“SMBs have now started to embrace cloud services”

India, like the rest of the world, is seeing a massive uptake of various flavours of Cloud. How disruptive is the trend for variants like vertical, custom, and sovereign Cloud?

India’s uptake of various Cloud flavours like vertical, custom, and sovereign Cloud is highly disruptive. These trends are driven by the demand for data localisation and industry-specific solutions.

The success of these variants depends on how well Cloud providers can address the specific needs and demands of different industry verticals. Enterprises are realising that focusing on core competencies and adopting advanced Cloud solutions is preferable to developing or buying costly technologies. As technology rapidly evolves, service providers investing in R&D can offer new-age Cloud solutions, benefiting enterprises through a commercial Cloud service model. The future of Cloud computing is likely to be shaped by these disruptive trends, impacting various sectors and business models.

What about 5G, Private LTE, Edge, and decentralised Clouds? Will these forces also bring about significant change?

Technologies like 5G, Private LTE, Edge, and decen-tralised Clouds are expected to bring about significant changes in the industry. Decentralised Cloud and blockchain are becoming essential for enterprises to secure their applications, data, privacy, security, and accessibility controls.

LTE technologies make it possible for service providers to offer low-latency private cellular networks low-latency private cellular networks. Edge computing allows data processing and storage to be closer to the end user, reducing the need to transfer large amounts of data to central Cloud servers. This facilitates real-time processing and response, enabling time-sensitive Cloud applications like IoT and autonomous vehicles.

Decentralised Cloud and blockchain are becoming essential for enterprises to secure their applications, data, privacy, security, and accessibility controls.

While these technologies are already showing promise, the industry is still in its early stages, and widespread use case adoption may take some time.

In the changing scenario, what advantages can telcos offer with their Cloud offerings? Are there any gaps that telcos should worry about?

Telco Cloud solutions provide seamless integration with emerging technologies like 5G, Edge computing, and IoT, enabling operators to deliver innovative services with enhanced capabilities.

However, Cloud services have not been a primary focus for telcos, leading to the continued dominance of the Big 3 Cloud players. While telcos have the advantage of offering integrated Cloud infrastructure and network services, there is a need for significant investment in the industry to match or surpass the offerings of the Big 3 in terms of Cloud computing, infrastructure, and network integration. Closing this gap is crucial for telcos to establish a compelling proposition in the Cloud market.

Can bundled offerings and collaborations between telcos and technology companies create new solutions and gains for enterprises?

Yes, as enterprises increasingly recognise the significance of single Cloud to multi-Cloud or native Cloud applications for supporting and scaling their businesses, the collaboration between telcos and tech stack providers to offer enhanced Cloud infrastructure will undoubtedly be a welcome move.

In that case, should telco Cloud players consider adopting the same pricing and instance-usage model as used by hyperscalers?

Pricing should be based on the product value being offered and how efficiently it solves specific problems. There is a great scope for product innovation and pricing as well. One model may not suit all. Adopting the same pricing and instance-usage model as used by hyperscalers such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform is not a straightforward decision for telco players. It depends on various factors, including the nature of their business, customer base, infrastructure, and overall strategy.

Having said that, it is also important to note that the pricing models of hyperscalers are well-established and widely understood in the Cloud computing industry. Adopting similar models could make it easier for customers to understand and compare services across different providers. Also, emulating the pricing strategies of successful hyperscalers might help telcos remain competitive in the market, especially if customers are already accustomed to and prefer this pricing approach.

The flip side is that telcos may face challenges due to differing infrastructure costs and business models. Hence, implementing this pricing model without adjustments may not be feasible or profitable for them. Additionally, specific regulations governing telecom services in different regions and countries can impact the structuring of pricing models. Transitioning to a new pricing model can be complex, especially if existing contracts and billing systems are incompatible with the hyperscaler approach.

In summary, while there are benefits to considering hyperscaler pricing and instance-usage models, telcos must carefully evaluate their unique circumstances, customer base, and long-term objectives. Some elements of hyperscaler pricing models may be adaptable and beneficial, but a full-scale adoption would require meticulous planning and consideration of the specific dynamics within the telco industry.

To sum it up, what key changes strike you the most across sectors in India’s growing Cloud market?

The Cloud market in India has witnessed significant changes. Firstly, the CPaaS or Communication-Platform-as-a-Service market has experienced consolidation, as players unite to enhance operational efficiency and expand their market presence. Secondly, leading CPaaS players, with robust infrastructure and scaling capabilities, are exploring international markets for growth beyond India. Additionally, the industry has taken proactive steps against fraud and phishing messaging, deploying solutions on both enterprise and telco fronts to ensure security and user protection.

Furthermore, large enterprises are increasingly confident in adopting cloud services for communication strategies, and industry-specific clouds tailored to specific verticals have emerged. While startups have a proven record, SMBs have now started to embrace cloud services for various business processes, support, and marketing. Additionally, there has been a surge in transactional messages, fuelled by UPI, mobile banking transactions, and Two-Factor Authentication (2FA) messages.

Nitin Singhal, Managing Director, Sinch India