In a bid to align with India's newly enacted Data Protection and Privacy (DPDP) Act, German enterprise software maker, SAP SE, has intensified its focus on the Indian market by announcing the upcoming availability of its cloud solutions through a local India-based data center from mid-2024.
This development comes as a response to the Indian government tightening its grip on data security and privacy, compelling numerous multinational tech firms to localise their services to comply with the new regulatory landscape.
The stringent data processing and storage mandates are impacting diverse segments of SAP's clientele in India. The move to localise data center operations is seen as a strategic step to foster trust, resilience, and risk mitigation for mission-critical business applications. It's a clear nod to the Indian enterprises' increasing demand for in-country data residency to meet regulatory requirements.
The extended portfolio of cloud solutions including services like SAP S/4HANA Cloud and SAP Business Technology Platform, will now be hosted within the sovereign borders of India, said the company.
Ashwini Vaishnaw, Minister for Railways, Communication, Electronics & Information Technology, welcomed SAP's expansion, stating, “Led by Hon'ble Prime Minister's vision of Digital India, India has evolved into a vibrant digital economy. I am happy to learn that SAP is further expanding its current portfolio of software solutions to be hosted on India-based data centers.”
Thomas Saueressig, a member of SAP SE's Executive Board, emphasised the economic synergy between SAP and India, stating, “India is set to become the third largest economy in the world and plays a critical role in supporting SAP's cloud strategy and momentum.”
“SAP already touches 60 per cent of India's GDP and, by hosting our cloud solutions on an India-based data center, we will be even more uniquely positioned to help organisations across the country to transform their operations, and continue to innovate and grow in the cloud,” Saueressig said.
To ensure in-country data residency of business-critical and personal data, SAP will collaborate with cloud service providers vetted by Ministry of Electronics and Information Technology (MeitY).
Many big American hyperscalers like Amazon Web Services (AWS), Microsoft, and Google Cloud, as well as home-grown cloud companies like CtrlS, ITI Limited, Jio Platforms, ESDS, RailTel, Sify Technologies, and Yotta Infrastructure Solutions, among others are on MeitY's empanelled list.
This move not only aligns with the regulatory requisites but significantly augments SAP's cloud strategy in one of its fastest-growing markets, said a senior executive.
“India is a strategic market for SAP, and as Indian organisations continue their Cloud transformation journeys, this development will provide a vital infrastructure foundation for businesses of all sizes enabling them to develop new customer experiences, utilise more cutting-edge technologies, and scale innovation using a wide range of SAP's cloud offerings,” said Kulmeet Bawa, President & Managing Director, SAP Indian Subcontinent.