BSNL Opens Data Centers In Six Metros; What To Expect?

Bharat Sanchar Nigam Ltd. (BSNL) has opened Data Centers in Six Locations in Tie-up with Dimension Data.

The State-run telecom company will offer managed co-location, managed hosting and cloud services through these centers. Dimension Data has built the centers & will operate them. The locations where these centers have come up is Mumbai, Faridabad, Ahmedabad, Jaipur, Ludhiana and Ghaziabad.

Why the initiative? Even though BSNL owns 50,000 towers and one of the largest land banks and network assets in the country, its profits have come down over the years. So much so, that it had to beg to the Central Govt. for funds to run it rural operations.  BSNL is banking heavily on the ‘Data Center’ market which is currently growing at a CAGR of 22% and is estimated to touch Rs. 6,500 Crores (US$ 1.2 Billion) by 2016. It has already managed to bring on board Employees Provident Fund OrganizationIndian Oil Corporation Limited and Punjab Treasuries.

However, BSNL will have to bag contracts from large government organizations, distance education providers, private enterprises in order to be successful.

What edge does BSNL have? Foreign bigwigs are already eyeing India’s need for data management. We recently, witnessed how Microsoft is offering free cloud-computing services to AICTE. Amazon too is trying to make a move. Under such circumstances, BSNL can offer assurance about data being in India. While other companies’ servers may be anywhere in the world, BSNL’s servers will be located in India itself. This might just be a deal-making point with the defense sector who wants to house sensitive data, but is afraid about security.

Communication Minister Kapil Sibal added that BSNL’s infrastructural backbone coupled with vacant buildings & Dimension Data’s expertise in providing data center and cloud computing will surely be a shining example of a public-private initiative.

Do you think BSNL’s game-plan is good?

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