THE BLOG

How Cloud Formation in India Brings Business to Web Hosting Companies in the West

Though President Obama had often tried to nudge his countrymen back in to the habits of work and education, citing the progress of India and China in information technology, this did not do much to improve the employment situation for Americans.

However, with the steady fall in unemployment and a handsome growth in the GDP, which show the president's policies are yielding in the second term, Barack Obama is once again trying to drive home his message, urging Americans to fight the competition from India, China and Germany.

Judging how India, once feared around the world as a juggernaut of information technology and IT-enabled services, has failed to capitalize on the opportunity, Americans can relax and get on with enjoying the Super Bowl.

The risk-averse India has predictably failed to capitalise on the IT boom offered primarily by its English literacy, much needed in the English speaking market of the U.S., Canada and the UK. Recent surveys indicate the growth has all but disappeared as the Indians couldn't take their IT success globally.

The much heralded Indian cloud computing revolution is still in white papers only which means it will be a long time before any Indian firm can claim a position in the top ten, unlike in the IT business where Indian companies like TCS, Infosys and Wipro dominate.

The white paper emphasizes that any cloud policy will have to take into account the data sovereignty and governance considerations and global practices relating to resolving jurisdictional conflicts. Data security requires an amendment in the current laws to harmonize jurisdictional conflict issues. Changes will also be required in the organisational security practices that provide for regular review/audit of critical cloud infrastructure.

All of the above hurdles and the haphazard infrastructure development and an array of regulations mired in the uncertain political situation in India means any development of cloud computing remains uncertain for decades to come while the growing Indian Industry is already in need of such services.

Besides, data safety and security concerns due to its poor reputation, are going to haunt India's ability to deliver reliable and secure services to the worldwide customers.

Though the required infrastructure and software facilities may be developed in China and elsewhere, political realities will hamper their globalization as companies like Google and Facebook have painfully realized in their forays in to the Chinese market.

This does leave medium and smaller hosting and cloud service providers in the U.S., Europe , Australia and elsewhere in the developing world -- for who India's rise in the IT-enabled cloud services would have been detrimental -- with a rare opportunity to challenge India in its own 'outsourcing 'game.

Small and medium hosting and cloud service companies, with flexible and imaginative policies can tap in to the fast developing small and medium consumers in India and other developing countries, who will find the bigger players not cost effective or too expensive.

Small and medium U.S.-based web hosting companies are already tapping in to the lucrative market with innovative policies like carbon neutral hosting, which will help customers tap in to government credits and subsidies for imports.

For example, Webhostingbuzz spends money on carbon credit through charitable initiatives like the International Tree Foundation which work in the developing world. This attractive selling point will likely win Webhostingbuzz goodwill and happy customers.

People in poverty are given shelter and the job of planting and looking after tree plantations. This method helps the neediest, as well as reducing the impact our carbon emissions have on the environment, a happy solution for many Indian customers.

An Australian entrepreneur and CEO of Australian hosting who is known as Aussie Bob is passionate about his company's role in connecting people and focuses on building relationship with customers, an unusual and highly valuable selling point when it comes markets like India.

Netcetera is a UK-cbased cloud service provider with servers located at seven different locations spread around the globe. All locations are offered at the same price with no premium for Far East locations meaning you can plan and scale your business as needed.

The bottom line is the infrastructural and administrative deficiencies in India leave a vital and lucrative global market place to innovative and enterprising cloud providers in the west, a sort of reverse outsourcing India and other developing countries will be forced to depend on, at least in the near future.