Airtel in exclusive deal with Savvis for managed service

Thomas K. Thomas New Delhi | Updated on February 07, 2011


Bharti Airtel has entered into an exclusive relationship with global enterprise IT solutions provider Savvis for offering managed and cloud services to enterprise customers.

As part of the deal, Airtel will resell Savvis' managed services product portfolio in India on a revenue sharing basis. Savvis has also agreed to lease capacity at Airtel's data centre in Bangalore.

Speaking to Business Line, Mr Drew Kelton, President, Enterprise Services, Bharti Airtel, said, “We have been taking a number of initiatives over the past months including a partnership with VMware last year for offering virtualised infrastructure. Managed IT services was one area which was missing in Airtel's business pie, which is why we have decided to partner Savvis.”

“Managed services in India is growing at 20-40 per cent CAGR and the current Managed IT market in India is about $6 billion out of which cloud services is over $80-100 million in 2011-12. We see a huge potential for ourselves in this market with this partnership,” he added.

Establishing presence

Recognised as a leader in Gartner's Magic Quadrant, Savvis offers a host of cloud infrastructure and hosted IT solutions. This partnership is the first step for the US-based company towards establishing a presence in India.

“We have been looking to enter the Indian market for some time now. The partnership with Airtel gives us an excellent platform to address the needs of our international customers here. This collaboration enables us to leverage Airtel's existing infrastructure and customer reach,” Mr Jim Ousley, Chairman and CEO of Savvis told Business Line.

The services will be rolled out through the Bangalore data centre in early 2011 with future expansion into other Airtel data centres located in New Delhi, Pune, Mumbai and Chennai.

Airtel has been aggressive on its enterprise communications business over the last year. Apart from Indian corporates, Airtel is now looking to get more business from multinational companies, which currently accounts for just 25 per cent of its business. It has recently struck alliances with a number of global players including VMWare, Cisco and EMC to enhance product offering.

Published on February 07, 2011

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