Netmagic Partners Spectranet To Set Up Multi-Location DiD

Netmagic Solutions has partnered with Spectranet to set up what it claims to be India's first multi-location commercial DiD (Datacenter-in-Datacenter). As part of this arrangement, Spectranet will set up DiD across Netmagic's datacenters in Mumbai, Noida, Bangalore and Chennai. Spectranet will independently deliver service and support to the customers hosted at the DiDs, with Netmagic providing the core datacenter infrastructure support and services.

This is the one of the first such deals in the datacenter space in India where a communication services provider has partnered with a pure-play datacenter service provider. The partnership opportunity is reportedly worth Rs 200 crore($40 million).

Globally, in mature markets, this business model is common within the datacenter space, where an end-user focused service provider partners with a pure-play datacenter service provider for collocation space and related services while focusing on customer service and support.

Udit Mehrotra, managing director, Spectranet, said "This partnership will enable us to rapidly roll out services across the top four enterprise and SMB markets in India. This partnership will also enable Netmagic to leverage Spectranet's core strengths in intra-city connectivity to offer integrated connectivity and datacenter solutions in the market."

Started in 2000, Spectranet is a Shyam Group company involved in communication services. The company's operations are segmented into enterprise and home solutions and its portfolio ranges from high-speed broadband to next-gen cloud-based services. Spectranet currently provides its services to more than 20,000 customers in cities like Delhi NCR, Mumbai, Bangalore, Chennai, Hyderabad and Chandigarh.

Sharad Sanghi, founder & CEO, Netmagic Solutions said, "Given the growth opportunity in the marketplace and cost benefits to be had, the model is a win-win partnership for both Netmagic and Spectranet." Established in 1998, Netmagic Solutions currently operates seven datacentres in cities like Mumbai, Chennai, Noida (Delhi-NCR) and Bangalore. It employs around 500 people and provides services such as co-location and managed hosting (to more than 1,000 customers), as well as ISP and cloud services.

The firm raised $10 million each from Nexus and Fidelity in a $20 million round in early 2008. Again in 2010, it raised Rs 70 crore in a round led by Nokia Growth Partners and Cisco Systems.

Last month, Japan's NTT Communications Corporation (NTT Com), a wholly owned subsidiary of Nippon Telegraph and Telephone (NTT) Corporation, said it is acquiring 74 per cent stake in Netmagic Solutions.

Nexus Venture Partners and Fidelity International along with Nokia Growth Partners and Cisco Systems, announced their exits from the company. Sharad Sanghi, founder & CEO of Netmagic Solutions will hold the remaining 26 per cent stake and continue to hold his position as CEO.