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Mega Networks eyes big market for AI servers

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At a time when AI demand is growing exponentially, Mega Networks is on the cusp of a major milestone – manufacturing its own AI servers. Additionally, the company’s recent recognition under the Production Linked Incentive (PLI) Scheme 2.0, alongside global giants like Foxxcon, Dell, HP, and Lenovo, speaks volumes about its strategic position. Amrish Pipada, the Founder & CEO, shares with us how this recognition is set to bring in substantial investments and propel Mega Networks into a new phase of growth

Some edited excerpts:

Mega Networks Pvt. Ltd. is among the only two Indian companies selected for the Production Linked Incentive (PLI) Scheme 2.0. Can you elaborate on how this strategic selection positions Mega Networks in the global market alongside other giants? What are the opportunities you foresee?
India’s global prominence aligns with its transition away from being merely an offshoring destination. It is increasingly taking the front seat of innovation with the China +1 strategy for the world’s leading outfits benefiting India. The country imported IT hardware products worth $8.8 billion in FY23, with China accounting for more than half at $5.1 billion, followed by $1.3 billion from Singapore. The government expects import licensing to encourage local manufacturing with the production-linked incentive (PLI) scheme for IT hardware acting as a spur.

The PLI scheme has catalysed Mega Networks growth and the opportunities that lies ahead are immense. Our vision persists, and we remain committed to innovate, and embrace technologies such as the HPC (High Performance Computing), HFT (High Frequency Trading), HCI (Hyperconverged Infrastructure), PFS (Parallel File system), HPS (High Performance Storage), AI Servers, Immersion Technology & Internet of Things (IOT) and more. This enables us to provide enhanced efficiency, advanced data processing capabilities, while offering tailored solutions across industries, and making a meaningful impact on how businesses operate. The ongoing trends in digitalization, including data localization, 5G, captive networks, metaverse, IoT, and generative AI, collectively contribute to a substantial surge in data creation, thus furthering the need for home-grown server hardware to support this explosion of data in the country.

Your business model focuses on providing comprehensive technology solutions, with a significant emphasis on servers. Could you discuss the rationale behind this diversified approach, and how it aligns with Mega Networks’ commitment to high performance, innovation, and customer satisfaction?
Mega Networks Pvt Ltd. has always been committed to providing comprehensive technology solutions to our customers, and we believe that a diversified approach, with a significant emphasis on servers, aligns with our commitment to high performance, innovation, and customer satisfaction.

The rationale behind our diversified approach is rooted in the constantly evolving landscape of technology and the varying needs of our diverse customer base. By focusing on a wide range of IT hardware, including servers, we are able to cater to the complex and dynamic requirements of businesses across different industries. We understand that modern businesses require robust and scalable IT infrastructure to support their operations and growth, and servers play a crucial role in this regard.

At Mega Networks, we believe in fostering innovation both within our own operations and in the solutions we provide to our customers. Our diversified approach allows us to stay at the forefront of technological advancements and bring innovative products and solutions to the market. By staying abreast of the latest trends and developments in server technology, we can offer our customers cutting-edge solutions that empower their businesses to thrive in an increasingly digital world.

Customer satisfaction is at the heart of everything we do at Mega Networks. Our commitment to providing comprehensive technology solutions, including best-in-class servers, is fundamentally aimed at meeting and exceeding the diverse needs of our customers. We understand that every business has unique IT requirements, and by offering a diversified portfolio of technology solutions, we can address these needs with tailored and effective offerings. Whether a customer requires high-performance servers for data-intensive applications, scalable cloud infrastructure, or robust network solutions, our diversified approach ensures that we can deliver the right solutions to drive their success.

Mega Networks is exploring robust solutions like ‘Data Centre in a box.’ Can you elaborate on the significance of such solutions in the current technological landscape and how they address the evolving needs of clients?
The exploration of robust solutions like ‘Data Centre in a box’ by Mega Networks signifies a strategic response to the evolving needs of clients in the current technological landscape. This innovative approach holds significant importance as organizations increasingly seek efficient and scalable data processing solutions. ‘Data Centre in a box’ represents a compact and all-in-one infrastructure solution that streamlines the deployment and management of data centers, offering a portable and flexible alternative to traditional setups. In the modern-day business environment, where agility and rapid scalability are paramount, such solutions empower clients to quickly adapt to changing demands without compromising on performance or security.

The compact nature of ‘Data Centre in a box’ aligns with the trend towards edge computing, enabling organizations to process and analyze data closer to the source. This enhances real-time decision-making capabilities and also addresses latency concerns. Mega Networks is committed to delivering cutting-edge technology that meets the dynamic requirements of its clients, showcasing a forward-thinking approach to data center solutions.

Mega Networks differentiates itself by offering build-to-order data servers. How does this approach contribute to meeting the unique requirements of clients, and what advantages does it provide in a market dominated by standardized solutions?

In recent years, especially in the aftermath of the COVID-19 pandemic, there has been a notable surge in the domain of digitalization. This transformative shift has resulted in an unprecedented increase in the demand for data processing, compelling businesses to re-evaluate and adjust their operational frameworks. Concepts like hyper connectivity and digitalization have transcended mere buzzwords, evolving into integral components of contemporary business landscapes.

This progression has forced organizations to confront the challenges posed by the sheer volume of data, creating a pressing need for scalable solutions in storage and computational power. The market has primarily been influenced by standardized offerings from major corporations that have taken the lead in this sector. Identifying an opportunity for innovation, we carved out a niche to offer our clients more adaptable and personalized solutions, enabling them to precisely align hardware with their specific operational requirements. The strategic vision led to the development of our ‘Built to Order’ approach, which has been exceptionally well-received by our diverse clientele spanning various industries. This strategy empowers our clients with the flexibility to tailor their solutions, providing a level of adaptability crucial in navigating the dynamic landscape of digitalization.

Our all-encompassing strategy seamlessly integrates customization flexibility, allowing clients to tailor hardware to their specific needs. It also incorporates rapid deployment capabilities for agile adaptation to dynamic business landscapes while ensuring compliance with regulatory standards. In contrast to the inflexible nature of one-size-fits-all standardized alternatives, our integrated strategy at Mega Networks distinguishes itself by offering adaptive and versatile solutions. These solutions effectively address the unique and evolving needs of our clients within the rapidly changing dynamics of the market environment.

The plan to manufacture AI servers is an exciting development. Can you share insights into Mega Networks’ strategy in entering the AI server market, and how you envision this contributing to the overall portfolio and growth of the company?
AI data centers rely on robust graphics processor chips and these chips excel at parallel computing operations, a necessity for powering generative AI applications like OpenAI’s, ChatGPT and Google’s Bard. However, the escalating power requirements of these chips pose a challenge, with high-level chips consuming upto 1,000 watts per chip—more than four times the power needed to run a 240-watt MacBook Air for eight hours.

Recognizing this shift, Mega Networks Pvt Ltd embraced a natural progression into AI servers. Our AI servers are equipped with advanced features designed to address the escalating power demands while meeting the intricate requirements of cutting-edge AI applications. Leveraging state-of-the-art hardware innovation, our servers integrate high-speed processors optimized for parallel processing, a crucial element in handling the complexities of AI workloads. The storage infrastructure is meticulously crafted to ensure maximum throughput, effortlessly accommodating vast datasets. Anticipating the continuous growth in demand for AI servers, we are committed to staying at the forefront of innovation in this space, promising further advancements in the near future.

In the next six months to one year, what are some of the key initiatives planned?
In the next six months to one year, Mega Networks Pvt Ltd. has several key initiatives planned that are aimed at reinforcing our position as a leading IT hardware manufacturer and delivering greater value to our customers. These initiatives reflect our commitment to innovation, customer-centricity, and continual advancement within the technology industry.

We are committed to expanding and enhancing our product portfolio to address the evolving needs of our customers and the rapidly changing technological landscape. This includes the development and launch of new hardware solutions, with a particular focus on advancing our server offerings to meet the increasing demand for high-performance, scalable, and reliable infrastructure.

Mega Networks is dedicated to investing in advanced research and development initiatives to drive innovation and technological advancement. Over the next six months to one year, we will intensify our efforts to explore emerging technologies, such as AI, edge computing, and advanced networking solutions, to develop new and innovative hardware offerings. This will enable us to stay at the forefront of technological innovation and deliver state-of-the-art solutions to our customers.

We recognize the importance of strategic partnerships and alliances in expanding our reach and enhancing our value proposition. In the coming months, we will focus on forging new partnerships with technology leaders, solution providers, and channel partners to strengthen our market presence, extend our product capabilities, and create new avenues for customer engagement.

Mega Networks is committed to sustainability, environmental responsibility, and energy efficiency. This includes the development of eco-friendly hardware solutions, energy-efficient manufacturing processes, and the adoption of sustainable practices throughout our supply chain, reinforcing our commitment to sustainability and environmental stewardship. Our focus on customer satisfaction extends beyond our products to encompass the delivery of exceptional solutions and services. Our aim is to provide comprehensive, end-to-end solutions that empower our customers to achieve their business objectives with confidence.

Mega Networks is poised to expand its footprint in both existing and new markets. In the next six months to one year, we will concentrate on expanding our market presence by entering new geographical regions and strengthening our position in established markets. We recognize that our greatest asset is our talented and dedicated team. We will focus on talent acquisition, training programs, and initiatives aimed at fostering a culture of innovation, collaboration, and professional growth within our organization.

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