Having firmly entrenched itself as an ICT player for the Japanese organisations in India, with its acquisition of Netmagic Solutions, NTT Communications is now actively looking at becoming a single stop solution for the enterprise and SME customers in India and provide its data centre and cloud service capabilities in India. Masakazu Kobayashi, managing director, NTT Com talks to Sudhir Chowdhary about the company’s strategy to target the enterprise community and how NTT is creating the market differentiation. Excerpts:
What are the top priorities for NTT Communications India operations today?
We have a clear focus towards cloud and data centre business in India. Especially our collaboration with Netmagic is one of the big focus areas for us today. In the year 2012, we acquired Netmagic so now we are in an ideal position to provide data centre, cloud and network operations capabilities for the enterprise community, that are truly world class.
How does the company look at India’s data centre market today?
India’s data centre market is quite important for us, because we are trying to sell data centre services to the Indian companies and the multinational companies having presence in India. Today a lot of multinational companies require data centres to be based in India, so that is going to be very important and a key area of focus for us.
It is important to note that NTT is a Japanese company, and we started our operations to support Japanese companies having presence in India, but now it is not only about the Japanese companies but also the Indian organisations and the multinational organisations which have a presence in India. So we have been able to successfully expand our customer base today.
What are some of the offerings that NTT is bringing in this space?
We have our Nexcenter data centre service which is all about providing next generation ready IT infrastructure for the enterprise community.
Nexcenter is a global benchmark for delivering next generation data centre services. They cut across a lot of technological parameters like availability of services, SLAs, uptime etc and a combination of that for an enterprise end use, is what NTT Communications delivers worldwide. This is what we intend to roll out for the Indian enterprise.
Today’s enterprise are interested to go with minimum capex/opex and maximum return on investment model. How can NTT Communications help in this direction?
Firstly, we have the capacity to bulk purchase the resources from vendors and thereby we can reduce the opex for our customers. We offer cloud services which means that we can convert capex to opex for our customers. From our end, we can purchase capex and deliver opex for the customer. Secondly, we can reduce opex portion for the customers when it comes to handling maintenance of their network. Netmagic can have engineers working for the customer, so we can reduce their opex in this direction as well.
While cloud computing is surely the buzzword today, however, enterprise customers want to approach their IT with a personalised experience. What kind of cloud driven innovations are you bringing in to augment this?
Especially for applications such as ERP, every customer looks forward to create a personalised delivery model. We deliver this with the help of application integration. NTT Data focuses on application integration. So by leveraging our expertise in NTT Data and NTT Communications, we can deliver a completely next generation IT infrastructure for our enterprise customers. We can deliver standardised platform to our customers.
We have been through a long time in this industry and have seen the transition from physical hosting model to a completely virtualised hosting model. These services can be delivered in a public, private or a hybrid model as per the customer’s requirements.
How will NTT Communications offerings be different from what other competitors are offering to the enterprise community today?
In today’s scenario, some providers deliver co-location services, some deliver cloud. We at NTT Communications along with Netmagic are in ideal position to deliver—co-location, network and cloud services for our customers. This is how we are creating big differentiation in the market as with these services, we are in a better position to serve the specific needs of our customers.
What kind of investments are you likely to put in India over the next one year?
We have already invested over $200 million in our data centre business in India. We invested $100 million in the year 2012 as part of our acquisition of Netmagic and the rest $100 million was invested last year in 2014. Moving forward, we are committed to enhance our business prospects with Netmagic and create more opportunities.
Are you satisfied with the growth trajectory that NTT Communications has achieved in India?
We are quite satisfied with our growth progress in India. Especially after our acquisition of Netmagic, we have considerably increased our product portfolio. Now we have enterprise solutions around data centre, cloud, remote infrastructure maintenance, etc. This has opened up new growth opportunities for us.