The information is stored and processed on computers ‘in the cloud’ or the web instead of local servers. This data can then be remotely accessed through a personal computer, cellphone or any other device
The attractiveness of cloud-based applications across sectors, from hospitality to healthcare, is driven by ease of use and lower cost. Thi has led to India becoming a hub for young cloud computing companies.Chennai’s OrangeScape provides cloud solutions to firms like drugmaker Astra-Zeneca, consumer-goods company Unilever and automaker Ford.
In Bangalore, storage company Datagres, which sells data management products to large enterprises, was founded in 2010 by Srinivasan Viswanathan, an alumnus of Indian Institute of Science. He put in Rs.60 lakh as the initial capital to start the firm. Last Sept-ember, the company recieved first round funding of over Rs.10 crore from Nexus Venture Partners.
These young companies, which need less capital, are growing faster and are more profitable compared to traditional enterprise technology ventures.
The high rating for the sector also comes from some of the biggest exits for investors in this segment.
In the past 18 months, Mumbai-based Netmagic sold a majority stake to Japan’s NTT Communications for `900 crore while Citrix Systems paid over Rs.1,000 crore to acquire Cloud. com. Gluster, a cloud computing startup, was bought by Red Hat for about Rs.667 crore.
10-fold growth to $4.5 billion by 2015, from $400 million now (EMC and Zinnov)
Enterprises in healthcare, education, hospitality and financial services and government
How long to earn fi rst reveneus
1.5-2 years for product companies
OrangeScape, Datagres, CloudByte, Knowlarity, Aryaka, Hotelogix
There are world class product companies emerging from India in cloud computing that we are betting will become large businesses.
Co-founder,Nexus Venture Partners