In an exclusive interview with Enterprise IT World’s Sanjay Mohapatra, Piyush Somani, the visionary Founder, CMD & CEO of ESDS Software Solution, delves into the transformative potential of AI and digital technologies in shaping India’s future.
We’ve seen a lot of activity in 2024, including significant geopolitical events and major elections in India and the US. What do you foresee for 2025?
There will likely be turbulence in various sectors, such as stock markets, oil and gas, and geopolitical conflicts. However, one area poised for significant growth is AI. This growth will drive advancements in technologies like mixed reality, blockchain, IoT, and app modernization, all of which rely on cloud and data centers. AI is very compute-intensive, and with the advancements in hardware, we can now support its growth. ESDS has been working on AI for over 16 years, and we were pioneers in vertical auto-scaling in the cloud, for which we received patents. The availability of new-generation hardware is now enabling AI to scale effectively.
This technology is primarily consumed by enterprises and the government sector. With GDP growth projected to be slower, where will the consumption come from?
The GDP projection is low because many industries are not growing and some are even shrinking. This is partly due to the continued use of outdated manufacturing technologies. Countries like Germany, Japan, and China are ahead with Industry 4.0 and 5.0 technologies, while India lags behind with Industry 2.0. Many Indian enterprises are reluctant to invest in new technologies, which is hindering growth. The real growth is coming from infrastructure projects like real estate, road construction, and ports. The lack of digitalization post-COVID is also a significant gap.
“India should consider China as a partner rather than a competitor.”
Piyush Somani, Founder, CMD & CEO of ESDS Software Solution
What about the concept of India becoming a self-reliant manufacturing hub and data center hub?
India should consider China as a partner rather than a competitor. China is technologically advanced and can help India by bringing in technology and setting up operations here. This collaboration can help Indian entrepreneurs compete and innovate. Without this, India may fall further behind. It’s crucial to invite Chinese companies to set up operations in India to bridge the technological gap.
How do you see India becoming a data center hub despite economic challenges and reluctance from entrepreneurs to adopt new technologies?
Despite economic challenges, digital adoption in sectors like finance has been significant. The use of UPI for transactions, the adoption of credit cards, and the implementation of 5G are examples of successful digital initiatives. However, sectors like SMEs, agriculture, and state governments lag in digital adoption. The central government has made strides, but more effort is needed at the state level and in traditional industries.
What role do MNCs play in driving data center growth in India?
MNCs are significant drivers of data center growth in India. They have mandates to host data on hyperscalers and are setting up data centers and cloud operations in India. This adoption by MNCs is contributing to the growth of the data center market.
What innovations are happening in the data center space to address energy consumption?
Innovations in battery storage, such as solid-state batteries, lithium-ion batteries, and hydrogen solutions, are expected to revolutionize the power sector for data centers. Solar panels are becoming more efficient, and micro nuclear-powered data centers are a possibility in the future. These advancements will address power-related issues and improve efficiency.
How is AI being used in data centers?
AI technologies like generative AI, agentic AI, and digital twin solutions are being implemented in data centers. While some case studies are emerging, there is still room for growth in areas like mixed reality and computer vision.
How does India compare to other Southeast Asian countries in the data center market?
India has a significant advantage due to its large and young population. The continuous upliftment of people from lower economic classes to middle and upper classes creates massive opportunities. The aspirations of the younger generation are high, and this will drive growth in the data center market.
What are ESDS’s plans for 2025?
ESDS is focusing on working closely with banks, central government departments, and the agriculture sector. We have developed an agritech solution that we hope will be a game-changer. While we face challenges in transforming large enterprises and SMEs, we are committed to solving customers’ business problems with our solutions.
How many data centers does ESDS have, and what are your expansion plans?
We currently have four data centers and plan to open a fifth one in Delhi. Our existing data centers are in Nasik, Bangalore, Mohali, and Navi Mumbai. We aim to grow smartly without incurring excessive debt, focusing on profitability and solving customer problems.
