Cloud firm Netmagic targets 29% revenue growth in FY 2019

Sangeetha Chengappa Bengaluru | Updated on February 07, 2018

Sharad Sanghi, Managing Director and CEO, Netmagic

Plans to hire 150 professionals this year

Cloud solutions provider Netmagic (an NTT Communications company) is targeting 29 per cent revenue growth in FY 2019, fuelled by demand led by BFSI, global hyperscale firms, IT/ITeS, manufacturing, media and government verticals.

The company plans to add 150 professionals to its team of 1,270 employees to support its expansion plans this year, a top executive told BusinessLine.

With 5 availability zones and 7 carrier-neutral, data centres comprising a total capacity of 6 lakh sq ft which is already operational in the country, Netmagic’s parent company NTT Communications is investing over ₹1,200 crore to double its capacity with two new data centres in Bengaluru and Mumbai to be operational in April.

The new data centres in Bengaluru (2.5 lakh sq ft), its second one in the city and in Mumbai (3 lakh sq ft) its fifth one in the city, will increase its total capacity to over 1 million sq ft across 9 data centres. The other two data centres are located in Noida and Chennai.

“Mumbai is the No. 1 data centre market in terms of customer adoption and Bengaluru is the second fastest growing market for us driven by demand from global IT/ITeS companies, start-ups and e-commerce firms. In fact, customers have already booked 60 per cent of Mumbai data centre and 40 per cent of our upcoming Bengaluru centre,” said Sharad Sanghi, Managing Director and CEO, Netmagic.

The company is hiring 150 professionals, including facility operators and systems administrators to run round-the-clock functions at the new data centres; professionals with security skills for its second Security Operations Centre coming up in Bengaluru and software developers skilled in Java, Python etc, for the Bengaluru development team.

Stating that the company has grown at a CAGR of 34 per cent over the last five years, Sanghi said the company will grow at 29 per cent in FY 2019 and will achieve a CAGR of 25-30 per cent over the next five years. Cloud (public, private, hybrid) contributes 44 per cent to the company’s revenue, co-location services contributes 42 per cent and the rest is from remote infrastructure management services to global customers.

The Indian data centre market has witnessed a lot of activity in the last two years with the entry of AWS in June 2016 and Alibaba Cloud last month. According to DD Mishra, Research Director, Gartner, the size of the public cloud market for end-user spending will be $2.5 billion during 2018 and will grow rapidly in India to $5 billion by 2021; the CAGR for public cloud services during 2016-21 will be approximately 30.9 per cent.

“Over the last few years, the groundwork has been done and adoption has increased with Indian customers understanding the nuances of public cloud. In addition, regulatory restrictions requires data to be stored locally, therefore, the BFSI sector has been a sweet spot for the cloud providers,” said Mishra.

Published on February 07, 2018

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