Business Cloud News
Sify's $25 million fund will be divided up among startups focusing on cloud, security and managed service innovations

Sify’s $25 million fund will be divided up among startups focusing on cloud, security and managed service innovations

Sify, a Chennai-based provider of ICT services and solutions is in the process of setting up a startup investment fund that will focus on cloud, security and managed services solutions.

The company says that it has already put together an initial fund of 30 crores ($4.5m), with up to 120 crores ($18m) to be made available for once Sify’s board of directors gives final approval for the fund. The combined total of the initial fund will reach just shy of $25 million.

Sify says that the investments or partnerships will be focused on companies that share synergies with the company’s existing managed services and enterprise IT services portfolio, with the aim of strengthening and differentiating the brand both in India and internationally, and creating new revenue streams.

Offshore providers like Sify are beginning to make the move into cloud computing by setting up investment programmes and partnerships of the like in a bid to ensure they remain relevant at a time when commodity cloud-based services have begun replacing bespoke applications and services in enterprises today, internationally as well as in India. According to India Brand Equity Foundation, a trust set up by the Indian Ministry of Commerce and Industry, the public cloud services market in India is expected to reach $443m this year, a 36 per cent increase over 2012, and is expected to swell to $4.2bn by 2017.

In an interview with Business Cloud News, Ian Marriott, vice president of research and offshore services lead at Gartner said that the industry is likely going to see more offshore service providers invest in developing cloud-based services that don’t require extra man-power in order to add to their bottom line.

In this respect Sify seem to be taking cues from Infosys, one of the largest IT outsourcing firms in the world. In April this year Infosys announced that it would be forming an innovation fund of about $100m, available to both internal development and external companies and startups, with the primary goal of creating synergies and partnerships that will allow the company to expand its cloud and IP-related products portfolio.