Netmagic looks for a spell here

BENGALURU: Netmagic is growing above the market average and exploring the potential for new data centres at a time when the sector is growing strongly and drawing interest from private equity players, the company's CEO told ET.

The company, which is fully-owned by Japan's NTT Communication, offers public cloud services, co-location and managed services. The diverse strategy is key to fending off competition from global players.

“Our revenue has been growing at 34% CAGR over the past five years. But the cloud business is growing much faster than that. We are looking at new locations in Chennai and Mumbai, but we would need to sign a few term-sheets before firming up our plans,“ Sharad Sanghi, CEO of Netmagic, said. He declined to state the company's revenue saying that it would not be in line with NTT's policy.

Netmagic is already due to open two data centres ­ in Mumbai and Bengaluru ­ and has lined up anchor clients for the centres.

Anchor clients are impor tant as data centres are extremely expensive to build.Just the infrastructure cost, excluding the servers, comes up to Rs 25,000-Rs 30,000 a square foot. Data centres can be several hundred thousand square feet large.

According to Gartner, India became the second fastest-growing market in Asia-Pacific last year. The data center market in India is valued at $2.2 billion, and is expected to touch $4.5billion mark by 2018.