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India Data Center Market 2012 – Cost Savings & Various Service Offerings

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India Data Center Market 2012 – Cost Savings & Various Service Offerings

  1. 1. Analysis & Outlook India Data Center Market 2012 – Cost Savings&Various Service OfferingsThe Indian Data Center market is seeing significant growth in demand as there is not onlysignificant increase in adoption by governments both at the center and state levels where they areaggressively building data centers to utilize cloud computing to store data and provide services tocitizens more efficiently but also from the business organizations who have realized that thereare significant benefits for them in terms of cost savings and increased focus on their corebusinesses as hosting a company’s IT infrastructure in a managed data center by a third partyservice provider and in a centralized rather than distributed manner, works out to be more cost-effective in the long run. In case of captive data centers, huge costs associated with real estate, ITinfrastructure, and the manpower to manage it will have a direct impact on the companyprofitability. Data centers services providersinvest hugely(in Crores of rupees) in power andcooling infrastructure such as chiller units, generators, batteries and UPS units, powerdistribution units (PDUs) and specialized computer room air conditioning units (CRAC) andbusinesses that are looking to use the data centers services providers can benefit from theeconomies of scale and shared services model. Data center providers are currently offeringinfrastructure services along withspecialized services (over the cloud) such as security, digitalvideo surveillance and storage and data centers are partnering with vendors and solutionproviders for offering such services.Managed hosting services is another key driver of growth in India in which data center providerwill lease an entire server to one customer who has full control over the leased server andadministration (monitoring, updates, application management, etc.) are offered as add-onservices. This is cheaper when compared to deploying a server in-house, as it is costly in termsof power and cooling costs and IT staff costs. Managed services, which include cloud computingsolutions, managed ATM services and video conference solutions and Network leases areusually a 12-month contract renewed every year. But for managed service contracts, customersprefer a three or a five-year contract, as they want certainty.Collocation (colo or coloc) is a datacenter service in which customers can place their own server in a data center and use shared andredundant resources like power and HVAC which is very attractive for the customers as theyneed not have invest upfront for such resources. Data centers also offer locked cages forcustomer servers, monitored by IP cameras at the customer’s end and customers can also visit thesite and do server administration from a cubicle.The data center colocation and hosting market inIndia is estimated to reach $609.1 million in 2012, according to Gartner, Inc. The market willexperience consistent growth through 2016 when the market is forecast to total $1.3 billion.Data center-in- Data center (DiD in which data centers host a major IT service provider like HP,IBM or Dell and the service provider will in turn host infrastructure for its own customers whichhelps service provider to focus on its core expertise (applications and services) without makingupfront and expensive investments in power and cooling. India players are already hosting someof the major IT service providers and are also opening data centers overseas and are activelylooking to go global.Small and Medium businesses are also increasing the adoption and theyhave significant cost and resource savings by hosting their IT on third party data centers andwhich is further fuelling demand in India market. The various service offerings by the datacenters services providers and the significant cost benefits and increased focus on core businessprocesses are expected to fuel the data center market in India in the next five years and largeplayers are investing heavily in setting up new data centers and increasing capacities.Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/

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