The IT Infrastructure Market in India is driven by an increased adoption of infrastructure modernization and consolidation. According to TechNavio, The IT Infrastructure Market in India is expected to grow at a CAGR of 6.36 percent for the 2013-2018 period.
Focused on building intelligent data centers, the market is progressively embracing integrated storage and public-cloud services. Also, adoption of colocation and cloud services are emerging as major trends. Some of these trends are bringing in real-time, business-driven opportunities in social analytics, mobility, and big data.
Indian enterprises are also aiming at optimizing their existing hardware assets. They are looking at becoming more agile while controlling costs. As a result, virtualization and data center consolidation along with cloud and mobility are gaining momentum.
Optimization of IT Infrastructure is influencing network purchase. Factors such as storage modernization, consolidation, backup, recovery, and disaster recovery, are the driving forces. Hence, an increase in up-gradation and demand for servers, across industry verticals, is being witnessed.
Overall, India is witnessing a paradigm shift in the way IT Infrastructure delivers business and it is expected to impact positively.
TechNavio analysts have chosen to highlight four key market trends that are influencing the IT Infrastructure Market in India.
Increase in Server Demand across the Industry
Various large enterprises and SMEs have been witnessing the benefits of server installation in terms of increasing efficiency, reducing operating costs, providing data backup, and optimizing energy consumption. They support the major functions of an enterprise and help to make an enterprise more centralized, scalable, and flexible.
The Server Market in India is expected to register remarkable growth in the coming years. The implementation of new models, such as ERP and CRM in SMEs, are the primary contributing factor to the growth of servers in India.
In addition, the Server Market in India is largely driven by IT and IT-enabled services and the BFSI sector, with growing demand for rack and blade servers. Growing popularity of cloud computing, big data, and virtualization is boosting the Server market in India, wherein micro-servers and blade-servers are the major drivers.
Adoption of Colocation and Cloud Services
Organizations are focusing upon spending on technology that can scale up according to business requirements and save them the tiresome process of IT infrastructure procurement.
Organizations can end up spending six to nine months in procuring, testing, and deploying solutions, while adoption of cloud services helps them to significantly reduce time. By the end of 2014, cloud services are expected to grow moderately fast and have a positive impact on the Data Center Market.
Hybrid cloud is expected to see a healthy adoption rate by SMEs over the next few years. Most IT infrastructure adoptions are largely driven by data center service providers. More vendors are looking at providing managed, colocation, or cloud services that will eventually contribute to the growth of the IT Infrastructure market in India.
Rising Number of Specific Service Providers
With the presence in the market of several players with similar offerings, there is an increasing need for differentiation, resulting in the emergence of firms specializing in specific services.
This is likely to lead to a strategic partnership model in data center and solution providers. Some examples include the Tulip-EMC partnership for on-demand cloud storage and backup services. Along with this, DVS solutions on cloud is offered by Tulip-Mind Tree and Lomega partnership. IT Providers are also focusing on introducing modular data centers and are aiming to design data centers that are smaller but have greater density, allowing companies to expand their capacity in line with demand.
Growing Usage of Datacenter in Datacenter (DID)
The concept of DID is one of the emerging trends in the IT Infrastructure market in India. DID is likely to host service providers such as IBM, Dell, and HP who in turn host the infrastructure for their own customers. This technology helps service providers to focus on their core expertise, such as application and SaaS hosted services, without making extensive investments in power and cooling.
Under partnership with Netmagic, Spectranet is expected to set up a multi-location commercial DID across Netmagic’s data centers in Bengaluru, Chennai, Mumbai, and Noida, in India. The partnership is intended to benefit Netmagic by using Spectranet’s vast fiber and IP network, enabling Netmagic to extend these services to its customers.
