Tata Communications intends to invite outside investors into its SaaS subsidiary, NetFoundry, to make it worthwhile and integrally grow. This is part of a strategic evaluation of Tata Communications’s assets with a keen eye on Artificial Intelligence (AI) as per the Managing Director and CEO AS Lakshminarayanan.
The changes to the international subsidiaries-the firm is embarking on now are to streamline the operations and prepare for future acquisition conductivity. The latest uplift included a shift in an entity from Bermuda to Switzerland alongside a simplified structuring in The Netherlands.
AI Adoption and GPU as-a-Service
Lakshminarayanan pointed out the progress of Tata Communications in AI. The company unveiled a GPU as-a-service launch in January, with several startups and enterprises already in advanced discussions. The AI Studio platform, designed to enhance usability and security, is also anticipated to be launched in the latter part of this quarter.
“As they define their use cases and investigate AI capabilities, we are aiming to reach a variety of startups and enterprises, including manufacturers and financial institutions,” Lakshminarayanan stated.
Amidst the strong global demand for GPUs, the company has been relatively successfully sourcing within the usual timeframe with the ongoing data center preparations in collaboration with NVIDIA. Tata Communications is one of only ten shortlisted bidders for the IndiaAI Mission to procure 10,000 GPUs, a Ministry of Electronics and IT (MeitY) initiative to support startups.
Global Performance and Strategic Focus
Strong growth has been recorded in international markets, including the UK APAC, Americas, and Central Europe. Order bookings were delayed in the December quarter, but they remain strong. The EBITDA margin has improved across portfolios, propelling the digital business growth to drive overall performance.
Lakshminarayanan re-emphasized the company goal of achieving 23% EBITDA margins despite the muted growth of the core connectivity businesses. “All of our businesses were focused on our ambition, and we have returned to a strong trajectory for growth,” he added.
Perspective on the US Administration and Trade Dynamics
While he could not say how things will pan out with the new Trump administration, Lakshminarayanan did say it will be too much of a stretch to catch the early signs of any significant change: “Business sentiments still remain positive, and we don’t expect any immediate disruptions. We are in the digital infrastructure space, which is less impacted by visa and service issues.”
He dismissed prospects of a sporting trade war by pointing to the give-and-take nature of some statements. “The broad expectation is that the administration will remain business-friendly while balancing ‘America First’ policies and the importance of global trade,” he added.
AI’s Future in India
Speaking on AI adoption in India, Lakshminarayanan stated that enterprises are still at the initial stages of AI, tinkering rather than launching large-scale deployments. Tata Communications is watching this trend very closely to ensure its offerings align with market needs.
On Regulatory Frameworks
The CEO was also upbeat about India’s draft Data Protection and Digital Privacy (DPDP) rules: “This revised draft has addressed many,” he went on, “of our earlier concerns. At this point in time, we don’t see any strong pretences of objection.”
Tata Communications continues to position itself as an industry leader in digital infrastructure and AI innovations, creating a robust base for long-term growth.
