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Asia Analysis - One To Watch: Sify, India Sify has recently announced the launch of "end-to-end" managed security services (MSS) from its Security Operations Centre in Bangalore. The company plans to offer global customers 24x7 monitoring, security event correlation, vulnerability protection, compliance monitoring and forensics services. MSS would enable Sify to assure early warning of any possible unauthorised access to information by hackers. The current UK government might well take note of Sify’s offerings which can prevent information pilferage even if a storage device such as a laptop is lost. The information is completely encrypted and nobody will be able to access the data. Sify’s MSS have been developed on the IONi (information on infrastructure) customer service portal supported by Security Information Management (SIM) tools via its Security Operations Centre. The entire MSS suite comprises of managed firewall/VPN service (MFS), managed Intrusion Detection and Prevention Service (IDS/IPS), managed content security service, managed Unified Threat Management Service (UTM) and Managed Vulnerability Protection Service (MVPS). Focused on industry verticals such as IT/ITES (IT enabled services), banking and financial services industry (BFSI), government, manufacturing, pharmaceutical and FMCG, around 60% of the company’s revenues is derived from the enterprise sector. The company will invest USD 8 million to open two new “Level-IV” data centres in Mumbai and Delhi by the end of the current year. It also intends to invest in a data centre in Delhi, and land in Chennai where Sify's headquarters, data centres and network command centres will be developed. Its current strength lies in its Indian home base, with a strong presence in the local market and an extensive Internet backbone across the continent, it has also constructed a network through leasing and peering agreements reaching Asia, North America and Europe. It has attracted in more than 1200 clients, including Whirlpool, GE, and Gillette. With some foresight too, Sify has repositioned its brand, and visual identity and its new presence in the IT infrastructure space has significantly strengthened its Enterprise Services portfolio to provide a sharper focus on the burgeoning security market, estimated to grow to USD 12 billion by 2010. Sify appears to be assembling the assets it requires to further internationalise its business. However to do so effectively, could imply a serious cost to penetrate overseas markets. Currently it has offices in the US, UK and Dubai UAE. It is a giant leap from there to grow the business internationally, and the challenge confronting many outsourcing specialists, is how to shift resources and technologies to address other markets and develop new services. There are some increasingly evident opportunities for Sify, but it remains to be seen whether they will be pursued. As it moves into new market segments, particularly with managed security, its risk profile will increase. In addition, the competitive positioning of the company will also remain critical as it confronts companies such as Symantec. Sify reported revenues of USD 38.38 million for the third quarter ended 31st December 07, 2.8% higher than the previous quarter, and 8.7% higher compared to the same period last fiscal. It will be interesting to watch how the company fares in the year ahead and sustains the innovation it has shown already, balances risk and reward and competes in a very rapacious market.
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