STT GDC India has established ways to solve data center challenges, CIO News, ET CIO

By Vanshika Sharma

The booming Indian economy lays a solid platform for the development of the global market. This growth is the result of an underlying enhanced digitalization dynamic, connectivity, a cashless economy and a thriving startup environment fueled by innovation. A fundamental transformation in the way end users perceive and consume data has occurred, driving a game-changing opportunity for all stakeholders in the IT infrastructure ecosystem, with maximum long-term benefits.

Since India is a developing country with a rapid population boom and fast internet connection, data consumption is constantly increasing, which suggests that India will become the fastest data consumer in the world by now. a few years. However, the increase in demand leads to an increase in the problems of the industry.

“Demand for data center capacity is growing rapidly, while supply is trying to keep up. Building a data center is a lengthy process, and supply chain disruptions, availability of resources (equipment and people), customs clearance of imported equipment, and delays in the delivery of electronic components add to the delay. . Customers also focus on player stability, as players have an established overall ecosystem. Therefore, I don’t see a demand challenge in this industry for the next two to three years, but I see supply as a barrier,” says Milind Kulkarni, SVP Corporate Strategy, Government Relationships, Digital & IT, STT GDC India.
According to Kulkarni, the offer is evolving in terms of establishing data centers, ensuring the accessibility of electricity and other resources and ensuring that projects include sustainability and the use of green energy. Thus, they have begun to deploy renewable energy through captive power generation structures that offer clean and reliable power in close partnership with established energy players.

Facing the disruption in the time of Covid, he says: “A challenge we had faced during the initial period of Covid was to provide new green capacity. Initially, we had days where we weren’t able to deliver new projects on time, which before the pandemic was never an issue. Sometimes equipment was delayed, sometimes permissions were delayed, which had a cascading impact on project implementation and delivery. »

Hence, they make sure that even though the market is growing rapidly with demand, the supply and availability of resources are still the focus. Thus, the project team initiated meticulous planning, proactive engagement with customers/partners to meet deadlines, expedite the ordering of long-lead items, and work closely with partners while engaging with local partners for a skilled workforce.

“We have taken many actions. We work with partners and give them projections of our needs for the next 6-12 months, as the equipment is coming from outside India, and ask them for faster delivery. In some cases, partners have stepped up due to our established business and relationships and temporarily provided us with different models of certain equipment until the latest equipment is available, especially in network and other areas. We are working with different ecosystems to ensure that where possible deliverables are shared on time,” he added.

With the peak of this hurdle, the delivery aspect of business models is expected to evolve. Kulkarni points out that in the next 2-3 years there will be a sudden increase in capacity, which will be two to three times the current one and will increase the pressure on the top line.

“This will lead to new business discussions and enable different business models to serve customers. Customers will also learn and be better prepared over time, which will further increase demand,” he continued.

The most concentrated

In addition to supply disruptions, Kulkarni believes this is also a time to focus on availability and latency and be quick in making decisions.

“The reason for this is that sometimes a few ongoing projects can be delayed. But if my current base is not secure and the organization is not performing well in these difficult situations, establishing credibility is a major challenge. While ensuring other aspects, establishing business continuity even in these challenging situations and up to 100% uptime, is the first testimonial of any DC business,” Kulkarni said.

As STL has BFSI Industries customers and very large scale global customers, the break of a few minutes in my current operations would bring them millions of rupees in lost revenue. This is not only a loss for the current business, but it also impacts the reputation of the organization and future business.

To solve this problem, during a pandemic, the organization has launched the BCP (Business Continuity Plan) which has been prepared in advance for such a situation to ensure smooth operation and business continuity for customers. from an operational point of view.

With the introduction of new regulations around data centers, adds Kulkarni, regulatory challenges are an entire area that needs immediate attention where the number of authorizations and authorizations must be reduced, and a one-stop authorization framework. unique must be put into action to enable ease of doing business. You need a reliable electrical infrastructure. Additionally, allowing the dark fiber policy would also allow DC providers to support India’s burgeoning digital ecosystem.

“The Government’s announcement in the Union Budget 2022, granting ‘Infrastructure Status’ to data centers is an encouraging boost. This announcement will enable concerted efforts on multiple fronts, including 5G rollout, infrastructure development and policy reforms, will contribute to the creation of a broader and stronger digital ecosystem in India, providing a much-needed boost to the data canter industry as a whole,” says Kulkarni.

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