In­dian Firms Need to Run with Cloud & Hunt with Global Cos

Nu­tanix founder says In­dian com­pa­nies need to mod­ernise cloud in­fra to com­pete with Intl play­ers

The Economic Times - - Disruption: Startups & Tech - Shadma.Shaikh @times­group.com ON CON­SUMP­TION ON DE­LIV­ERY

Ben­galuru: In­dian en­ter­prises may have been late adopters of cloud tech­nol­ogy but this is likely to change soon, said Dheeraj Pandey, founder of Nas­daq-listed en­ter­prise cloud com­pany Nu­tanix, which is tar­get­ing the do­mes­tic mar­ket ag­gres­sively.

In an in­ter­view to ET, Pandey said that In­dian com­pa­nies such as ecom­merce firm Flip­kart and ride hail­ing ser­vice provider Ola will need to mod­ernise their in­fra­struc­ture to com­pete with global play­ers such as Ama­zon, which hosts its ecom­merce ser­vice on its pop­u­lar in-house cloud of­fer­ing Ama­zon Web Ser­vices (AWS). “One of the ar­eas where you will see a lot of com­pe­ti­tion (in the cloud mar­ket) is the ecom­merce sec­tor,” Pandey said. “In­dus­try play­ers have to com­pete with Ama­zon and mod­ernise. They don’t have the lux­ury of learn­ing lessons for 20 years the way Ama­zon did. They will prob­a­bly have to buy tech­nol­ogy to com­pete in the mar­ket.”

Our ap­proach will be very top-down — can we un­der­stand con­sump­tion mod­els, sub­scrip­tions... A lot of th­ese things are about how you con­sume com­put­ing

We need to get bet­ter at the ecomm metaphors and de­liver com­put­ing through those... If we do a good job at that, we will have a dif­fer­ent story

Ac­cord­ing to a quar­terly anal­y­sis by Syn­ergy Re­search Group posted in Oc­to­ber last year, Ama­zon Web Ser­vices held a 45% share of the world­wide pub­lic mar­ket for In­fra­struc­ture as a Ser­vice — greater than Mi­crosoft, Google and IBM’s shares com­bined. It gen­er­ated rev­enue of $12.22 bil­lion in fis­cal 2016 for Ama­zon, up from $7.88 bil- lion in 2015.

Nu­tanix, which works on a hy­brid cloud model that al­lows en­ter­prises to buy in­fra­struc­ture rather than rent it the way AWS does, is tar­geted at large en­ter­prises that can pre­dict their data cen­tre us­age es­ti­mate for longer pe­ri­ods, of three years for in­stance.

“Just be­cause you can rent an Uber doesn’t mean you will not want to buy a car,” said Pandey.

An en­ter­prise largely makes th­ese de­ci­sions on the ba­sis of its pre­dictable de­mands. Larger com­pa­nies, which can pre­dict their de­mands, even­tu­ally move from a rented pub­lic cloud to own­ing their own pri­vate data centres, Pandey said, cit­ing file host­ing com­pany Drop­box as an ex­am­ple that mi­grated from AWS to its pri­vate data cen­tre.

The pub­lic cloud, which al­lows com­pa­nies to rent in­fra­struc­ture and pay as per us­age, will re­main a pref­er­ence for mid-mar­ket com­pa­nies, Pandey said. But it will soon be com­pet­ing with a hy­brid cloud story, “es­pe­cially if we do a good job of ecom­merce”, he said.

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