The Business Case for Local Cloud Services

Chances are that you are already a consumer of cloud services in your personal and professional domains. From emails to productivity apps, all kinds of software are hosted and run on the cloud.

Cloud computing was an idea that was waiting to happen. All it needed was reliable, high-speed internet. In the past decade, as access to high-speed internet became widespread, the business of cloud computing boomed.

Cloud Computing Is a Big Pie

Cloud computing helps organisations cut costs on hardware, software, maintenance, and personnel, as well as deploy a wide variety of business applications that can be run from any location. Through technologies such as software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS), cloud computing offers organisations an efficient way to outsource all their computing needs.

Across the world, an increasing emphasis on digital transformation, transition to Industry 4.0, rising penetration of internet and mobile devices, and big data computing are accelerating the demand for cloud services. The global cloud services market, which stood at USD 229 billion in 2019, is expected to grow at an astounding CAGR of 22.3% to touch USD 500 billion by 2023. With Small and Medium Enterprises (SMEs) getting on the cloud bandwagon, the market size will expand exponentially in emerging markets.

The public cloud market is massive, but it is currently dominated by a few large players—called hyperscale cloud providers—such as Amazon Web Services, Microsoft Azure, and Google Cloud. Approximately 77% of the market in 2017–2018 was shared between the five giants—Amazon, Microsoft, Alibaba, Google, and IBM.

Chart by Visualizer

Source: Gartner

But that scenario is going to change soon because worldwide, there is an increasing push for data localisation, and hyperscale providers are not in a position to fill the gap.

Data Localisation Is Inevitable

It has been famously said that data is the new oil. Governments around the world are waking up to the significance of data as an asset class. The priceless intelligence that can be derived from data has led to a rush among governments to protect and control their citizen’s information: from their social media posts to their credit card transactions. Governments are quickly enacting data residency and data protection laws, which require that the data about a nation’s citizens be collected, processed, and stored inside the country. Out of 194 countries globally, 132 have already enacted some data residency or privacy legislation.

Chart by Visualizer

Source: UNCTAD.

This push for data localisation, combined with the fact that hyperscale cloud providers do not have their data centres in most countries, throws up an incredible opportunity for local telcos, ISPs, and data centre (DC) providers.

Customers Benefit from a Local Cloud

The competitive edge that an in-country cloud service can give makes it extremely attractive to customers.

Regulatory compliance: Hiring the services of a local cloud provider helps organisations comply with national data protection and data residency laws easily.

High-speed operations: Local DCs offer customers significantly lower latency (sub-10 ms) compared to Hyperscale providers (50–300 ms). This is a significant gain when one is running time-critical operations.

No forex shocks: In-country cloud services bill customers in the local currency. As a result, customers avoid foreign exchange fluctuations that are inherent in foreign currency billing of overseas providers. Customers can thus manage their working capital better.

Fast, personalised service: Local providers can deliver quick and more personalised services as well as tech support. There are limitless options for stacking technologies and customising price plans.

Local Telcos Have the Upper Hand

Telecommunications infrastructure is the backbone of the internet. With their rich technology expertise and strong local networks, local telecom and allied service providers have the upper hand when it comes to expanding into the in-country cloud business. Building and managing cloud computing services is a natural extension of their existing strength area. Compared to a new, non-local cloud service, local players can not only integrate and scale up faster, they can also provide superior last-mile service to their customers.

All you need is a reliable and competent cloud solutions partner who can help you create a world-class cloud services infrastructure.

IndiQus Is That Partner!

With more than 20 customers in 5 countries, spread across internet, BFSI, telecom, and services verticals, Apiculus is a leading provider of cloud solutions. Apiculus has enabled telcos, ISPs, and DC providers in emerging markets to build profitable in-country cloud solutions. We offer turnkey, SLA-based, fully managed solutions covering platform, technology stack, and business consulting. Our 360° solution, called apiculus™—covering cloud management portal, billing platform, underlying tech stack, and professional services—enables telcos and ISPs setup and run in-country cloud businesses with ease. Our customers have gone on to become the #1 cloud providers in their markets.

If you are a telco, ISP, or a DC provider, this is the right time to enter the local cloud services market, and Apiculus can help you do that—quickly, efficiently, and reliably.

Sunando Bhattacharya

Sunando comes from an IT services background, and has over 23 years experience with companies like Orange Business Services, Spectranet, Sify and NTT-NetMagic wherein he was responsible for Business Strategy, Sales, Alliances, Product Development and Pre-sales functions. At IndiQus, he drives the entire business strategy, and also leads the HR and Finance teams. Sunando did his SMP from IIM Calcutta.

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