The market for cloud services has grown immensely with a notable percentage of total IT spending. Oracle has predicted a sharp drop in the traditional IT spending of businesses across the globe over the next decade as the services are moving to cloud. That said, HCL Technologies has announced its plans to increase investment on SMAC (Social, Mobility, Analytics, Cloud) with their main focus especially on Cloud in the coming next couple of years, a top company executive has said. The step is take in to boost digital transformation across India. “Currently, 60 percent of our IT budget is focused on SMAC. It will go up to 80-90 percent of total IT spend by 2019-20,” Manoj Kumbhat, CIO of HCL Technologies, told IANS on the sidelines of the ongoing Oracle OpenWorld (OOW) 2016 conference. “As we aim to become a $10 billion company by 2020, total IT investment on SMAC will go up significantly and Cloud gives tremendous flexibility for scaling up,” Kumbhat said. Also Read - HCL acquires data management platform Datawave
Also Read - HCL launches AI-powered services for enterprises
Moving towards digital transformation, he said the company will shut down four of its six data centers in India in next three-four years. “We are not investing in data centres anymore. Currently, we have six data centres in the country. By 2019-20, we will keep only two data centres as we move towards Cloud services,” Kumbhat noted. HCL Technologies’ 95 percent business comes from India, with North America and Europe being the largest markets. Also Read - HCL Infosystems in talks to distribute Apple products in India
The global IT services major last month reported a consolidated net profit of Rs 2,047 crore for first (April-June) quarter of fiscal 2016-17 — registering 14.8 percent year-on-year (YoY) growth.
Earlier this month, HCL Technologies announced a partnership with data centre infrastructure company Mesosphere to deliver a unified operational experience and achieve efficient resource utilization for its customers.The partnership combines Mesosphere’s Datacenter Operating System (DC/OS) with HCL’s unique Next-Gen IT and operations capabilities.