Two years back, research firm, Gartner had made a prediction that the the Internet of Things (IoT) will have a huge transformational effect on the data center market. Gartner estimates that IoT deployments will generate large quantities of data that need to be processed and analyzed in real time. This is bound to have a big impact on the workloads of data centers as enterprises will face a huge challenge in processing large quantities of data in real time.
India is in the midst of a huge digital transformation which is being pursued aggressively by a government which wants to use technology to improve every practical process. In a digital economy, as more devices get connected, one can expect a surge in IoT devices such as connected cars, wearables and connected industrial machines. This is accelerating demand for service providers such as Netmagic, who are helping enterprises address their capacity management issues with respect to fulfilling their greater computing and storage capacity needs.
“As India gets more and more connected, we are witnessing the rise of new business models enabled by connected devices. Smart meter reading, industrial machines monitored by the makers and provided as a service, and the rise of cars booked by apps, are just some of the emerging business models. As these businesses need to have centralized data processing capabilities, they are taking the help of specialized players like us who can provide them with the capability to run uninterrupted services as they depend on real-time data,” states Sharad Sanghi, Founder, Netmagic.
Riding on the success of SAP HANA
With the popularity of SAP HANA, Netmagic has also found huge acceptance for hosting of the SAP HANA infrastructure for its customers in its datacenters. The firm has already signed close to 9-10 customers, and is witnessing rapid adoption among its client base. A case in point is Consul Consolidated which has selected Netmagic Solutions, to host India’s first SAP HANA implementation.
Another big trend that is responsible for the firm’s growth is the continued rise of R&D centers in India. As some of the firms that are setting up R&D centers in India have global agreements with its parent, NTT Communications company, it is fueling demand for Netmagic’s data center services.
The cloud as a business has been a mainstay for the firm. For example, out of 2,000 customers, the firm has more than 600 customers in the cloud space. Specialized services like DR-as-a-Service (DRaaS) are also seeing rapid adoption, due to the economics and value proposition in terms of factors such as speed of recovery, flexibility and reliability.
With the acquisition of Netmagic by NTT, the ticket sizes have more than doubled. Among NTT’s global customers, there is a lot of awareness about Netmagic’s remote infrastructure management capabilities.
Digital momentum
India is at the cusp of a huge transition enabled by digitization, and players like Netmagic have been quick to spot the opportunity. “We have been growing at a CAGR of over 35 percent for the last 5 years. We are confident to sustain this momentum going forward. Also, we have grown more than 50 percent in the last twelve months,” states Sharad.
The company expects to see the e-commerce vertical to contribute immensely to its reveune target growth followed by banking and financial services. e-commerce and IT/ITeS each accounts for about 27-28% of the company’s revenues, followed by BFSI, which accounts close to 11%.