The IT sector has been experiencing significant growth for a long time, primarily driven by the widespread adoption of cloud hosting in India. Cloud hosting infrastructure provides scalable, cost-effective, and reliable solutions that enable businesses to operate efficiently.
In cloud hosting, multiple servers are interconnected to form a network that dynamically distributes resources. This setup is ideal for businesses with varying workloads, ensuring uninterrupted services. Therefore, if you are a web hosting reseller looking to expand, Tier-2 cities in India offer tremendous potential. Let’s see how.
The Rise of Tier 2 as Cloud Hosting Hotspots
1. Lower Latency for Regional Users
We live in a fast-paced world, and fast, real-time responses are all that today’s audience needs. It works best, especially with sectors like OTT, streaming or gaming, where the closer the data centre is, the lower the latency it can deliver.
That’s why edge data centres of cloud servers in Tier II and III cities are so useful. They bring more computing power closer to users, reduce delays, and improve overall service performance. This maximises the best cloud hosting benefits.
2. Compliance Benefit
As cyber threats become increasingly sophisticated, security concerns grow. Various government mandates have stated that data must be kept and processed internally. When emerging hubs establish their cloud-hosting data centres in Tier 2 cities, they follow the rules and ensure safety.
3. Better Support From Government
The Indian government, with the support of various states, is now encouraging data centre investment in Tier 2 cities. A notable example is RailTel, which is establishing edge data centres at 102 railway stations, including Tier II cities. States are supporting emerging hubs with subsidies, dual power supply, and other benefits.
Why Tier-2 Cities are Gaining Momentum?
1. Cost Advantage
Tier 2 cities benefit significantly in cost compared to metropolitan cities. First, property prices are 30-40% lower than in metropolitan cities. It greatly reduces operational expenses.
Furthermore, the cost of living is also comparatively lower, which means you save 15-20% on packages compared to what you offer in metropolitan cities. So, cloud hosting benefits become even more pronounced in Tier 2 cities, as businesses can leverage affordable infrastructure.
2. Untapped Pool of Talent
A significant percentage of the talent pool is present in Tier 2 cities, since 60% of colleges offering specialisation are based in these cities. Whether it’s arts or science, particularly in engineering, offers skilled graduates who contribute to a significant percentage of the workforce.
So, when you take the benefit of cloud hosting to build your setup, whether online or offline, you get a cost advantage.
3. Infrastructural Support
As India develops, it is improving connectivity, whether through roads or reliable transportation, facilitating easy accessibility. That has transformed Tier 2 cities, making them more integrated with economic hubs while attracting businesses. These cities are developing their potential and thriving commercially.
4. Distributed Work Model
COVID-19 brought a major shift in how we work. But this distributed or remote model also ensured that talents were not limited to metro areas. For this reason, business models have evolved. Companies have started setting up smaller offices in Tier-2 cities using a hub-and-spoke model.
Conclusion
Cloud hosting is greatly powering and transforming emerging hubs by offering cost-effective, scalable, and efficient solutions. It is backed up by government support and enables better compliance by keeping data within national borders.
As edge data centres get located closer to users, it ensures low latency, providing faster and smoother digital experiences.