Bangalore Based Datacenter solution provider NxtGen Raises $8.8 Mn from Intel Capital

NxtGen Datacenter and Cloud Technologies, a Bangalore based startup has raised $ 8.8 million from chip maker Intel’s venture capital arm Intel Capital. The investment comes from the $250 million Intel Capital India Technology Fund established in December 2005.

The cloud based data storage solutions provider offers an on premise plug and play data centre service which works on “pay as you use” model. The company also provides a central IT platform as a service and enterprise Cloud Services such as Hybrid Cloud, among other services.

The IT Infrastructure service provider is coming up with a data center named as “High Density Datacenter” in Bangalore and plans to launch more in Delhi and Mumbai. nxtgen

In June 2013, CloudByte, a storage solution provider, raised $4 million in a new round of funding from Fidelity Growth Partners India and existing investors. Though a study a couple of months ago ranked India as the second most riskiest country to set up data center , the recent funding to NxtGen reaffirms investor faith.

According to a study by Springboard Research, third party data center market in India will reach $1.1 billion by 2015, with a CAGR growth of 29% for the period 2010-2015.

Sify Technologies Limited, Tata Communications, Reliance Communications and Netmagic Solutions are some of the established players in the enterprise class third party data center market in India. Recently, Netmagic, subsidiary of NTT Communications, announced its plans for a 1, 00,000 sq.ft data center in Bangalore.