India Data Center Spending To Rise Marginally This Year: Gartner

by CXOtoday News Desk    May 11, 2018

datacenter

Data center infrastructure hardware enterprise spending in India is on pace to total US$2.7 billion in 2018, a 2.6 percent increase from 2017, Gartner researchers said at the recent Gartner Infrastructure, Operations Management & Data Center Summit, which was attended by over 400 participants.

While hardware spending is set to grow moderately in 2018, enterprise spending on data center infrastructure software will rise to US$3.6 billion in 2018, a 10 percent year-over-year increase, researchers said  at the summit.

“Digital business initiatives are forcing infrastructure and operations leaders in India to adopt a hybrid IT infrastructure model that can deliver reliable, innovative and cost-effective solutions to the business in a timely manner,” said Santhosh Rao, research director at Gartner. “This positions cloud computing as a critical component of the hybrid model.”

In 2018, data center infrastructure hardware will be spending, end-user spending on networking equipment by modernize their local area network and wide area networkinfrastructure to support digital business needs.

Technologies such as software-defined data centers are helping businesses optimize their existing resources, and as a result reducing overall spend on compute and storage resources,  added Mr. Rao.

Spending on IaaS and SaaS up in 2018

Most organizations today have a cloud-first strategy, and new business applications are most likely to be developed and hosted using public cloud services. In addition, the availability of hyperscale data centers such as Amazon Web Services and Microsoft Azure in India, as well as local providers ramping up to provide public cloud services, have become compelling reasons for Indian organizations to move toward infrastructure as a service (IaaS). Spending on IaaS in India is set to reach US$1 billion in 2018, up 45.5 percent year over year.

Another notable trend is an increase in the number of migrations of on-premises office suites to software as a service-based offerings, such as Google G suite and Microsoft Office 365. Indian businesses are expected to spend close to US$275 million on cloud office suites in 2018, a 37 percent increase year over year.

“While overall end-user spending on servers in India is expected to decline slightly, the hyperconverged integrated system (HCIS) segment of the server market is expected to grow further,” said Mr. Rao. “HCIS witnessed wide-scale adoption in 2017 thanks to its operational simplicity. The momentum is expected to continue in 2018 with companies migrating their business-critical workloads to HCIS.”