10 December 2015 09:16:33 IST

Intel bets big on India data centre business

Sees increased demand from telcos and e-commerce firms

Chip-maker Intel is betting big on its India data centre business fuelled by demand from telcos, e-commerce firms, government and enterprises.

The company’s India data centre business, which contributed to 1 per cent ($145 million) of Intel’s total Data Centre Group revenues of $14.5 billion last year, is all set to witness a 50 per cent growth in the current fiscal.

Diane M Bryant, Senior Vice-President and General Manager, Data Centre Group for Intel Corporation, said: “India as a marketplace is a big growth opportunity for our data centre business. While India was slow in building infrastructure for the digital economy, this year it is finally taking off and we see a 50 per cent growth in revenues this fiscal, fuelled by demand from telcos like Reliance which are looking to decrease total cost of ownership of infrastructure and increase service agility by moving their networks to the cloud delivery model, as they build out 4G networks.”

Pointing out that e-commerce firms like Flipkart has grown its servers 10X over the last three years, Bryant said: “These are early indicators of the demand we expect to see from across industry verticals in India. We are also looking to ramp up our sales force by 8-10 per cent to match this growth opportunity.”

At a time when the PC market is shrinking globally, Intel is counting on its data centre business, which is its fastest growing and most profitable business, to drive its future growth. “Today, the Data Centre Group contributes to 30 per cent of Intel’s revenue of $55.9 billion and 60 per cent of its profits and will grow at 15 per cent CAGR over the next five years,” said Bryant, whose worldwide organisation develops the data centre platforms for the digital services economy.

Pact with C-DAC Intel signed an agreement to collaborate with C-DAC (Centre for Development of Advanced Computing) to train 20,000 developers over the next seven years to build applications for High Performance Computing, to enable India to be a part of the select league of advanced countries with the top supercomputing machines in the world.