Microsoft to offer cloud services in India, to set up 3 local data centres

Microsoft on Tuesday said it will offer commercial cloud services from local data centres in the country by 2015 as the technology giant gears up for the estimated US $2 trillion domestic market opportunity against competition from rival firms like Google and IBM.

The Richmond-headquartered software major said it will set up 3 data centres in three cities in the country by the end of 2015.

"Last year, our cloud business in India grew over 100 per cent. 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 in the national capital.

It is Nadella's first visit to the country after assuming the chief executive position at Microsoft.

Nadella, who is Microsoft's third CEO after Bill Gates and Steve Ballmer, added that cloud computing services in the country was a US $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."

The Microsoft CEO said a world-class (cloud) infrastructure will help revitalise productivity.

The company 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.