Indian hosting company Netmagic Solutions, which could soon be 74% owned by Japan’s NTT Communications, has signed a deal with communications and data center company Spectranet worth Rs 200 crores to host data center operations in four Indian cities.

Netmagic said the deal represents India’s first multi-location commercial arrangement for data center-in-a-data center offerings between a communications provider and pure-play data center services provider.

Netmagic said while the model is widely used in other markets, in India, end-user focussed service providers have not partnered with pure play data center service providers for collocation space.

It will provide Spectranet with a footprint in Mumbai, Noida, Bangalore and Chennai, with Netmagic providing the core infrastructure and support services for its communications solutions.

Spectranet managing director Udit Mehrotra said Spectranet will allow the company to rapidly roll out services for India’s small and medium and enterprise business markets using already established facilities.

“While Spectranet has been providing data center services since 2000, our footprint has been largely limited to Delhi and Bangalore region,” Mehrotra said.

“The model ensures that the service delivery and management is entirely done by Spectranet, while leveraging the underlying state-of-the-art infrastructure available at the Netmagic facilities. This partnership will also enable Netmagic to leverage Spectranet’s core strengths in intra-city connectivity to offer integrated connectivity and data center solutions in the market.”

Spectranet could also find itself hooked up to a much larger data center network if NTT Communications’ plans to purchase 74% of Netmagic Solutions are approved.

In January, it announced its intentions – the decision is still awaiting approval from regulatory bodies.

Netmagic Solutions founder and CEO Sharad Sanghi said once approved, Netmagic will be able to leverage NTT Com’s global network and data center footprint.

“The partnership will also help us strengthen our growth plans in the Indian sub-continent and globally while NTT Com’s global customers in India can benefit from Netmagic’s expertise and leadership position in the managed IT hosting and cloud services market," Sanghi said.