Microsoft is contemplating to set up its first local data centre in India.
Microsoft corporate VP and CIO Jim Dubois said, “We are considering a data centre in India. There are a lot of different companies that are looking at cloud right now, in anticipation that Microsoft will somehow figure out how to get that work.”
If the setting up of the local data center fructifies it would help Microsoft offer its cloud offerings to several industry sectors, especially banking, financial services and insurance sector, which is the biggest consumer of technology.
However, Microsoft’s plan may hit a roadblock since RBI guidelines prohibit storing any customer data outside of India, which limits cloud adoption by financial services company.
Governments across the globe have become cautious about sensitive information being stored on servers at foreign locations after Edward Joseph Snowden released thousands of classified documents he had acquired while working as a National Security Agency (NSA) contractor for Dell and Booz Allen Hamilton.
Cloud services are the fastest growing segment for Microsoft, though it contributes less than 5 percent to Microsoft’s overall revenue as of now.
“It (cloud services) is growing double, triple digit every month, not every year,” Dubois said.
According to Gartner, public cloud services market in India is expected to grow from $423 million (Rs 2,550 crore) in 2013 to $1.3 billion (Rs 7,800 crore) in 2017. Gartner expects India to be the fastest growing market for cloud adoption globally.
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