Microsoft is in talks with state-run telecom equipment firm ITI Ltd to use its upcoming data centre for the tech giant’s Azure cloud services, said The Economic Times.
The talks are in line with Microsoft’s aim to tap into the growing opportunities surrounding government contracts within the country.
ITI is building the data centre in Bengaluru, which will have more than a 1,000 racks.
India is fast proving to be a fertile ground for companies working on cloud, with opportunities abounding in BFSI (banking, financial services and insurance), retail and internet sectors.
Giants such as Microsoft, Amazon, Alibaba and Google have already set up data centres in the country, which now has close to 150 data centres, said the report.
Local data centres assume increased significance due to recent developments.
To store and process Indian data locally, the central bank had set a 15 October 2018 deadline for global payment firms such as Visa, MasterCard and Google Pay.
The draft data protection Bill also recommended critical personal data to be stored locally.
Microsoft already possesses a few cloud regions in India.
“Microsoft has a two-pronged approach to cloud. First, it delivers its own cloud services via Azure data centres in India. The other is via Azure stack, which enterprises and services providers/hosters can use to deliver their own cloud services,” Santosh Rao, an analyst who tracks cloud business for technology researcher Gartner, told The Economic Times.
Gartner had earlier estimated that public cloud service spending will reach $2.5 billion by 2019.
Microsoft will have a local cloud service partner engage with ITI Ltd for Azure cloud services.