1. The value proposition of cloud is very strong: A S Rajgopal

The value proposition of cloud is very strong: A S Rajgopal

We have invented an architecture which is our IP and this allows us to add capacity at the click of mouse

By: | Published: May 25, 2015 12:11 AM

NxtGen Datacentre & Cloud Technologies, the three-year-old Bengaluru headquartered IT infrastructure services company has achieved a new benchmark by outperforming the global cloud services providers like Amazon and Rackspace on the price-performance metrics. This performance evaluation was done by US-based Cloud Spectator, a third party performance and pricing analysis expert.

AS Rajgopal, MD, NxtGen, tells PP Thimmaya that this report has given them a confidence boost and the company now plans to make a strong foray into newer geographies outside India. Excerpts:

What is the price to performance benchmark which NxtGen has achieved?

Normally what happens when one puts a very big engine and delivers lot of power, the engine will blow a lot of cost. If somebody wants to beat any benchmark, normally one can do by spending a lot of money. However, it is important to beat somebody at a cost that is acceptable to the end customer and this is what price performance does. If the price is more or less or equal and performance is more then you get a better score. With respect to Amazon, our costing is roughly 40% lower but we scored three to four times better than them and this is price to performance index.

There are typically four types of workload which are used in the web. One is really is simple web server, where customer wants to save money and it is not really about performance, second is high traffic website, third is a typical data base and lastly there is cluster data base where one can always retrieve when any information is lost. These were four instances of various configuration that were picked up and tests done by Cloud Spectator. Across all types of tests, we were three to four times better than Amazon and Rackspace. These third party reports are used by enterprises to make a decision.

How did NxtGen achieve this standard?

We have invented an architecture which is our intellectual property and this allows us to add capacity at the click of mouse. This is not done by most of the Indian cloud services provider. We worked on the technology and have everything run by software deployed on a traditional hardware. Today we can provide all the functions through our software to give more load with superior performance and at a lower cost.

Are NxtGen’s cloud and data centre solutions scalable?

Yes. The difference vary across sectors. For example for banks their biggest requirements are security and compliance. The healthcare sector has different requirements. We handle the genome sequencing for certain government departments. Many of the companies are data hungry and our architecture is very flexible which enables us to run many types of workload at high performance.

What benefits are accrued by NxtGen through this third party report?

This gives a lot of confidence to the customers as a third party report helps them make the choice. The good thing about cloud is that one is never tied to a particular vendor and the entry cost is low. The report by Cloud Spectator gives us the confidence that we can do it and the decision making processing becomes faster. We have been working hard and our hands very full.  Our new investor which is a World Bank affiliate—International Finance Corporation (IFC) has lot of interest in propagating this IT infrastructure development in developing countries. Most of them cannot pay in dollars but they want high value. We are planning to enter into countries such as Sri Lanka, Vietnam, Indonesia.

How do you see the cloud and data services market in growth markets?

It is not very widespread deployment yet as customers have been buying hardware for many years now and want to get returns on their investments. The penetration is very low so the opportunity is very high. The value proposition of cloud is very strong and the more we educate the customers, it is better. The money customers save by not investing in hardware can be used in buying better software. It is also commonly misunderstood that adopting cloud means all applications should be cloud aware, but this is not the case. There is the second thing about security, but customers need to understand they are able to get the same, if not better service through a cloud services player and at a lower cost.

What are NxtGen’s future plans?

We are doing a few things differently. We are the only one in the world who provide cloud services either at customer premises or at our own data centres. We are taking this model to others across the world.

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