Japanese telecom service provider NTT Communications has launched its own data center services in India through its Indian subsidiary NTT Communications India Network Services (NTTCINS).  The company will invest $160 million for constructing two new data centers in Mumbai and Bangalore which spans around 50,000 square feet; but they will be operational by April 2018.

The announcement comes after NTT acquired a 100% stake (Rs 533.83 crore) in Mumbai based CDN and hosting provider Netmagic in March The deal received FIPB clearance in March. Note that Netmagic holds an ISP license, which could possibly be used by NTT to offer Internet or broadband services in the country, after trouble with its Tata Docomo brand in India. Apart from CDN and storage services, NetMagic provides Managed Security, cloud solutions, private VPNs among others.

Currently, Netmagic claims to serve 2000 customers globally including firms from industries like financial services, telecom, online media, online trading, and travel among others. It has 7 datacenters located in Mumbai, Bangalore, Noida and Chennai.

NTT Communications holds an MVNO license

On the other hand, the Japanese telco holds a VNO license under the International Long Distance (ILD) segment in India. The company said in April that it will use the VNO license to expand its enterprise networking solutions and other managed IT services in India. Basically, NTT Communications India is bringing its own specialized VPN services to India via the VNO route and clubbing it with Netmagic’s solutions. These services are however limited to enterprises only.

Competition

NTT’s entry into the data center/cloud hosting segment in India comes shortly after Google and China’s Alibaba revealed similar plans. Other major cloud data centers in India include:

  • Amazon’s Mumbai data centers under its AWS platform went operational in February after the announcement in June last year.
  • Microsoft already has already deployed 3 cloud data centres under it Azure Cloud services in India that went live in September 2015. The sites include Pune, Chennai, and Mumbai.
  • IBM also set up its “public” cloud center in Chennai in October last year. It has another data center in Mumbai as well.
  • CloudFlare also owns three data centers in Mumbai, Chennai and New Delhi, and plans on setting up more nodes in the future.