As global macroeconomic conditions worsen and funding slowdown continues, Indian startups are cutting their spends on an integral part of tech businesses – cloud storage – by renegotiating contracts with service providers like AWS and Google Cloud, multiple startup founders told ET.
Many of these companies have slashed cloud expenses by 20%-30% while some growth stage startups such as ecommerce platforms Meesho and Dealshare have brought down their cloud expenses by 50%, under pressure to control their cash burn, they said.
This has led to the top three cloud service providers – Amazon Web Services (AWS), Google Cloud Platform and Microsoft Azure – waging pricing wars to lure startups onto their platforms in the current downturn.
Over the past months, several startups have been approached by AWS rivals to switch over for lesser pricing, multiple founders who have been in talks with them confirmed.
In some instances, founders are using pricing quotes received from Google Cloud and Microsoft Azure to renegotiate discounted contracts with AWS, their primary cloud service provider, said one of the founders.
Cybersecurity ecosystem
With the rapidly evolving digital landscape, cybersecurity has become a critical focus area, especially in countries like India where digital penetration is soaring. The Data Security Council of India (DSCI) has forecasted an exponential expansion in the cybersecurity ecosystem, anticipating a demand for nearly one million professionals by 2025. This surge is driven not only by the growing number of cyber threats but also by advancements like 5G and cloud computing. With the 5G rollout, Indian mobile operators are expected to double their investments in network security to counter the rise in network vulnerabilities, which will be crucial to safeguarding both enterprises and consumers. However, this is no easy feat, as building a robust cybersecurity team requires intensive training and skill development.
The Need for Skilled Cybersecurity Professionals
The DSCI has highlighted the need for skilled professionals in India’s cybersecurity domain, particularly as demand for cloud security skills alone is expected to grow by 115% between 2020 and 2025. This represents nearly 20,000 job openings dedicated to cloud security, according to recent insights shared by Narayan, a leading expert in the field. This sharp increase in demand stems from the expansion of cloud services, which, while beneficial for scalability and data access, also presents new security risks. This scenario emphasizes the pressing need for organizations to equip their teams with advanced cloud security knowledge and practices.
Upskilling and Reskilling: The Path Forward
For Indian telecommunications companies (telcos), the move toward a secure digital future hinges on proactive reskilling and upskilling. According to staffing experts, the only way to prepare for this surge in demand is to provide extensive training in emerging cybersecurity fields. Upskilling the existing workforce not only addresses the skill gap but also future-proofs the organization, making it agile enough to respond to ever-evolving security threats.
Challenges of Building a Robust Security Team
Despite the heightened focus on cybersecurity, Indian telcos face significant challenges in building strong security teams. As digital transformation accelerates, telcos are under pressure to adopt robust security measures, yet they struggle to fill the skill gaps in specialized areas like cloud and network security.
“Even if we do not talk about 5G (specifically), the security talent in general in the country is very sparse at the moment. We need to get more (security) professionals in the system”
Bharti Airtel, for example, has been preparing for 5G roll out by upskilling its professionals and offering them certification courses such as CCNA (Cisco Certified Network Associate) and CCNP (Cisco Certified Network Professional). The courses are offered based on skill and eligibility level free of cost.
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While larger corporations often have complex data security systems in place, small businesses can also fall victim to a cyber attack if they do not take steps to protect themselves