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BSNL forays into data center space
The firm has entered the data center hosting and cloud services space to address the growing demand in the domestic and global market By Varun Aggarwal, InformationWeek, November 02, 2010

Following the footsteps of the Tata Teleservices, BSNL has decided to take the cloud route and offer other managed data services along with it. “Last decade belonged to the growth of the telecom and the decade ahead would witness exponential growth of data and related services.” With these words, Gopal Das, CMD, BSNL announced the incumbent telecom operator’s foray into the data center services market.

With an initial investment of Rs 200 crore, BSNL would start offering various services like managed co-location services, dedicated hosting services, disaster recovery services and cloud services (on demand compute, storage and network capacity) within the next six months in association with Datacraft wherein BSNL would provide the data center infrastructure and Datacraft would offer data services and support. The initial agreement is for a seven year period, which is extendable for another three years.

In the first phase, BSNL will build these six data centers at Jaipur, Mumbai, Ahmedabad, Ludhiana, Ghaziabad and Faridabad with a total space of 66,000 square feet and target government and enterprise customers (especially the BFSI sector) for cloud and related services. In the second phase, the company plans to target the SMB market with cloud and SaaS offerings that are suited to meet their requirements. Accordingly, BSNL will setup four additional data centers at Hyderabad, Bangalore, Tiruchi and Ranchi and would tie up with another service provider than Datacraft. This expansion would give the company an overall data center footprint for 1,10,000 square feet.

“SMBs find it hard to manage their IT infrastructure and retain their IT staff. With cloud services, SMBs can leverage our expertise in managing their IT infrastructure with a hosted data center or a complete cloud solution,” Rajesh Wadhwa, COO, BSNL said.

BSNL has equipped itself with a workforce of 8,000 people to support the new business. The company has identified three segments of target customers, categorized as Platinum, Gold and Silver. Platinum and Gold customers would be high value customers which BSNL and Datacraft would serve directly. For the Silver category, the services would be provided through partners.

“Competition is eating into the profit of telecom operators as the tariffs have come down drastically, leading to an extremely low ARPU. Thus, it is imperative for all operators to look at other value added services for additional revenues. We expect these data services to be the most profitable part of our overall business. Currently our revenues from the enterprise segment stands at Rs 1,350 crore and we expect this to grow to Rs 2,000 crore within a year’s time,” Das opined.

The company feels their customer base of 6.8 million broadband subscribers will help them grow their data services business -- both within and outside the country.



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