Tata Communications Bets Big on AI-Powered Cloud: Will the Hyperscaler Monopoly be Disrupted?

Cloud adoption continues to boom, 70 per cent of enterprises are yet to move on the cloud as claimed by Tata Communications. And most of the remaining enterprises are drowning in rising costs and complex multi-cloud operations. Can Tata Communications' Vayu Cloud break this cycle?

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Minu Sirsalewala
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Tata Communications has launched Vayu Cloud, an AI-powered multi-cloud platform designed to solve enterprise pain points, offering cost optimization, security compliance, and a seamless AI-driven experience. But in a market dominated by AWS, Azure, and Google Cloud, how does Vayu Cloud stand out?

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Breaking the Multi-Cloud Maze: How Vayu Cloud Aims to Simplify Complexity

The enterprise cloud journey is far from straightforward. According to Tata Communications MD and CEO, A.S. Lakshminarayanan, only 20-30 per cent of cloud adoption in India is fully realized, while 60-70 per cent of enterprise workloads remain on-premise. “Vayu Cloud is designed to bridge this gap by offering a unified infrastructure that seamlessly connects on-prem, edge, private, and multi-tenant public cloud environments.”

Unlike hyperscalers, which operate in "walled gardens", Vayu Cloud claims to provide cross-platform interoperability, allowing enterprises to move between different cloud ecosystems without vendor lock-in. This modularity is a significant differentiator, as multi-cloud strategies continue to gain traction across industries.

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The Real Cloud Challenge: Cost, Security & AI – Can Tata Solve It?

One of the biggest pain points in cloud adoption is cost unpredictability. Enterprises often start their cloud journey with enthusiasm but quickly find costs spiralling out of control. Bhaskar Gorti, Executive VP of Cloud and Cybersecurity Services, shared insights from his discussions with global CIOs, who noted that effective cloud cost management demands a dedicated team of six to ten professionals tracking expenses daily.

He mentioned that Vayu Cloud tackles this by embedding financial operations (FinOps) and AI-driven cost optimization tools, ensuring enterprises can scale AI workloads without cost overruns. Tata Communications claims that their price-performance optimization brings a 30% cost benefit compared to traditional cloud models.

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Built for AI: GPU Scalability and AI Studio

With AI workloads exploding, cloud infrastructure must be designed to support high-performance AI models, Large Language Models (LLMs), and real-time inferencing. Vayu Cloud is built with:

- Scalable GPU infrastructure to accommodate enterprise AI demands. On-demand access to NVIDIA GPUs.

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- An AI Studio and Model Garden that allows businesses to develop, train, and deploy AI models using open-source and proprietary frameworks.

- Workload-specific optimizations, including dedicated government, BFSI, and industry-specific cloud offerings with compliance baked in (e.g., DPDP 2025, RBI and SEBI regulations).

“This industry-specific focus is another strategic advantage, making Vayu Cloud particularly appealing to regulated sectors like finance and government.”

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Data Sovereignty and Security: A Key Differentiator

In an era of heightened data privacy concerns, enterprises are wary of public cloud providers where data sovereignty and compliance remain ambiguous. Vayu Cloud can address this with:

- Air-gapped government clouds for highly regulated industries.

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- Built-in compliance frameworks for financial services, healthcare, and retail.

- Integrated security and network governance at the infrastructure level, reducing the risks of misconfigurations—a common issue in public clouds.

Will This Work: Tata Communications' Strategic Advantage?

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According to the leadership, Tata Communications isn’t new to this space. With over a decade of cloud innovation, it brings:

- Global infrastructure spanning data centres in India, the UK, the US, and Singapore.

- Deep multi-cloud migration expertise, having facilitated transitions across AWS, Azure, and Google Cloud.

- Experience managing thousands of VMs, petabytes of storage, and critical enterprise workloads at scale.

“The company’s move into AI-native cloud infrastructure is well-timed, as enterprises increasingly seek cost-effective, scalable, and secure alternatives to hyperscalers.”

Final Word: A Cloud Built for the AI Era

As enterprises transition into an AI-first world, there is a definite demand for flexible, high-performance, and cost-effective cloud solutions. Vayu Cloud positions itself as a strong contender, offering businesses more control, cost efficiency, and industry-specific compliance.

Tata Communications is making a bold pivot—moving beyond telecom to position itself as a serious player in AI-driven cloud solutions. While its network strength and Edge offerings are solid, its impact on communications tech has been less pronounced. The real test? Whether this shift to a balanced cloud strategy—public, private, and on-prem with AI—gains traction. Next quarter’s numbers may tell.  

As AI reshapes enterprise IT, Vayu Cloud bets on businesses wanting more control, flexibility, and intelligence. Will it be the answer to cloud complexity, or will hyperscalers and private clouds continue to dominate?