of this success to NTT Group and its overall approach.
He said that being a part of the NTT Group, Netmagic is able to get lot of global business from NTT and is serving NTT's global Fortune 500 customers in India.
Given the fact that Netmagic has a strong position in the cloud and managed services space, "NTT, itself is shifting a lot of managed applications, services, resources and management of renewed contracts to Netmagic. Some 150 employees have been recruited to handle the managed services portfolio," Gupta informed.
Even though, NTT Communications Group had acquired a majority stake in Netmagic in July 2012, Gupta emphasized that company still continues to runs its business operations independently, the same way it used to do five years ago.
"This is unlike of those typical M&A (mergers and acquisition) that happens in the industry, where the company has freedom to run business," Gupta concluded.
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