Netmagic launches fifth data center in Chennai

Chennai: Netmagic Solutions announced the opening of its fifth data center in
Chennai. This new project forms a significant part of the company's
current expansion project within the hosted and managed services division.

Industry reports predict that revenues associated with the managed
services market will grow from nearly $30 billion in 2008 to nearly $43 billion in 2013.

“With enterprises facing issues such as manpower retention, the
deployment of complex applications thus causes issues like 24x7
monitoring, security, business continuity, etc along with the growing
need to provide quality services, both to customers and employees.
Outsourcing IT infrastructure is hence becoming a key driver to
survival. Understanding this burgeoning need, Netmagic has launched its fifth data center in the country,” explained Sharad Sanghi, CEO and MD, Netmagic Solutions.

A previous IDC India study pointed out that while the captive market
will grow only at a CAGR 16 percent, third-party data center market will
grow at a CAGR of 35 percent in the next two years. The study also
revealed that an increasing number of companies in these cities will opt
for third-party data center owing to benefits such as cost in terms of
power, skills, real estate, availability of power and skill and
maintenance of industry standards and accreditations.

“With many industrial businesses like automobile manufacturers, Chennai
posses a well-developed corporate community. Also Chennai is a strategic
location for our clients in Delhi and Mumbai from a disaster recovery
point of view. We have therefore made a substantial investment in there,
to the point where we now have our most energy-efficient hosting and
managed services present in the region,” said Sanghi.

This new 30,000sq ft data center is a milestone in Netmagic's growth
plans. Talking about the company's commitment to Chennai in terms of
investments and revenues, Sanghi added, “Chennai is a strategic market
for our company, in the medium term we are expecting 10-20 percent of
our revenue to come from this data center, as it will help efficiently
fulfil need of enterprises and SMB organizations in India for data
center space, ample power, connectivity and world class infrastructure.”

This is the latest of prominent announcements from the MSP which
recently became the first Indian managed services provider to foray in
cloud computing.