As artificial intelligence adoption accelerates globally, Tata Communications unveiled a trio of platforms designed to fortify the digital infrastructure enterprises need before they, in CEO A.S. Lakshminarayanan's warning, "walk off a cliff edge."
Tata Communications revealed its AI-ready suite comprising IZO+ Multi Cloud Network, Edge Distribution Platform and ThreadSpan.
The Infrastructure Crisis
In a conversation with BW Businessworld, Lakshminarayanan paints a sobering picture of enterprise digital infrastructure. "We believe the digital infrastructure of today in large enterprises is already very fragile. They are fragmented into multiple domains. Each domain is managed by different technologies - that's the world we live in," he said.
The fragmentation creates persistent security vulnerabilities and operational chaos. "You fix something, something else breaks," Lakshminarayanan explains, describing a cycle of reactive firefighting that characterises most enterprise IT operations today.
The real danger, according to the CEO, lies ahead. While AI adoption remains limited, reports suggest only five per cent of companies have truly scaled AI implementations; enterprises are approaching a critical juncture unprepared. "AI has not scaled so much yet. I don't think people have seen that they are walking towards or running towards a cliff edge without knowing what's on the other side," Lakshminarayanan warns.
The threat intensifies as AI adoption grows. "As companies adopt AI more and more, they are getting closer to the cliff edge if they do not fix the digital foundation," he stresses.
Tata Communications' response centres on three complementary platforms built atop what the company calls its "digital fabric", an integrated approach combining network, cloud, cybersecurity and other capabilities.
 The three platforms address different challenges. IZO+ handles multi-cloud complexity, Edge Distribution Platform reduces latency for real-time AI applications, and ThreadSpan provides unified visibility and control. Together they aim to shift enterprises "from reactive firefighting to proactive autonomy."
Different Revenue Model
These launches signal a fundamental shift in Tata Communications' business model and growth trajectory.
Digital revenues already comprise nearly 50 per cent of the company's portfolio and are growing at 15 per cent year-to-date in fiscal 2026, while the core connectivity business expands only in the low single digits.
"The digital portfolio is the real oxygen for growth for the company," Lakshminarayanan says.
But within that digital portfolio, a distinction emerges. Next-generation connectivity projects, though lucrative, carry extended timelines. "The gestation period to win such projects is anywhere up to 12 months and sometimes more. After we win the project, to convert them to revenue is again 12 months or more. To fully realise the revenue of the contract, it takes about 18 months," Lakshminarayanan explains.
The newly launched platforms operate differently. "All of them are like SaaS products. You can click and get those products running," he says. Implementation timelines shrink dramatically, from quarters to "weeks and months" or even days for some capabilities.
According to him, velocity matters. "These products are dramatically different from the products we've been working on. That's the excitement we have. This can start to contribute to our revenue," Lakshmi notes.
Startup Metrics for a Legacy Player
Tata Communications is applying startup benchmarks to these new platforms. "Any startup, you would celebrate them if they hit 10 million in revenue in the first year and then get to 100 million in a couple of years. That's the excitement we have with these products," Lakshmi says.
Against the company's $2.5 billion revenue base, such figures might seem negligible initially. "When we publish the results, some of them will not shift the needle and will be buried under the fabric data," he acknowledges. But the long-term potential lies in their scalability and margin profile. "These are truly SaaS with higher margins as well. That will impact the margin profile of the company when they scale and as they scale," he adds.
Investment requirements remain manageable. "Products are not big investments; they're all software development and product engineering investments," Lakshmi explains. The company plans to maintain its $50-60 million annual investment in new product development, a contrast to its financial position just years ago.
"Six-seven years ago, we were scrambling for cash. We were at a high debt level, we were not producing enough margins. Today, we are at a position where we are producing margins, we are producing cash which can be invested back into strengthening these products," he recalls.
On India's sovereign AI ambitions, Lakshmi articulates a nuanced position that looks beyond data localisation to the architecture of intelligence itself.
"When we talk about sovereign AI, there are lots going on there. First of all, how do you manage and store the data? Today many people are on public cloud hyperscalers to an extent that is not sovereign. They might have a cloud instance in India, but that doesn't necessarily mean sovereignty," he says.
Tata Communications' vision centres on what Lakshmi calls an "AI operating system", a complete platform stack including context layers, agentic AI workflows, voice AI, and low-code development capabilities. "All of this is sovereign. For an enterprise, the context is where the intelligence lies. How we operate will be very different from another company. How the customer interacts with us is very different. Adding that context and bringing that context to a model is where the true benefit comes from. All of that can be sovereign," he emphasises.
This approach allows enterprises to leverage global large language models while maintaining sovereign control over their proprietary intelligence, operational knowledge, customer interactions, and workflows that differentiate their business.
Redefining AI Scale
Lakshmi challenges prevailing definitions of AI adoption at scale. While some claim companies have scaled AI if they've deployed it in at least one function across all departments, he set a tone in a larger sense.
"You can claim to be a scaled AI if, above your system of records and system of engagement, you are able to create that layer where you truly understand the context," he says.
Real scale emerges when systems predict customer needs, pre-prepare resources and make increasingly autonomous decisions - what he terms "AI agency."
"Understanding context is one dimension. The other is AI agency - how autonomous are the decisions being made? Are simple decisions or more and more complex decisions made by AI? When we see AI agency and context understanding, most companies are not even scratching the surface." he explains.
This gap between current reality and future potential underscores his infrastructure warnings. "When things happen at machine speed and things are happening autonomously without even your knowledge, the infrastructure will come under tremendous stress. You have to prepare yourself for that."
The Road Ahead
Lakshminarayanan will retire on 13 April 2026, with Ganesh Lakshminarayanan already appointed as CEO-designate. Yet far from winding down, the outgoing chief executive is positioning these launches as the foundation for Tata Communications' next growth cycle.
As Lakshminarayanan prepares to hand leadership to Ganesh in just over two months, he framed these launches not as a capstone but as a springboard.
"I think there's so much potential for Tata Comm to go ahead with this product. There are others in the pipeline. We have a very solid foundation from which the company can grow, and we're all thrilled where we are now," he concludes.
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