As a provider of managed hosting and co-location cloud hosting services, Netmagic has succeeded where many have failed. Its data center business is growing and it will soon add two more datacenters to its portfolio. Netmagic also wants to be a one-stop shop and offer the complete stack, which includes connectivity. The parent company NTT Communications (NTT Com), is a leading global provider of connectivity solutions. Last year NTT Communications India Network Services (NTTCINS), a wholly-owned subsidiary of NTT Com, received an NLD license to offer connectivity within India. In March, NTTCINS got a license for ILD or international circuits.
Brian Pereira, Content Director, Digital Creed met Sharad Sanghi, Managing Director & CEO, Netmagic (An NTT Communications Company) to discuss how he will leverage on the NLD and ILD licenses, and how Netmagic’s customers will benefit.
Q. NTT Communications acquired an NLD license last year and also an ILD license in March this year. What do you plan to do with those licenses and how does that fit in with Netmagic’s strategy?
Short answer: Now Netmagic can also provide network services to its customers through NTTCINS. That puts Netmagic in a position to offer the full bouquet of services: datacenter, colocation, managed hosting and cloud services – along with network services (ILD or NLD).
We also host infrastructure for MNCs that need connectivity to their global offices. This connectivity will be provided by NTT.
Long answer: NTT Communications provides data services across the world. These services are focused on datacenter, cloud and on the networks that connect the various datacenters across the world. NTT is the second largest IP backbone provider across the world. So, it was a natural extension to set up the network services arm in India. Netmagic is a managed hosting company that is focused on datacenter and co-location cloud services. But we also have an ISP license to provide Internet connectivity because it is required for our datacenter customers.
NTT acquired a domestic long-distance license (NLD) and that was primarily to interconnect the various branches within India using MPLS connectivity. There is a subsidy of NTT Com called NTT Communications India Network Services (NTTCINS), that has both the NLD and ILD licenses. A multinational company hosted in India would require international circuits as well.
So now Netmagic can also provide network services to its customers through NTTCINS. That puts Netmagic in a position to offer the full bouquet of services: datacenter, colocation, managed hosting and cloud services – along with network services (ILD or NLD).
We also host infrastructure for MNCs that need connectivity to their global offices. This connectivity will be provided by NTT.
Q. What are your plans for the delivery of network services in India?
Sharad Sanghi: In Phase 1, we are immediately targeting around 350 Japanese multinationals who are in India. We see this in the automobiles sector, for example. There are more than 12,000 companies with India-Japan relations and there are several Japanese companies looking to set up a base in India. But that doesn’t limit us to just doing this for Japanese customers.
Q. How would your current customer base benefit?
Sharad Sanghi: Netmagic sales team might offer the NTT offering as well to the customer but leave the choice to the customer. We have been carrier neutral and provide access to all carriers. A customer of ours could connect their branches to us with fiber from any of these carriers or a combination of these.
Some customers may want a one-stop shop and we can fulfill it using the NTT license. The customer will have to sign multiple contracts but it will be with the parent company, if you will. One single person (from our company) can offer a datacenter or cloud contract or an NLD/ILD contract.
Q. So now your customer doesn’t have to deal separately with Tata, Vodafone or Airtel?
Sharad Sanghi: Yes, he doesn’t need to. He will decide how the relationships with Tata, Airtel or Vodafone are and he can continue those relationships. As far as Netmagic is concerned, we are not going to say that we will only work with Tata or Airtel. The customer should decide what is best.
There will be several factors that customers will consider when choosing their network provider for both domestic or international connectivity. One could be feasibility of network, and the provider will need to have his fiber there.
The second factor could be cost competitiveness.
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