Indian firms are increasingly localizing data storage and telecom technology, driven by new policies and a desire for reduced reliance on foreign components. Companies such as CloudPhotonix and DigiBoxx are leading this shift, responding to both market demands and regulatory changes. The trend emphasizes the importance of domestic manufacturing for transceivers and cloud solutions, highlighting a significant opportunity within the Indian technology sector.
Indian companies are seizing opportunities to localize technology infrastructure, specifically in data storage and telecommunications. Emerging firms like CloudPhotonix, founded by industry veterans, are prioritizing domestic product development to reduce reliance on foreign—particularly Chinese—components. This trend is also evident in data storage solutions from companies such as DigiBoxx, which aims to provide local cloud services to help businesses comply with new regulations governing data management.
The Digital Personal Data Protection Act, 2023, although not mandating data storage localization, paves the way for possible future requirements. Currently, the Reserve Bank of India enforces local storage of payment data, fostering a momentum towards domestic solutions. CloudPhotonix’s co-founder, Tarun Sibal, emphasizes the importance of transceivers, which are critical components in telecom and networking equipment, as the company works to manufacture locally instead of importing these components.
The expertise needed to produce transceivers is rare, creating challenges for newer entrants in the market. Projections from Roots Analysis estimate the global optical transceiver market will reach $47.64 billion by 2035, indicating significant growth potential. A substantial portion of data center expenditure is attributed to imported transceivers, underscoring the importance of developing local alternatives.
DigiBoxx promotes itself as India’s first domestic SaaS-based digital storage platform, with its infrastructure securely located in the country. CEO Arnab Mitra recognizes that while local data storage may be costlier, firms prioritize compliance and reputational assurance when selecting storage options, deeming this reassurance invaluable. This shift towards local options aligns with heightened privacy concerns.
Union Secretary for Electronics and Information Technology, S. Krishnan, applauds these local initiatives in telecom and data storage, highlighting the commercial motivations behind these strategic shifts. Meanwhile, IT Minister Ashwini Vaishnaw praises the successful deployment of OpenRAN technology in India, which is anticipated to be exported soon.
The article discusses the growing trend of localization in the Indian technology sector, particularly in data storage and telecommunications. It highlights how changes in policy and market demands are encouraging Indian firms to focus on domestic manufacturing and services. The push for localization is partly driven by regulatory frameworks such as the Digital Personal Data Protection Act, which addresses data security and privacy concerns. As the demand for local solutions rises, companies like CloudPhotonix and DigiBoxx are positioning themselves to capitalize on these opportunities, ultimately leading to a significant transformation in India’s tech landscape.
The movement towards localizing technology infrastructure in India reflects a strategic initiative from domestic firms to create a self-sufficient tech ecosystem. With rising concerns about data security and the influence of recent policy changes, companies are increasingly opting for local solutions over imports. This trend holds promise for economic growth and technological advancement in India, signifying a potential shift in the global tech supply chain.
Original Source: www.thehindu.com
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