India’s push for digital infrastructure separated from the global network, creating an opportunity for a multiple dollars for local technical players, is increasing in sovereign cloud services. The Tata Consultancy Services (TCS) and Google’s India Unit are emerging as early movements in the field, which attracts constant interest from government agencies to secure sensitive data on domestic platforms.
Many government institutions are already going to these homegron cloud solutions, four people familiar with this matter. TCS is leading the pack between Indian firms, with its recently launched Sovernsecure Cloud. Google’s local hand is also receiving traction, offering special sovereign cloud platforms with its Google distributed cloud. Hiranandani Group firm Yota Data Service is also planning to create a sovereign cloud.
To ensure this, these contracts are not very large, although they present a big opportunity for the future. Ayushman Bharat Digital Mission, an initial adoption, spent Total 92 crores in FY 25 Cloud was 30 crore for contract, one of the authorities said on the condition of anonymity.
The TCS did not answer the email questions, but a senior executive associated with its sovereign cloud product stated that one of the reasons behind the product was that the opportunity was “capitalized” amid growing concerns about sovereignty and data safety.
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“We (TCS) believe that we have a fully indigenous cloud service, where everything from hardware to software is created by an Indian company,” the executive said on the condition of anonymity. “It should be assured that any department or wing of the government can be assured of any concern.
Managing Director for Asia-Pacific, solutions and technology in Google, Mitesh Aggarwal confirmed that the company had already placed sovereign cloud customers on ship in India. “We provide AI models within the sovereign coasts of India-for example, we have Gemini 1.5, where the whole end-to-end data processing occurs within our data centers in India,” said Aggarwal.
He said that the company offers this through a platform called Google distributed cloud, which meets the need for completely isolated cloud storage and computing for sensitive agencies.
“Most sovereign cloud projects will be an amount for an annual revenue of about 2-5 million dollars. While it is not much, in the next five years, thousands of such projects are expected to come equally from government agencies and private companies. It can build multi-dollars of dollars for infrastructure providers,” an official said that an official said on a condition.
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The sovereign refers to a digital platform within the country to store and process the cloud data, as well as to run applications. From code base to physical data centers, everything is completely located in India – separating them from any reach from outside the country. The construction of such platforms was presented as an initial concept about three years ago. In 2023, Monaco became the first adoption of such a platform by the Technology Service Provider VMware in Europe. Since then, technology has found more people, because countries grow more protectionists.
In India, adoption is being led by government bodies. “Ayushman Bharat Digital Health Mission is a government project that is currently adopting sovereign cloud services. Similarly, the Employees Provident Fund Organization, Passport Service and Aadhaar’s governing body have their own projects, and they are still in the process of adopting sovereign clouds in their operations,” said another official.
“Adopting sovereign cloud platform is not a matter of changing global cloud services from the US Big Tech. There are some sensitive data requirements that you need cloud services provided by Indian companies. It will ensure that this data is stored in India, without any particular party’s risk of being shared with other geographies.
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