Monday, September 29, 2008

HCL assesses green quotient of enterprise data centers

HCL Technologies unveiled its Green Datacenter Services featuring a unique Datacenter Green Quotient Assessment Framework.
The launch took place during Computerworld's Green IT Symposium, September 17-18, 2008 at Gaylord National Resort and Convention Center, National Harbor, Maryland, where HCL is participating as a Platinum Sponsor.
HCL Technologies' suite of Green Datacenter Services will help enterprise IT organizations reduce their companies' environmental impact through assessing, planning, and implementing green initiatives around their DC environment.
A key highlight of this offering is HCL's Green Datacenter Assessment Framework, which helps enterprises find out the environment friendly status of their data centers.
Commenting on this theme, Anubhav Saxena, Associate VP—Business Development and Customer Advocacy, HCLT ISD said, "Data center is the heart and headquarter of all IT activity and hence from the perspective of sustainable IT, achieving energy efficiencies within the data center is key to a successful green IT policy. We at HCL recognize this enterprise imperative and have therefore built a unique suite of services, which offer 360-degree solutions for data center greening and seek to provide cost savings to the tune of 20-30 percent in DC operations. We are privileged to have given the opportunity to display our capabilities at an esteemed event such as this."
HCL has recently become a member of the US Green Building Council. The company is also the first in India to have a comprehensive environment management program and to be ISO14001 compliant with a comprehensive policy on Waste of Electrical and Electronic Equipment (WEEE). HCL, in alliance with Tata Energy Research Institute (2007 Nobel Prize winner), is also an active member of ICSD (India Council for Sustainable Development), a non-government organization working towards the ultimate 'Green Goal' of Government of India by participating in various sustainable development projects at various levels.

Thursday, September 25, 2008

Data Center Hosting Provider






Friday, September 05, 2008

This is a new category that we've added to the Most Wanted IT Brands analysis this time. The number of data centers is increasing in the country, and companies have a lot of interest in hosting various services with them. Around 62% of the respondents to our survey said that they're likely to choose a data center hosting provider in the coming 3 months, and a nearly equal percentage of them saying that they already host some of their services with one. At an overall level, all brands seem to be gaining pull, but need to put in more effort in order to become more persuasive. One more interesting thing we observed in this segment is that brand loyalties amongst the users of data center hosting providers is very high. Very few people actually switch out. This is interesting but not surprising, because such services are long term contracts, which take a long time to get in place, making it very difficult to shift out.
Three brands managed to gather sufficient votes for us to analyze in the survey this time. Out of these, VSNL is the most future ready brand. As it's the oldest player in the game, it enjoys the highest degree of persuation. Most of the CIOs who recall it on top of mind also say that they're likely to use its data centre hosting services. Its brand pull situation however, is a concern area. Though there are usres likely to switch to it, there are more users switching out of it. Maybe it's because there are better facilities coming up for data center hosting, which are giving VSNL competition. VSNL enjoys a brand loyalty of 78% amongst its existing users, with only 5% users likely to switch to other brands, and another 17% who're not sure which brand to shift to.
Just behind VSNL is Sify, which is another brand that's been in the market long enough to understand its ups and downs. It is however far behind VSNL with a future readiness indes of 38%. It's the third most persuasive brand of the lot, and does need to work toward improving the same. The same goes for its brand pull as well, where though there are more users likely to switch in to it than switch out, the number needs to ramp up significantly.
Even the brand loyalty figures for Sify aren't as good as the other players. It has 47% brand loyalty, but there's a catch. Currently, none of its existing users said that they're likely to move out of it. There is however, a massive 53% of the respondents who are not sure whhich brand to switch out to. So Sify should try and make the best of this situation before competition does. At a distant number three is Reliance Infocomm with a relative future readiness index of 35. It's the second most persuasive brand of the lot, and records the highest brand pull. Its brand pull is also better than Sify's at 56%, with only 6% users who're likley to switch to other brands and another 38% who are not sure.






India Targets $15 Billion From Infrastructure Management

Indian outsourcers already have a large share of outsourced application development and maintenance and are dominant in business process outsourcing. The country is now targeting a larger share of the market for remote infrastructure management services (IMS), and is planning to more than double revenue from these services to US$15 billion by 2013.
IMS involves managing an enterprise's core IT systems, including hardware, software, connectivity and people. The IMS industry is moving towards a remote delivery model where services are increasing delivered from low-cost locations by service providers and wholly-owned services subsidiaries of user companies, according to a report released Thursday by India's National Association of Software and Service Companies (Nasscom).
Customers in the US and Europe are increasingly willing to outsource IMS to offshore locations, because the data does not move out of the home countries, and is only managed remotely, said Siddharth Pai, a partner at sourcing consultancy firm,Technology Partners International (TPI) in Houston, Texas.
In India, IMS business is going both to Indian outsourcers, and the Indian operations of large IT services companies, Pai said. Because of the large staff component involved in IMS, there are cost benefits in outsourcing IMS to low-cost, offshore locations like India, he added.
Research done by management consultancy firm McKinsey for Nasscom, suggests that the IMS business could generate between 325,000 to 375,000 jobs in India by 2013, as 70 to 75 percent of the roles in IMS can be moved offshore.
Low-cost locations, including India, have so far captured a mere $6 to 7 billion [b] of the IMS opportunity.
Indian outsourcers have so far learned to price their services on the basis of staff time utilized. They now have to learn more sophisticated pricing that takes into account other parameters like amount of computing power being managed, if they are not to risk losing money in the business, Pai said.----PC WORLD, Feb 2008

India’s Managed Service Market Growing 25% Annually

The India Managed IT Services market is expected to grow at a compoud annual growth rate (CAGR) of 24.9 per cent to become a $2.78 billion (Rs 12,232 crore) industry by 2010, says IDC making it one of the fastest growing markets in the Asia/Pacific region.

The total India Managed IT Services market in 2007 was estimated to be $1,170 million (around Rs 5,148 crore) with managed network services accounting for the biggest share of the pie followed by Managed Desktop Services. This represented 20 per cent of the total India domestic IT Services market, which crossed $5 billion revenues in 2007.

The report notes that the notion of managed services is no more just hype or an industry buzzword. Initially, the market witnessed large user enterprises adopting infrastructure management services (IMS) as they looked for competent partners to manage their increasingly complex IT infrastructure.

Praveen Sengar, Senior Manager, Software and Services Research, IDC India, said: "While engaging in outsourcing contracts, management should have a clear vision on long-term organizational goals along with activities that can be outsourced. A sound process to select the right vendor must be employed, evaluating prospective partners on multiple parameters and not just cost alone."

Moving forward, the fastest areas of growth will be Security, Storage and Data Center Services. IDC predicts Security and Storage Services to grow at CAGR of 31 per cent and 28 per cent respectively, over the next three years (2008-2010). Today the market for these services is still nascent. However, their adoption rates are expected to pick up at a fast pace as these services become inevitable for the ‘extended business enterprises’

Data centre outsourcing can work

Business Standard

The complexity of business demands, cost constraints, data growth and staffing issues are driving companies to outsource their data centre operations or specific tasks like email, web or help desk services to third-party vendors, also called managed service providers (MSPs).
These MSPs include Reliance Communications [Get Quote] (RCom), Tata Consultancy Services [Get Quote] (TCS), Bharti, Netcore, and Ctrl S. The biggest outsourcers are enterprises, banks and financial institutions at 28 per cent, followed by manufacturing -- 25 per cent, public sector -- 18 per cent, telecom -- 9 per cent and retail -- 8 per cent.
A data centre is essentially a computer room, a physical facility that allows a company to store and manage servers, networks and other computer equipment in a controlled-environment.
Ayyappa Nagubandi, Managing Director, Nowpos, a Hyderabad-based voice technology company, which outsources its data centre jobs to Ctrl S, admits it's cheaper "and saves recurring operation costs of managing an in-house data centre".
Niranjan Prasad, Director, Metamind Software, another Ctrl S client says: "Outsourcing jobs to a third party means reliable power supply, sufficient bandwidth, ample disk space, reliable security etc and not only server upkeep. It is a complete hostage facility. It hosts enterprise-level applications for, which we are not technically equipped."
According to a Symantec report, IT managers in the Asia-Pacific region rely on outsourcing data centre operations more than their peers.
Currently, India's data business is pegged at $983 million (around Rs 4,000 crore), which is a mere 2 per cent of the world market share. Web research firm Data Monitor predicts that this business will grow at 22.2 per cent per annum.
The Indian managed services market is currently dominated by telecom companies as it is a value-added attraction for their customers who may already be subscribing to various telecom facilities like broadband and leased lines.
"Globally, web hosting is an increasing trend. Besides that, data centre services are seeing more growth among other managed services, "Abid Qadiri, Vice President -product management (Managed Services), Tata Communications, says.
Soumitra Agarwal, Marketing Director-India, NetAppa -- partner of Tata Communications in providing storage services -- agrees with the view.
Shantanu Ghosh, Vice-President, India Product Operations, Symantec Corporation, notes that the Indian data centre market opportunity is expected to be driven by increasing supply and decreasing cost of Internet bandwidth and domestic companies hosting their mission-critical applications such as ERP and CRM in third-party data centres.
In the 2008-09 Budget, the government announced a Rs 275-crore (Rs 2.75 billion) package for setting up state data centres, which is expected to give this trend a further boost.
"As bandwidth prices fall to around Rs 6000-8,000 per Mbps per month, India becomes an attractive destination for hosting," says Sreedhar Reddy, Chief Managing Director, Ctrl S Data Centers, a Hyderabad-based service provider in data centre solutions.
Naresh Singh, principal research analyst in the enterprise network services and infrastructure group of Gartner, an IT research and advisory company, says: "The market will grow faster because of two developments: more and more foreign companies are hosting web content from India and the trend will grow steadily over 4-5 years."

Data Center outsourcing takes center stage

Outsourcing data center operations in toto is catching on amongst Indian organizations as setting up one’s own data center is an expensive proposition both in terms of money.

The operational costs of Indian Data Centers (DC) are increasing which is pushing DC managers to outsource their DC operations in toto. The increasing cost of power, cooling, raw space, security issues and management are all fueling this trend in India. Additionally the initial high capital costs, management and staff costs, which crop up while running one’s own data center are factors that are leading company’s to think outsourcing. Routinely adding new services or upgrading to the latest technology is not always feasible; sometimes it requires bringing down the DC. Today service providers specializing in data center outsourcing are emerging, as there has been a significant increase in DC maintenance cost, which is high for Indian organizations. The challenges in managing in house data centers have forced them to give the work to Managed Service Providers (MSPs). Adopting changing market dynamics and benchmarking the infrastructure space combined with increasingly tight budgets have led to the creation of a scenario in which it makes sense for organizations to outsource this service to a co-location, carrier-neutral DC. Not every enterprise will have the resources and know-how to deal with these issues. This is why it is important to examine a data center sourcing alternative as part of a company’s overall IT strategy. Adopting these innovative strategies to develop a data center that’s aligned with business goals can give businesses a lasting competitive advantage.
The likes of Bank of Baroda, Bank of India and Britannia have outsourced their data center requirements to HP. Then there are others such as Moneycontrol, IBN Live, Johnson Tiles, WorldSpace Radio, Indiainfoline, TELCO, Travel Guru and Yatra that have outsourced their DC requirements to specialized MSPs such as NetMagic Solutions. Express Computer probed deeply into the aspects pertaining to the outsourcing of DC requirements to third party specialist firms by organizations and the reasons for this trend.

Owning data centers is a difficult proposition

As per research conducted on behalf of HP it was estimated that more than one-third of Chief Information Officers (CIOs) believe that in two to five years their DC will be unable to meet the rapidly growing demand for business services and applications and solutions for building a next-generation DC. The research pointed out that a large number of companies are facing the challenge of transforming their technology infrastructure environments into agile, energy-efficient and cost-effective assets to drive business growth. Increased pressure is being placed on CIOs to deliver more business services at a reduced cost, while at the same time DCs are approaching the limits of their energy, cooling and space resources. The research estimated that over 50% of large enterprises would face DC floor space shortage in the next five years and by 2010, more than half of all DCs will have to relocate to new facilities or outsource some applications to third party players. The report also observed that over the next five years, power failures and limits on power availability will halt DC operations at more than 90% of all companies and that in the next two to five years present day DC will be incapable of dealing with the rapidly growing demand for services and applications. Globally many CIOs are aiming at reducing the number of DCs that their companies operate through transformation including improving technology, increasing productivity and lowering overhead and management costs which includes improving technology, increasing productivity, lowering overhead and reducing management costs. These findings are not very different in India. Large enterprises have already started the feeling the heat.
Barry O’Connell, Director of HP’s Consulting and Integration Business Unit, explained, “DC operations are core to an organization’s business and there are certain elements of risks involved when they built their own DC. Risks can be in the form of choosing an appropriate location and maintaining uptime based on business requirements. Nowadays customers have the liberty to exercise different sourcing options, which help them, define as to what part of the DC operations they would like to outsource. Customers are looking towards an optimized DC environment by outsourcing it.”
There have also been environmental concerns and DCs are under increasing pressure to reduce their carbon emission footprint and dispose off old computing equipment in a safe and eco-friendly manner. To meet these evolving demands, DCs are aiming to achieve near continuous availability, increase capacity and efficiency, and become greener. Unused capacity, redundant functionality, inefficient or outdated designs, an ever-growing number of assets, and aging servers make these environments complex and expensive to manage and maintain as well as difficult to scale. In addition, power costs are rising steadily, leading to exorbitant electric bills.
There have also been concerns about building DC skill sets, which are a challenge for organizations. Sharad Sanghi, Chief Executive Officer and Founder NetMagic Solutions, explained, “Building skill-sets to run DC operations is a challenging aspect for many Indian organizations. Different skill-sets to manage databases and applications are required in a DC environment, which is not only costly but also hard to come by and also puts an additional burden on an organization’s IT budget. Skill-sets are also required to design and execute a modern day DC.”

Monday, September 22, 2008

Data center outsourcing on the rise in India

Estimates put the third party data center market including co-location services, hosting services and managed services in India at $150 million [2007]. With a projection of an average CAGR of 36% over the next two years, the verticals that outsource the most are BFSI and manufacturing together accounting for about 53% of the market.
Companies in India, like those elsewhere, have to move swiftly to adapt to change, seize new opportunities and meet the demands for increased productivity and reduced costs. Data center outsourcing is the outcome of this requirement.
Before considering the case for outsourcing, we need to understand what drives corporations to outsource their data centers at all, particularly given their fears about data security, reliability and intellectual property. Clients look to data center outsourcing when they face one or more of the several issues like cost pressure, increasing management time and high investments in technology and infrastructure.

Here are the figures for the 2006 and 2012 (projected) popularity of data center outsourcing across various verticals.

Verticals 2006 2012
Financial Services 28% 33%
Telecommunications 9% 11%
Manufacturing 25% 24%
Energy and Utilities 4% 3%
Healthcare 4% 5%
Media and Entertainment 1% 2%

----------Source: Datamonitor

Wednesday, September 17, 2008

Data Center Market India

INDIA DATA CENTRE MARKET SET TO REACH USD 1.5 BILLION BY 2010; POWER CHALLENGES REMAIN CRITICAL:
A new report from consulting company and data centre market specialist BroadGroup finds that the India market is experiencing substantial growth and will reach more than USD1.5 billion in value by 2010. Yet power supply remains a critical challenge for the country.
Based on a study detailing the profiles of 34 players, the study reveals that while growth is occurring at unprecedented levels, challenges remain particularly those relating to infrastructure, power – and the quality of power –and land availability.
Technical space will nevertheless more than double over the next two years. Fuelled by offshoring, overseas MNCs, and domestic demand, data centres in India have experienced significant growth over recent years, and as the survey reveals, new build and plans for new build are well advanced producing a spike in space that will more than double current capacity.
The core of the report details profiles of 34 players in India, both overseas and domestic, and the report examines current availability, location and expansion plans. The scale and capacity of the international ambitions of the top five players is supported by significant and growing demand from the local market. Although Global MNCs are becoming selective about the robustness of power supply, security and green credentials, overseas systems integrators and consultancies are sustaining and expanding their investments in India.
“India has the opportunity to become a global hub,” commented Frank Booty, editor of Data Centre News. “India’s language capabilities, skill levels, culture and governance are suited to the country becoming a global hub. It also has a resilient economy driving domestic demand for services. Until now much of the data coming out of India has been stored on servers in the US.”
Data Centre build however over the coming years will need to reflect the Green standards increasingly included in corporate RFPs, and there is an urgent need to address how the infrastructure will cope with the levels of power demanded by these plans. Corporates will also need reassurance about data loss and disaster situations.
In common with data centres globally, India data centres confront the challenge of cooling. Growing alarm expressed by interviewees for the report focused on the dollar/rupee spending on blade servers today, which embeds two to four times more power consumption in the same or less space, than was required by the equipment being replaced.
The report is the first to assess a complex and fast changing market but one that contains significant opportunities for companies engaged in the sector from the operators themselves through to a huge business for air conditioning companies and UPS suppliers.
Further information on the report can be found at http://www.datacentres.com/reports/dcindia08.asp.

Major Players in India:
  • Reliance Data Center ( Reliance ADAG group)
  • Tata Communication ltd
  • Sify
  • NetMagic
  • Net4India

Data Center Outsourcing

Outsourcing Data Center operation is gaining its ground in India. Not only large enterprise but SME's are also outsourcing their some or full data center infrastructure to third party.

Estimates put the third party data center market including co-location services, hosting services and managed services in India at $150 million [2007]. With a projection of an average CAGR of 36% over the next two years, the verticals that outsource the most are BFSI and manufacturing together accounting for about 53% of the market.

Benefits of Data Center outsourcing:

  • Lower TCO
  • Uptime guarantee for server and network through continuous power, redundancy etc.
  • Better security and scalability
  • 24X7 support
  • Compliance