Friday, 30 January 2015

Indian firms finally open up to startup cloud products

For a long time, Indian startups that offer their software solutions for enterprises on the cloud have had to look overseas to find customers. Not anymore. The need to stay on top of the game and a greater trust on cloud-based products are making reticent Indian firms turn to startups.
Earlier this year, for example, Bengaluru-based EnCloudEn, which provides private cloud infrastructure software developed with open source tools, got biotech major Biocon as its customer.


"People are slowly realizing that it is in their advantage to be taking solution from startups," said Abinash Saikia, 28, who co-founded EnCloudEn in 2012 with his IIT Madras college mate Satya Kishore. The firm targets $1 million in revenue next year. EnCloudEn's deal with Biocon — which Saikia claimed was the largest in the private cloud infrastructure space in the country so far — reflects an increasing trend among Indian companies to go for purpose-built cloud-based enterprise products from startups instead of solutions of large companies.

Experts see this trend of big companies going for cloud-based solutions to speed up in the coming days. "I see it happening much rapidly. The scale is bigger, the pace of migration much faster," said analyst Jayant Kolla of research firm Convergence Catalyst. Sharad Sharma, founding member of software product think-tank iSpirt, said large companies have always resisted cloud-based products, under the premise that their data might be compromised, if hosted on third-party servers. "That resistance is coming down every year," he said. "A lot more proof-of-concepts/demos are happening."

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