The document analyzes the future of data centers in India, highlighting current market conditions, growth forecasts, and customer demands. It indicates that India is poised to become a leading data center market, driven by decreasing bandwidth costs and increasing power density needs. The report emphasizes crucial requirements for infrastructure improvement and challenges, such as the necessity for dual power sources and robust disaster recovery plans, while projecting that Indian cities like Hyderabad and Bangalore will emerge as key disaster recovery hubs.

1. Future of Data Centers in India
Ctrl S Datacenters Ltd.
PS Reddy, CMD

2. Structure
CtrlS
• Present Situation
• Market Sizes
• Future Trends
• Implications of these Trends
• Customer Requirements
• Challenges
– IDCs
– DR
• Snapshot of the Future
• Ctrl S: Future Ready

3. Present Situation
CtrlS
• ~ 6,00,000 of third party IDC space
• 6 providers
• Largely Tier II and Tier III, no Tier IV
• Telco dominated, driven by bandwidth
costs
• Only primary data centers, not many
secondary or Disaster Recovery data
centers
• Most DR plans end with a tape backup

4. Present Situation
CtrlS
• Many user companies – esp. in the IT
sector – feel they know better than
outsourced service providers
• Mostly office buildings converted to data
centers
• Supply side problems
– No second source of power
– Stand alone buildings very costly

5. Market Sizes
CtrlS
CAGR
GEO-
GRAPHY
2006 2007 2008 2009 2010 2011 2012 2007-
2012
India 662 806 983 1,200 1,467 1,795 2,199 22.2%
Asia 8,135 8,905 9,812 10,887 12,168 13,705 15,558 12.9%
World 45,394 47,602 50,052 52,788 55,861 59,336 63,291 5.9%
SOURCE : DATA MONITOR ALL FIGURES IN $ MILLION

6. Market Sizes
CtrlS
India 2006 2007 2008 2009 2010 2011 2012
As % of Asia 8% 9% 10% 11% 12% 13% 14%
As % of World 1% 2% 2% 2% 3% 3% 3%
Asia 2006 2007 2008 2009 2010 2011 2012
As % of world 18% 19% 20% 21% 22% 23% 25%
SOURCE : DATA MONITOR

7. CONTRIBUTION - DIFFERENT VERTICALS
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Geography India World
VERTICALS 2006 2012 2006 2012
Financial Services 28% 33% 23% 24%
Manufacturing 25% 24% 21% 22%
Public Sector 11% 9% 15% 15%
Telecommunications 9% 11% 9% 10%
Retail, Wholesale and Distribution 8% 6% 10% 9%
Travel, Transportation,
5% 4% 6% 5%
Logistics & Hospitality
Energy and Utilities 4% 3% 5% 4%
Healthcare 4% 5% 5% 6%
Other 2% 2% 2% 2%
Life Sciences 2% 1% 2% 2%
Media and Entertainment 1% 2% 1% 2%
SOURCE : DATA MONITOR

8. Space Race – Asia Forecast
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New Space in Asia Data Centre Market – 2006-2010
SOURCE : BROADGROUP

9. Space Growth Rate - Asia
CtrlS
The Asian Data Centre market will increase by a compound annual growth
rate of 11.5% over the period from 2006 to 2010.

10. Expert Predictions
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• India, by far the most exciting market in Asia
• ~ 2 million sft to be added in India by 2010
• India to overtake Japan in Data Centers circa
2011
• Asia would account for a quarter of world Data
Center business
• India would account for 3% of the Global market
• In terms of verticals, Indian market not very different
• BFSI, Manufacturing & Public Sector 3 most
important verticals
• Telecom, Retail, and Travel & Logistics the next 3

11. Most Discussed Future Trends
CtrlS
• Increasing power density
• Consequent cooling challenges
• And cable management
challenges
• Energy Efficiency
• Green Datacenters
• Chilled water in data centers
• Non-IT equipment more
expensive than IT equipment

12. Less Discussed Trends
CtrlS
• Continuous decrease in
bandwidth price
• 50 new Telcos coming up in
India
• Software as a Service
• Global integration of Indian
business
• Global relevance of India

13. Bandwidth
CtrlS
• As bandwidth prices fall to about
$150 - $200 per Mbps per month,
India becomes an attractive
destination for hosting.
– Today we are at $500 - $750 per Mbps
per month
– It was at $2000 - $2500 per Mbps per
month, three years back
– How long will this take? 2 years?
– Current US rates are about $100 per
Mbps per month

14. Monthly Total Cost, $ / Rack
10,000
9,000
8,000
7,000
6,000
Dollars
5,000
4,000
3,000
2,000
1,000
-
2007 2008 2009 2010 2011 2012
India - 10 kW USA - 10 kW

15. Monthly Total Cost, $ / Rack
4,000
3,500
3,000
2,500
Dollars
2,000
1,500
1,000
500
-
2007 2008 2009 2010 2011 2012
India - 3 kW USA - 3 kW

16. Bandwidth
CtrlS
• As bandwidth prices decrease, many
more applications and deployments
would make business sense within
India.
• Power will cost more than bandwidth
• On the demand side, broadband will
become ubiquitous, support a new
level of information intensity, driving
up the demand for content-heavy
applications

17. New Telcos
CtrlS
• With new Telco licenses, even after
consolidation,
– Effective competition would increase
– Demand for third party IDC space, ideal for
exchanges, would also increase
• Increased competition
– Reinforces the downward trend in bandwidth prices
– Telco domination of 3rd party IDCs would end
– Everybody would be forced to offer multiple carriers

18. SaaS
CtrlS
• SaaS would be firmly established due to
– Improved reliability of infrastructure and applications
– Better and cheaper connectivity
– Increased efforts against piracy, locks, and
unreasonably high prices
• Most of the future software products would
actually be a service
• SaaS providers requirement of IDCs would be
much higher

19. Globalisation
CtrlS
• Global integration of Indian businesses would continue apace
– Supply chains Would become more
– Distribution networks and customers global less local
– Competition
• Global benchmarks would be adopted
– For quality, systems, processes, best practices
• As a result, IT systems would be moved:
– From server rooms to IDCs (Ex: Public sector banks)
– From internal resources to specialists (Ex: Bharti, now Vodafone)

20. Global Relevance of India
CtrlS
• BRIC countries are the future giants: Goldman Sachs
• Trillion dollar economy: India would soon be in the top
ten economies of the world.
• Indian companies are acquiring companies abroad
• Practices, Systems, Infrastructure on par with the best in
the world
• India: Preferred global supplier of IT Services

21. Implications
CtrlS
• Falling bandwidth • Explosion of Data Centres
prices in India
• 5 or 10 times more than
• 50 new Telcos currently expected
• India would emerge as the
• Establishment of SaaS Data Centre and Disaster
Recovery capital of the
world
• Globalisation – Strong, stable democracy
– Rule of Law
• Growing Indian – Cost effective
Economy – High quality
– Abundant manpower
– Proven delivery model

22. Customer Requirements
CtrlS
• Think of a global customer, not an Indian customer
– 3 kW per rack x 24 kW / rack + √
– N + 1 Redundancy x N + N Redundancy √
– Critical load on UPS x Uninterrupted Cooling √
– 99.6% uptime SLA x 99.9% min. √
– IDC in office building x Purpose designed facility √
– Single power source x Two power sources √
– One bandwidth source x Two or more √
– 8 week set up time x Days, not weeks √
– Single Data Centre x Primary + Secondary (DR) √
• Requirements will go beyond the above
• Emerging Challenges will demand new solutions

23. Cooling Challenges
CtrlS

24. Higher Power Density
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• Cooling as critical as • Uninterrupted cooling
power • Temperature rise
• Redundant cooling during generator start
time (20 s)
required
– 3 kW / rack: 1 c
o
• N + N, not N + 1 – 24 kW / rack: 30 oc
• In both outdoor and • Chilled water reservoir
indoor cooling units alone would not suffice
• UPS powered indoor units
required

25. Power Sources
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• Customers will insist on 2 power sources
• Sub-optimal solution: In existing situation
– Dedicated power cable
– 2 Sub-stations of utility
– Each Connected to at least two different power plants
• Optimal Solution
– Set up a in-house power plant
– ITPL, Bangalore is already doing it!

26. Disaster Recovery
CtrlS
• DR Plan mandatory Action Plan
• Ctrical component: Secondary Data Centre or a
DR Data Centre
• Ideal Location

27. Nothing but the Ideal Location
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• No Natural Disaster • No man-made Disaster
– Earthquake – War
– Floods – Civil war
– Cyclones – Terrorism
– Landslides – Fire
– Volcanic eruptions – Industrial Accidents
– Tsunami – Epidemics
– Tidal Waves – Strikes
– Hurricanes – Looting
– Tornadoes – Arson
– Wildfires – Transportation links breakdown
– Blizzards – Communications links disruption

28. Key Challenges
CtrlS
• N + N redundancy in cooling
• Uninterruptible Cooling
• 2 Sources of Power
• Critical examination of location
• And, more

29. Snapshot of the Future
CtrlS
• Nuclear proof Data Centre
• Measured in acres, not square feet
• Power plants, not DG sets
• Human-proof dark data centers
• Data Centres would not be Telco driven
• Data Centres would host Telco switches
• Infrastructure Management would be
a major practice of all Indian IT companies
• India: IDC and DR capital of the world

30. Snapshot of the Future
CtrlS
• Disaster Recovery Plans would be widespread
• All major companies would have a primary data centre backed by a
secondary data centre for Disaster Recovery
• Hyderabad and Bangalore would be the DR Locations of choice
• Detailed and tested Business Continuity Plans would be in place

31. Hyderabad – A Favorable DR Location
CtrlS
– No risk of
• Cyclones
• Storms
• Tidal Waves
• Tsunami
• Floods
• Volcanoes
• Etc.
– Rainfall
• Highest in 130 years is 254 mm in one
day
– Least prone to earthquakes in India
– Away from potential war zones
– Availability of skilled manpower
– Peaceful, law-abiding, cosmopolitan city

32. About Ctrl S
CtrlS
• Promoted by a 15 year
old group
• Group Investors include
major financial institutions
– Och-Ziff Capital, the world’s
5th largest fund with $31
billion of unleveraged funds
under management
– IDBI Bank, one of India’s
largest financial institutions

33. About Ctrl S
CtrlS
• Rolling out Tier IV Data Centres
across India
• Spread over 7 Lakh square feet
• Focused on Disaster Recovery
• DR and Business Continuity
seats in multiple locations
• Pilot operational in Hyderabad, India

34. About Ctrl S
CtrlS
• Current customers include
– A large $125 bn global Telco major
– A multinational manufacturing conglomerate
– A pan-Asia VPN service provider
– Manufacturing companies
– Content companies

35. CtrlS
Questions?