Microsoft to set up data centre in India; eyes $2 trillion cloud market

Microsoft today said it will offer commercial cloud services from local data centres in India by 2015 as the tech giant gears for competition for the estimated $2 trillion domestic market opportunity from rival firms like Google and IBM. The Richmond-headquartered firm said it will set up 3 data centres in three cities in India by the end of 2015.

"Last year, our cloud business in India grew over 100%. Buoyed by that success we have now decided to offer cloud services from local data centres. This will help us make global infrastructure and make that available to local data centres," Microsoft CEO Satya Nadella said here. It is Nadella's first India visit after assuming the top job at Microsoft.

The company's third CEO, after Bill Gates and Steve Ballmer, added that cloud computing services in India is a $2 trillion market opportunity. When asked about the investment, Nadella said: "I can't give you a specific amount but as we get started you will see the scale. The initial footprint itself will be quite high." He said a world-class (cloud) infrastructure will help revitalise productivity.

Microsoft said that it will establish 3 data centres in three cities in India to be established by the end of 2015.

Microsoft India chairman Bhaskar Pramanik said: "By offering out cloud services through local data centres, we can help make Digital India a reality. This opens new possibilities in e-governance, financial inclusion, healthcare and education."

Greyhound Research CEO Sanchit Vir Gogia said Microsoft's business is an interesting mix between reach and depth - reach via WindowsOS and depth via Enterprise relationships. While Microsoft has surely missed the mobility curve, it still remains to be a formidable player in Cloud and Platform arena, he added.