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Analysis & Outlook India Data Center Market 2012 – Significant growth forecasted,Future Outlook 2017India Data Center mark...
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India Data Center Market 2012 – Significant growth forecasted, Future Outlook 2017


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India Data Center Market seeing good growth.

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India Data Center Market 2012 – Significant growth forecasted, Future Outlook 2017

  1. 1. Analysis & Outlook India Data Center Market 2012 – Significant growth forecasted,Future Outlook 2017India Data Center market is expected to see significant growth in the next five years as there hasbeen increased adoption by Indian companies of the third party data center services and thegovernment has also increased its cloud computing initiatives where it is directly setting up datacenters and also using the services of the third party data center service providers. RelianceCommunications has announced the multiple orders bagged from Central and State Governmentof India as the company has signed long term contract with The Department of Post, MunicipalCorporation of Greater Mumbai (BMC), Madhya Pradesh Border Checkpost DevelopmentCompany Limited along with Karnataka DISCOM and Chattisgarh DISCOM.McKinsey hasestimated that the third party outsourced data centre market in India is expected to grow at aCAGR of 32% to Rs 5,500 crore by the year 2017 with verticals such as banking and financialservices, media and entertainment service, manufacturing, international telecom providers andretail accounting for 70% of this growth.TechNavios analysts forecast the Data CenterEquipment market in Indiato grow at a CAGR of 10.4% over the period 2011-2015.The Indian IT infrastructure market comprising of servers, storage and networking equipmentwill reach US$2.05 billion in 2012, a 10.3% increase over 2011, according to Gartner, Inc. TheIT infrastructure market is expected to reach $3.01 billion by 2016. Revenue growth will beprimarily driven by ongoing data center modernization, as well as new data center build outs.Servers are the largest segment of the Indian IT infrastructure market, with revenue forecast toreach $754.5 million in 2012, and grow to $967.2 million in 2016. The external controller-basedstorage disk market in India is expected to grow from $439.4 million in end-user spending to$842 million in 2016. The enterprise network equipment market in India, which includesenterprise LAN and WAN equipment, is expected to grow from $861 million in 2012 to $1.2billion in 2016. Gartner Analysts predict that Indian businesses are looking to focus onoptimizing the IT Infrastructure and strategy by implementing virtualization and ongoinginvestment in large captive data centers mixed with the capacity growth initiated by the datacenter service providers are the key drivers for growth. Mobility, social media and cloudcomputing adoption will have significant influence on the way data centers are designed,operated and managed their by the data center services providers.Dimension Data estimates data centre market in India is growing at a CAGR of 22% and willtouch Rs 6,500 crore by 2016. BSNL offers managed co-location, managed hosting and cloudservices through the Internet Data Centers (IDC), which have been built by Dimension Data forBSNL. This public-private initiative will leverage the strength of BSNL in telecom infrastructureand vacant buildings and that of Dimension Data in providing data center and cloud computing,"Communications and IT Minister Kapil Sibal said while inaugurating BSNL IDC services.Dimension Data operates and manages IDC centers, which are located in Mumbai, Faridabad,Ahmedabad, Jaipur, Ludhiana and Ghaziabad. Each of these is run at a Tier III level and allmake use of vacant space BSNL has at its telephone exchanges. According to Reji ThomasCherian, VP, Telecom, Media & Entertainment, Capgemini India, the Cloud Computing marketincluding PaaS, IaaS and SaaS was worth $400 mn for India alone. Data center services revenueis projected to touch $2.6bn in 2012. The managed security market in India was worth $321 mnin 2011 and is expected to see rapid growth. Moreover, managed third party data center servicesgenerated revenues to the tune of $662 mn in 2011 and this too is on a high growth trajectory.Rajesh Prabhakar Analyst Bio @