Bharti Airtel Launches Sovereign Cloud Platform, Challenges US Players

Bharti Airtel has launched a sovereign cloud platform, Airtel Cloud, to help Indian companies reduce cloud expenditure while keeping data within the country. The platform will compete with US players like Microsoft, Amazon Web Services, and Google. Airtel Cloud will be offered through Xtelify, a subsidiary of Bharti Airtel, and will provide telecom-grade cloud services to other operators via a platform-as-a-service model.

Bharti Airtel, India's second-largest telecom operator, has launched Airtel Cloud, a sovereign cloud platform designed to help Indian companies reduce cloud expenditure while keeping data within the country. The platform, developed by Xtelify, a fully-owned subsidiary of Bharti Airtel, is a significant move in the digital infrastructure market, where US tech giants like Microsoft, Amazon Web Services, and Google dominate [1].

Airtel Cloud is a telco-grade cloud platform that offers Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and advanced connectivity. It is designed to handle 140 crore transactions per minute, initially serving Airtel's internal operations, and is now being extended to meet the evolving needs of businesses in India [1]. The platform is hosted on next-generation sustainable data centers and managed by 300 certified cloud experts, ensuring high security and reliability [1].

The platform's launch is part of a broader strategy to reduce cloud spending for enterprises by 30-40% by leveraging Airtel's network and cloud services [2]. Bharti Airtel's vice-chairman and managing director, Gopal Vittal, stated that the bundling of network and cloud services provides a strong value proposition, enabling significant cost savings for customers [2].

Airtel Cloud will be housed under Airtel’s digital arm, Xtelify, which also launched an AI-powered, future-ready software platform aimed at helping telcos worldwide eliminate complexity, improve customer experience, lower churn, and raise average revenue per user (ARPU) [1]. The platform includes a converged data engine for AI-led insights and intelligence at scale, a Workforce platform for real-time task streamlining, and an Experience platform for managing every element of a telco's customer journey [1].

Airtel has signed three global partnerships to deploy its software platforms. With Singtel, Airtel will deploy an enterprise-grade, plug-and-play transformative platform called 'Xtelify Work' to enhance productivity in Singapore [1]. With Globe Telecom, Airtel will deploy its cutting-edge, next-generation AI-powered customer services platform called 'Xtelify Serve' in the Philippines [1]. With Airtel Africa, Airtel will provide its software platforms, including Data Engine and Work, to empower its 150,000-strong field team across 14 countries [1].

The launch of Airtel Cloud is strategic for Bharti Airtel, as it aims to increase its piece of the enterprise segment, which currently contributes around 15-20% to total revenue [3]. The company has been doubling down on offering a suite of products to enterprises, including cloud technologies, IoT, and communications platform-as-a-service (CPaaS) [3].

The sovereign cloud offering is particularly important for regulated entities like banks and insurance companies, which are often unable to place their data on public clouds due to strict data localization requirements [2]. Airtel’s sovereign cloud is designed to address these challenges, providing a secure and compliant solution for data storage and processing [2].

The launch of Airtel Cloud assumes significance as the company saw its top line fall by 2.7% year-on-year in the March quarter in its B2B segment, primarily due to shedding its low-margin wholesale business [3]. However, in the B2B segment, Airtel has been doubling down on offering a suite of products to enterprises, including cloud technologies, the Internet of Things (IoT), and communications platform-as-a-service (CPaaS) [3].

Airtel Cloud is a significant development in India's digital infrastructure landscape, positioning Airtel as a key player in the sovereign cloud market. The platform's ability to reduce cloud spending and enhance data security makes it an attractive option for Indian enterprises seeking to optimize their cloud operations.

References:
[1] https://www.business-standard.com/markets/capital-market-news/xtelify-an-airtel-arm-launches-telco-grade-sovereign-cloud-platform-airtel-cloud-125080401261_1.html
[2] https://www.livemint.com/companies/news/cloud-digital-infrastructure-bharti-airtel-microsoft-aws-google-yotta-tcs-e2e-networks-nxtra-11754310304283.html
[3] https://www.marketscreener.com/news/india-s-bharti-airtel-launches-cloud-services-for-telecom-operators-ce7c5edada8ef62c