Datacenter storage market to reach Rs 5K crore in 2017

by CXOtoday News Desk    Mar 22, 2013

Data Centre

The increasing data needs of Indian enterprises are creating a fertile market for cloud computing, green datacenters, virtualization, and flat datacenters. The emergence of cloud computing, adherence to datacenter standards, and growing acceptance of carrier-neutral datacenter outsourcers, in turn, will cause value-chain participants to rethink the segment they choose to operate in.

New analysis from Frost & Sullivan, opportunities across Value Chain in DataCenter Market India, FY 2011, finds that the datacenter storage market earned revenues of Rs 1,963 crore in 2011 and estimates this to reach Rs 5,154 crore in 2017.

Customers are increasingly looking at a one-stop shop for their datacenter needs, ranging from hardware procurement to deployment, operations, and maintenance. Vendor consolidation will help blend the traditional roles played by server/ storage-only vendor and network connectivity providers.

“Already, the telecom segment provides network connectivity, datacenter build consultancy, and managed services for both captive and hosted datacenters,” said Frost & Sullivan Information and Communication Technologies analyst. “Storage and server original equipment manufacturers are also looking at extending their offerings by providing networking gear and off-premise cloud services.”

While expansion into newer business and revenue segments is desirable, companies need to exercise caution in the current economic environment. They have to demonstrate long-term vision while investing heavily in future markets.

With competition escalating, it will be interesting to note how companies strategically reposition themselves as one-stop shop providers as early as possible. For the competitive datacenter market, building a robust cloud services offering as part of the product portfolio is one of the best ways to gain an edge.

“Designing a cloud software-as-a-service (SaaS) product, which can be cross-sold to small and medium segment customers, is critical for a telecom company’s strategic growth plan,” noted the analyst. “However, software service designing and execution is not an area of core competency for a telecom company.”

Companies can hope to make the transition from traditional trade to new competencies by signing key partnerships and alliances. For instance, a telecom company can enter into a partnership with an independent software vendor to build a mass SaaS solution for the volume-driven small and medium business segment.

These efforts, along with Indian customers’ willingness to adopt datacenter management services for technological and service efficiency, will go a long way in improving participants’ market prospects.