Indian business juggernaut Gautam Adani is now all set to test his fortune in the field of enterprise data storage industry.
With the recent debate, discussion, and deliberation over the subject of Data localisation and data storage, now also backed by the proposed draft “THE PERSONAL DATA PROTECTION BILL, 2018”
Mr. Adani seems to have sensed an opportunity for a potential multi-billion dollar market here. If the proposed law goes through “it will explode data storage requirements, and that will need capacity,” Adani said in a rare interview in New Delhi. “This will be a multi-billion-dollar project that will bring in the Googles and the Amazons of the world.”
The Bill, which sets out how the personal data of individuals is processed by the government and private entities incorporated in India and abroad, As in other infrastructure businesses, by expanding into data centers, the businessman would be entering a space that demands large investment. He would also have to contend with competition from any other large Indian players who decide to make a big push into the industry.
A draft of India’s 2018 Personal Data Protection Bill mandates the storage of personal data on a server or in a data center located in the country, citing the need to protect the autonomy of individuals and their personal data. The bill is due for lawmakers’ approval.
“The concerns over data security are fueling the need for countries to demand localization of data and India being a growing economy, I don’t expect global data giants like Google, Amazon or Alibaba to overlook this market,” said Apalak Ghosh, industry manager for digital transformation at Frost & Sullivan
While that would offer a big business opportunity for service providers, the need for real estate would mean that investments could run into “billions of dollars,” Ghosh said.
Currently, the data storage industry is dominated by American giants such as Dell EMC and HPE (Hewlett Packard Enterprise). The next-generation data storage market is estimated to grow from USD 56.8 billion in 2019 to USD 102.2 billion by 2024 at a CAGR of 12.48%. The major drivers for this market include the massive growth in digital data volume; proliferated use of smartphones, laptops, and tablets; growth of IoT market; and increasing penetration of high-end cloud computing.
This would act as a Shot in the Arm for current subdued employment trends in the country and will also prove to be a gateway for billions of dollars’ worth foreign investment. With current trade tensions between several global powers and stakeholders, the future growth prospects in commodity and merchandise market seem uncertain. Against such a backdrop an active interest from local companies and the facilitation role of government will be crucial to realise the Vision of turning India into a dominant global power in the Information Technology Industry.