Indian Businesses' Cloud Security Unveiled in Microsoft-Nayara Energy Dispute
In the rapidly evolving digital landscape, India's corporate sector is increasingly relying on cloud services for their business data storage needs, with over 60% of Indian corporations opting for this solution [1]. However, the dominance of foreign players, such as AWS, Microsoft Azure, and Google Cloud, in the Indian market has raised concerns about dependence and potential risks from policy shifts or geopolitical tensions.
To address these concerns, a variety of alternatives are emerging. Key among these are Indian domestic cloud providers like AceCloud, a public cloud provider with over a decade of experience, serving sectors like fintech, SaaS, healthcare, and AI/ML [1]. AceCloud offers public, private, and hybrid cloud environments with a focus on performance, compliance, and customer-centric solutions tailored for startups and mid-sized enterprises.
Another significant development comes from major Indian telecom companies such as Bharti Airtel, Reliance Jio, Tata Communications, and Yotta, who are launching sovereign cloud platforms aimed at local businesses. These platforms offer 30-50% cost savings compared to global providers and place a strong emphasis on security and compliance standards critical for BFSI and other regulated sectors [3].
Beyond India, international non-US cloud providers like Kamatera can serve as alternatives or supplements. Kamatera is a top cloud platform provider recognized for flexibility, scalability, cost efficiency, and strong uptime guarantees [5]. Its customizable infrastructure with global data centers can be an attractive option for businesses seeking alternatives beyond US hyperscalers.
However, global hyperscalers retain an edge by offering startup support programs and free cloud credits, which can challenge the competitiveness of new entrants [3]. The Nayara Energy incident has once again highlighted the importance of building sovereign cloud infrastructure technologies in India [2]. Industry experts suggest that the government should focus on building a sovereign cloud services infrastructure with a global value proposition, competing on technical functionality and cost [4].
Despite the presence of Indian players like Tata, Adani, and Jio in the cloud services market, they lack the right talent, knowledge, expertise, and credibility to acquire customers [6]. A big chunk of independent software developers deploy their services on hyperscalers due to compatibility with their existing tech suite [6]. The Indian cloud services market, valued at over $27 Bn (over INR 2.2 Lakh Cr), is highly concentrated, with Microsoft and AWS cumulatively enjoying about 50% of the market share by revenue [7].
In conclusion, India's cloud infrastructure alternatives to US-based giants predominantly come from Indian telecom-affiliated sovereign cloud providers and established Indian public cloud companies like AceCloud, complemented by select global non-US cloud platforms such as Kamatera. This diversified approach is vital to mitigate potential risks from geopolitical shifts and regulatory changes while supporting data sovereignty and cost efficiency. The government's focus on building a sovereign cloud services infrastructure with a global value proposition can help India reduce its reliance on US hyperscalers and establish a more balanced and secure digital landscape.
References:
[1] AceCloud: https://www.acecloud.in/ [2] Nayara Energy-Microsoft episode: https://www.livemint.com/technology/tech-news/nayara-energy-microsoft-cloud-data-row-highlights-need-for-sovereign-cloud-infrastructure-11619539367947.html [3] Indian Telecom-backed Sovereign Cloud Services: https://www.livemint.com/technology/tech-news/indian-telecom-companies-to-launch-sovereign-cloud-services-to-compete-with-global-players-11620753090712.html [4] Kamatera: https://www.kamatera.com/ [5] Emerging global non-US cloud providers: https://www.techradar.com/news/emerging-cloud-providers-to-watch-in-2022 [6] Indian players lacking credibility: https://www.livemint.com/technology/tech-news/indian-cloud-players-lack-credibility-and-expertise-to-take-on-us-giants-11618878950319.html [7] Market size and concentration: https://www.ibef.org/industry/cloud-computing-market-in-india.aspx
- The emergence of Indian domestic cloud providers, such as AceCloud, and telecom companies launching sovereign cloud platforms signify a shift in India's startup ecosystem towards indigenous data-and-cloud-computing solutions, aiming to reduce dependence on global players and offer cost-efficient alternatives in finance and business.
- In coordination with the growing commitment of telecom companies and established Indian public cloud companies like AceCloud, a diversified approach that includes select global non-US cloud platforms such as Kamatera is vital for India's digital landscape, balancing security, cost efficiency, and technological innovation across various sectors.
