Coldspare

Ransomware fallback and a 6-hour incident desk for mid-size private hospitals

SMEs

TL;DR Coldspare is a managed service that gets a 50–300-bed private hospital ready for a ransomware attack - offline backups it can restore from, logs kept as the law requires, practised paper downtime and a desk that files the CERT-In report on time. Hospitals pay a yearly fee. It sells recovery speed, not immunity.

The problem

In November 2022 attackers hit about 50 servers at AIIMS Delhi. The hospital information system stayed down for over two weeks, and wards, clinics and labs went back to paper[1]. A 2026 review calls healthcare one of the most attacked sectors in India[1], and another notes that national digital health rules say little about staying available or recovering after an attack[2].

Mid-size private hospitals have more digital exposure every year and usually one or two IT staff. Since 2022 they have also had to report specified cyber incidents within six hours and keep 180 days of logs inside India[3]. How many have tested whether they could do either at 2 a.m.? Very few, I'd bet.

The idea

What it does, in regulatory terms: IT security and incident-response service only. Coldspare touches no patient care, makes no clinical decisions and is not a medical device. It helps a hospital meet CERT-In and DPDP duties, and the hospital stays the responsible entity.

The seed proposed AI that monitors and fixes "healthcare compliance". I narrowed it, because automatic changes inside a live hospital network are dangerous and "compliance" is far too vague to sell. Coldspare does four things - It installs backups that ransomware cannot reach and proves monthly that they restore. It collects and keeps logs from the hospital's systems for the required 180 days. It runs a quarterly downtime drill so wards can work on paper for 72 hours. And when something goes wrong, its desk helps contain it and files the six-hour report to CERT-In.

Who pays

The buyer is the hospital's owner, CEO or CFO, usually advised by the IT head. Mid-size private and trust hospitals, multi-specialty chains with three to ten sites, and large diagnostic labs are the core. They already pay for hospital software, annual maintenance contracts and audits. No public price exists for a hospital-specific readiness service in India, so the pitch is a yearly fee lower than a week of lost billing.

Why now

CERT-In's directions took effect in June 2022, with penalties of up to a year in prison or a ₹1 lakh fine for non-compliance[4]. The DPDP Act adds penalties of up to ₹250 Cr for failing to protect personal data[5]. Hospitals are also linking to national digital health systems, which widens their exposure[2].

Market signal

No public figure exists for what Indian hospitals spend on cybersecurity or recovery. The narrow evidence is the AIIMS outage of more than two weeks[1] and a legal duty that now applies to every hospital run by a company[3]. Adjacent: the WEF counts more than 1,000 attacks a week on healthcare organisations worldwide[2]. Treat that as context, not your market.

Who's already doing this

General managed security providers and the big IT services firms sell monitoring to large hospital chains. Hospital software vendors offer backups as part of maintenance contracts, though restores are rarely tested. I couldn't verify an Indian provider that packages tested recovery, log retention, downtime drills and CERT-In filing for mid-size hospitals, which is the gap.

How hard is it?

Difficulty Moderate (46/100)
Starting capital ₹1.2–2.2 Cr
Time to launch 6–9 months

Backups and log collection are known technology. The hard parts are getting into each hospital's messy mix of old software, running an incident desk that answers at night, and selling to owners who are sure an attack won't happen to them. Expect long sales cycles until the first public incident in your region.

Licences and approvals

No sector licence is needed for an IT security service, as long as you stay clear of clinical systems.

  • CERT-In directions (April 2022). Six-hour incident reporting, 180-day logs in India and clock sync to NIC or NPL. Your service is built around these from launch[3].
  • IT Act section 70B(7) sets the penalty for non-compliance, which is the reason hospitals will listen[4].
  • DPDP Act requires reasonable security safeguards and breach reporting. You process data for the hospital, so contracts must say so before you start[5].
  • Medical-device rules don't apply while you never touch clinical functions or device settings. Keep it that way as you scale.
  • Company registration with the MCA and GST once over the threshold.

Building this outside India? The categories above usually have a local equivalent, so check with your own regulator.

How AI can power this business

  • Restore test checks. AI can compare a monthly test restore against the live system and flag missing tables or files, so you prove backups work.
  • Log triage. A model can spot odd logins or mass file changes in the 180 days of logs and send only the worrying ones to your desk.
  • Report drafting. When an incident hits, AI drafts the CERT-In report from the timeline, and a person checks it before it's filed within six hours.
  • Drill scripts. Downtime drills get tailored to each ward from the hospital's own systems list.

Never let AI change anything inside a live hospital network on its own. A wrong automatic action can stop care, so every change goes through a person.

Want to work out the AI layer for Coldspare? Talk to Yash →

Biggest risks

  • Liability after a failed restore. If a hospital loses data on your watch, the reputational and contractual damage could end the company.
  • Slow buying. Owners often treat security as a cost until they are hit, so pipelines can stall for months.
  • Vendor lock-out. Hospital software vendors may refuse access to their systems or offer a cheaper bundled backup.

Our take

I like this for a founder with incident-response experience and contacts among hospital owners. If you're hoping to sell software without staff on call then it is a poor fit. First prove that five hospitals will let you run a full restore test and a paper drill, and that two will pay for a year after seeing the results.

Questions founders ask

Plan for roughly ₹1.2–2.2 Cr, mostly for skilled security staff, a response desk and backup infrastructure.

Do I need a licence to offer cybersecurity services to hospitals in India?

No sector licence. You build to the CERT-In directions, act as a DPDP processor and stay out of clinical systems so medical-device rules don't apply.

Can I start a hospital cyber readiness service in another country?

Yes. Hospitals everywhere face ransomware. Incident-reporting deadlines and health data rules differ, so check your local regulator first.

Download the kit

The free Coldspare validation kit has the line-by-line capital breakdown, the effort scoring, the CERT-In and data-protection checklist, a 14-day validation sprint with pass/fail targets, a 90-day launch plan, 10 interview questions for hospital owners and IT heads, and 5 assumptions to test. Download the kit →

Talk to Yash

Thinking about building Coldspare or something close to it? The make-or-break work is earning enough trust to touch a hospital's live systems before it has ever been attacked, and that's where a second pair of eyes helps. If you need a hand, you know where to find me. Talk to Yash →

Sources

  1. Choudhuri et al., "Cyber-resilient Intensive Care Unit: Ransomware is a Patient-safety Crisis", Indian J Crit Care Med 30(5), 2026. https://pmc.ncbi.nlm.nih.gov/articles/PMC13337669/
  2. Renukappa et al., "An assessment of cyber security and resilience of the National Digital Health Mission of India", Oxford Open Digital Health 4, 2026-06-07. https://pmc.ncbi.nlm.nih.gov/articles/PMC13317952/
  3. CERT-In, "Directions under section 70B(6) of the IT Act", 2022-04-28. https://www.cert-in.org.in/PDF/CERT-In_Directions_70B_28.04.2022.pdf
  4. PSA Legal, "New CERT-In Directions: Overview and Implications", 2022. https://psalegal.com/new-cert-in-directions-overview-and-implications/
  5. PRS Legislative Research, "Digital Personal Data Protection Bill 2023", 2023-08. https://prsindia.org/billtrack/digital-personal-data-protection-bill-2023

For illustration only. Names are fictional and ideas hypothetical; sourced facts are real but may be out of date. Nothing here is legal, financial or professional advice, and Yash Khatri is not personally liable for any use of it. Read the full disclaimer.

Reviews

No reviews yet