Data centers, like any other aspect of real estate, follow the age-old adage of “location, location, location,” and if you want to build one that is really efficient in terms of energy consumption as well as possessing all the basics of reliability, you have to be really picky about ambient temperatures, power availability and, if your business is hosting for others rather than just needing one for yourself, potential expansion. If you want to achieve a seeming impossibility – a zero carbon footprint to satisfy increasingly draconian regulatory pressures – you need to be even pickier. In the end, what you need is:
Low ambient temperature to reduce your power requirements for cooling.
Someplace where you can get cheap “green” energy, and lots of it.
A location with adequate network connectivity, both in terms of latency as well as bandwidth, for global business.
A cooperative regulatory environment in a politically stable venue.
Japan-based NTT Data recently took a step towards expanding its IT capabilities in India, acquiring a 74% stake in Netmagic Solutions. This marks another important event in the third-party datacenter services market in India. In early 2011, Tulip Telecom acquired a data center facility in Bengaluru at a value of approximately US$46 million. This year, with this deal, NTT Communications not only gets access to Netmagic’s seven Indian data centers, a platform offering public, private and hybrid cloud services, but also inherits the capability to address the fast-growing South Asia data center services market.
Netmagic’s acquisition has long been speculated. The firm has the right set of service offerings, technical capabilities, and local coverage, but it lacks the financial muscle power of its competitors (including Reliance Communications and Tata Communications). Netmagic would have had a tough road ahead in the Indian market without external help. So I believe that this acquisition also comes at the right time for Netmagic Solutions.
Here is a quick look at what this acquisition brings to both companies:
Stronger foothold in the Indian market with access to 1000-plus customers.
A critical piece for its Asia-focused cloud strategy and a step closer to its objective of having 20% of its total revenues outside of Japan in 2013.
Better servicing capabilities for NTT’s global accounts based out of India.
Financial muscle to compete in and penetrate further the India market.
Access to knowledge base and technology from NTT Data and its numerous IT subsidiaries.