Software-ascendancy helps hardware development

Built-to-Order IT hardware, Data Centres in Pizza Boxes, Modular Data Centres and White Boxes – so much is changing in the so-called IT backyard of data centres. Amrish Pipada, CEO, Mega Networks Pvt Ltd gives us a whistle-top tour of this new engine-room and explains trends like modularity, indigenisation and the role of software here.

What have been the three big changes in the Indian data centre market in the last three or four years?

India currently holds the 13th position globally in the data center market, boasting 138 operational data centers, and CRISIL predicts a doubling of the country’s data center capacity to reach between 1,700 and 1,800 MW by 2025. This surge in data center expansion, a substantial leap from the current 870 MW capacity, can be attributed to several key factors.

Boasting 138 operational data centers, and CRISIL predicts a doubling of the country’s data center capacity to reach between 1,700 and 1,800 MW by 2025.

Firstly, from Service providers to Innovators: India’s data center landscape is transitioning from service providers to innovators, driven by the IT sector’s demands, the growth of the digital economy, and the government’s focus on RISC-V, providing opportunities for indigenous chip designs. Secondly, the exponential growth in data processing has exposed vulnerabilities, leading to increased adoption of advanced security measures, including Artificial Intelligence (AI), Machine Learning (ML), and the Zero Trust model. Lastly, the emphasis on green data centers aligns with global environmental sustainability goals, utilizing energy-efficient technologies and renewable sources to mitigate the ecological impact of data infrastructure expansion.

What’s your portfolio’s focus on? How much of the Make in India emphasis is reflected here?

The Make in India element reflects in everything we do as an organization, from our product portfolio to our associations. For example, our recent strategic partnership with Intel, underscores Mega Network’s vision in fuelling India’s tech ecosystem. In the heart of India’s flourishing business environment, where data centers, government initiatives, corporate infrastructure investments, and Generative AI are shaping the future, this achievement stands as a testament to the vision of establishing India as a hub for server OEMs and the broader tech ecosystem. The Mega Networks Pvt Ltd server offers extreme modularity, making it ideal for a diverse range of applications, including data centers, High-Performance Computing (HPC), and AI.

Hyperconverged Infra, data centre-in-a-box, Modular Infrastructure and White Box solutions—which of these trends are prominent in India? How well have they transpired on the ground?

Both the public and private sectors are intensifying their investments in infrastructure and advanced technologies. On closer inspection, you will see that the diverse demands for data infrastructure cut across different sectors. On the ground, a myriad of organizations, ranging from start-ups to multinational giants, across diverse sectors, are strategically positioning themselves for scalability, efficiency, and managing higher workloads.

For instance: a BFSI company implementing a private cloud infrastructure for its developmental and testing domains will need to opt for Hyperconverged Infrastructure, to seamlessly consolidate virtualized compute, storage, and networking resources into a unified platform. Similarly, when a retail chain ventures into establishing a new branch in a remote location, the adoption of a data center-in-a-box approach allows for the swift establishment of a self-contained IT infrastructure, requiring minimal space and resources while ensuring immediate access to critical applications.

Hyperconverged Infrastructure, to seamlessly consolidate virtualized compute, storage, and networking resources into a unified platform.

We are observing a significant increase or decrease in demand for Hyperconverged Infrastructure from various industries. The relatively new concept of Data Center-in-a-Box has been well-received, experiencing a substantial increase in adoption from organizations. Meanwhile, the enduring appeal of Modular Infrastructure and White Box Solutions persists, with demand continuing to rise significantly.

What specific needs and verticals have you observed while catering to Build-to-Order market?

The need for customization flexibility- allowing customers to tailor hardware to their exact specifications. In addition, rapid deployment is essential, ensuring that customized orders can be fulfilled quickly and efficiently. We have also observed a demand for tailored solutions for specific verticals, such as healthcare, finance, and education, where industry-specific hardware configurations are required. Lastly, a focus on scalability is critical, as businesses in the Build-to-Order market need hardware solutions that can adapt to changing needs and growth.

Is software going on the background as hardware emerges in the spotlight in India?

No, the emergence of hardware in the spotlight in India does not signify a diminishing role for software; rather, it highlights the integrated nature of hardware and software advancements. The ascendancy of software has been a catalyst for the surge in hardware development. Software remains integral to the elevation of hardware, there is no contemporary hardware that has less than 30 per cent software embedded in. The demand for hardware is intricately linked to software requirements, as every software application necessitates robust hardware for data storage, scalability, and seamless user experiences. This reciprocal relationship propels the growth of both entities. As the world becomes increasingly hyperconnected, the demand for hardware is poised to escalate further. This demand manifests in innovations such as AI chips, AI servers, high computing power, hyperconverged infrastructure, etc.

Software remains integral to the elevation of hardware, there is no contemporary hardware that has less than 30% software embedded in.

Traditional practices reveal that software has consistently outnumbered hardware. This discrepancy can be attributed to the relative ease of securing venture capital funding and achieving scalability in the software domain. Fundraising, historically challenging for hardware ventures, has experienced a transformative shift with government initiatives such as the Production Linked Incentive (PLI) scheme which has accelerated India’s hardware manufacturing trajectory. Aligning with the Make in India initiative, Mega Networks proudly stands as a recipient of India’s PLI scheme, poised to play a significant role in steering India’s manufacturing trajectory over the next 2-3 years.

What is going right, and what needs to be addressed with Make in India efforts?

The Make in India initiative has seen promising strides with high-profile investments, particularly in semiconductor manufacturing, signalling India’s emergence as a manufacturing hub. However, critical metrics such as the share of manufacturing in the gross value added (GVA), investments in manufacturing, employment generation, foreign direct investment (FDI), and exports of manufactured goods show persistent challenges. The shift in strategy, marked by fiscal policy instruments, introduces complexities in impact assessment, especially concerning smaller enterprises. Transparent intellectual underpinnings, coupled with rigorous evaluation mechanisms and careful consideration of both direct and indirect costs through cost-benefit analysis, are essential for effective policy implementation. The initiative’s success hinges on a nuanced understanding of macroeconomic impacts, emphasizing a dynamic and transparent approach for timely course corrections and sustained growth.

How practical and widely-adopted is the concept of sustainable/green data centres?

Data centres currently account for around three per cent of global electricity consumption, and this figure is anticipated to increase to four per cent by 2030, according to Vertiv, a global provider of critical digital infrastructure and continuity solutions. An average hyperscale facility consumes between 20-50 MW each year, which is theoretically sufficient to power as many as 37,000 households. Through the use of advanced cooling technologies, energy-efficient hardware, and the integration of renewable energy such as solar and wind power, these data centers aim to reduce carbon footprints and energy consumption. As the demand for data processing continues to grow, the emphasis on green data centers reflects a conscientious approach toward mitigating the ecological footprint of the rapidly expanding digital infrastructure.

According to Vertiv, a global provider of critical digital infrastructure and continuity solutions. An average hyperscale facility consumes between 20-50 MW each year, which is theoretically sufficient to power as many as 37,000 households.

Blades, Racks and Pizza Boxes: which server form-factor is going to ensure ahead and why?

The choice between server form-factors, including Blades, Racks, and Pizza Boxes, depends on specific use cases, scalability requirements, and efficiency considerations. Blades offer high density and modular design, suitable for environments with limited space and a need for easy scalability. Racks are versatile and commonly used in data centers, providing a balanced solution for various workloads. Pizza Boxes, or 1U servers, are compact and cost-effective but may lack some features present in larger form factors. The selection often involves trade-offs between space utilization, scalability, and cost efficiency. As technologies evolve, trends may shift based on factors such as power efficiency, cooling requirements, and the need for specialized configurations, influencing the preferred server form factor in different scenarios.

Amrish Pipada

CEO, Mega Networks Pvt Ltd

By Pratima H

pratimah@cybermedia.co.in