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Arrcus in talks with Indian players to explore onboarding white box vendors in India
Arrcus is in discussions with Indian companies that are considering becoming white box vendors for networking software providers such as the Nvidia-backed startup, its chief executive said.
Large Indian companies with diversified interests are viewing this as an opportunity, especially with all the data centre activity happening in the country, Shekar Ayyar told ET.
A white box vendor provides unbranded, generic, customisable hardware (like servers or switches) built from standard, off-the-shelf components, contrasting with major brands. These vendors offer significant cost savings and flexibility, allowing organisations to choose their own software—such as the California-based company's ArcOS network operating system—and tailor systems, though this requires more in-house integration and management.
Ayyar did not name the companies Arrcus is speaking with. “They're all big names,” he said, adding: “They are in discussions with us in terms of how our software plus the white boxes that they can provide would be a combination for what they can do for the industry."
These companies are viewing it as an opportunity to provide a value proposition to companies like Arrcus to work with a white box vendor in India, rather than Taiwan where most of the white box vendors are typically from, he said. Currently, he said, Arrcus works closely with US and Taiwanese companies like Edgecore, Lanner Electronics, Quanta Computer and Celestica.
"Large Indian manufacturers are thinking why don't we build the box internally, we can source the silicon just like any other white box vendor from Broadcom or Nvidia or whoever, or perhaps we manufacture the silicon ourselves, and then we pull that whole thing together and bring it to the customer,” he said. “That's the kind of opportunity that exists in the Indian market today and those are the kinds of discussions that we are entering into to see if that becomes feasible."
Meanwhile, Arrcus is opening its second office in India, in Chennai. Ayyar said Arrcus is expecting that between its Bengaluru and Chennai centres, the company would likely double its headcount in India in the next 12-15 months or so.
"From an engineering standpoint, we have offices in the US and India," he explained. "In India, until about six months to a year back, it was just an engineering presence. We have just started expanding the go-to-market presence. We're seeing a tremendous amount of potential in India. Even before the AI wave there has been a very big focus on data centre growth in India and, then with the AI wave, we are seeing that even more accelerated."
Large global companies that are building data centres elsewhere are also building their data centres in India, he said.
"From an aspirational standpoint, I would love for 10% of our bookings to come from India," Ayyar said. "That's not the case right now. We're just starting our sales presence here."
Source: EconomicTimes
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