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Last Updated : Mar 26, 2018 08:11 PM IST | Source: Moneycontrol.com

Netmagic to invest in cybersecurity

According to research firm Gartner, India became the second fastest growing market in Asia Pacific last year. The current data centre market in India is valued at USD 2.2 billion

Neha Alawadhi @alnehaa

Cloud and managed services company Netmagic, which has data centres and provides cloud hosting services, is looking to increase its investment in cybersecurity in wake of increased cyber attacks and massive data leaks that are affecting nearly all sectors in the world.

“There are at least four new services that we’re planning this year, (and) we’re going to be doubling our security operations centre this year, which means increased investment in capital expenditure and in hiring people,” said Sharad Sanghi, CEO, Netmagic.

According to research firm Gartner, India became the second fastest growing market in Asia Pacific last year. The current data centre market in India is valued at USD 2.2 billion, and is expected to touch USD 4.5 billion by 2018. The main drivers for this huge increase are growth in data and digital intelligent devices, digitalisation and also the government’s Digital India campaign.

Talking about the increasing cybercrimes and the still-in-the-works data protection framework, Sanghi said he hopes the new regulation is minimal, flexible and does not prove to be a deterrent for doing business.

“The reality is that we’re going to get hit by cybercrimes that are unbelievable, millions of people’s personal data getting leaked out... there are going to be leakages of customer data, which has also started happening in India and there has to be some way of providing some deterrent. Europe has taken a lead and come up with GDPR becoming effective I May and has heavy penalties,” he said.

The General Data Protection Regulation is a data protection regulation that places heavy penalties on organisations that do not secure customer data and provides heavy penalties for an organisation failing to report a data leak within a stipulated time.

The Internet of things and smart devices increasing and other new technology leading to an explosion in data storage is creating demand for services provided by Netmagic.

In addition, Sanghi said the company was seeing demand from banking and finance, especially the  new payment banks, disaster recovery regulations for the banking and financial services sector, and brokerage houses.

Netmagic, which is majority owned by NTT Communications, is also shifting focus from being a cloud and managed services firm to the large coloctaion market, which is growing very heavily in India. Netmagic has now “got the muscle to focus on large colocation customers", Sanghi said.

A colocation provider rents out space in a data centre in which customers can install their equipment, but will also provide the power, bandwidth, IP address and cooling systems that the customer will require in order to successfully deploy their server, as explained by Interoute.

According to Markets & Markets, the data center colocation market is expected to grow from USD 31.52 billion in 2017 to USD 62.30 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 14.60 per cent.
First Published on Mar 26, 2018 08:08 pm
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