Analysis & Outlook
India Datacentre Market 2013 –Significant growth expected till 2016
Data Centres are facilities that ho...
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India Datacentre Market 2013 – Significant growth expected till 2016

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India Data Centre Market is expected to see significant growth in future.

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India Datacentre Market 2013 – Significant growth expected till 2016

  1. 1. Analysis & Outlook India Datacentre Market 2013 –Significant growth expected till 2016 Data Centres are facilities that house computer systems and store data - are of two types captive (firms setting up centres for their own use) and third-party (outsourced).Data centres market in India is seeing a good growth since past few years thanks to the explosion of data through smartphones, social networking sites and ecommerce companies. Even Government of India have initiated projects like Aadhar Card project by Unique Identification Authority of India, digitization of Land records, citizen services, etc. are also increasing the demand for data centres in India. In India market is dominated by third-party data centre providers like Netmagic, Tulip Telecom, CtrlS and telecom firms Reliance, Tata Communications and Sify that provide services to internet companies like Yahoo, Ebay, Flipkart, Myntra, etc.According to Nasscom, India’s data centre market was at about $2.2 billion in 2012 and is estimated to grow by more than 8% over the next 3-4 years. The current data centre space available is India is about 3.7 million sqft as of 2012-end and is estimated to rise to 6.3 million sqft by 2017, said Naresh Singh, Principal Research Analyst with Gartner, with service providers leading majority of the growth. In terms of market size, it is projected to grow to $3 billion (Rs 16,320 crore) from $2.2 billion (Rs 11,960 crore) in the same period. Data centre capacity is concentrated across certain cities such as Bangalore, Mumbai New Delhi and Hyderabad.Gartner valued the colocation and hosting market in India at US$609.1m in 2012 and by 2016 it will be worth $1.3bn. The Date Centre Dynamics Intelligence Industry Census data collected in 2012 shows that investment in India’s data centre market was expected to reach US$4.4bn in 2012, up from $4.1bn in 2011 (China investment for 2012 was expected to be $8.7bn and Brazil’s $5.5bn). In India, this represents 1.21m sq m of data centre space being built – up from 0.76m sq m in 2011, and a power demand of 1.04 GW in 2012. A report by Frost & Sullivan which predicted that by 2018 there will be almost nine million square feet of data centre floor space — a three-fold increase from current levels. Most of the demand for data centres in India is from IT and ITenabled service firms, banking and financial services sector, telecom companies, Internet service providers and consumer goods firms. The Indian IT infrastructure market, comprising of server, storage and networking equipment, will total $2.1 billion in 2013, growing 9.7 percent compared to 2012, according to Gartner, Inc and market is driven by hardware refresh, optimization and consolidation efforts and new data centre build.But the industry is facing severe problems like unpredictable power supply which will lead to shutdown of datacenters that costs in terms of money and data loss, unreliable internet connectivity, limited bandwidth and unreliable optical fiber connectivity between different parts of the country. Despite these problems the demand for data centres in India is expected to grow because of the national e-governance projects by Central and State government and prospective changes in regulations by Reserve Bank of India planning to make it mandatory for data to reside within the geographic boundaries of the country. Even Indian companies are looking to increase the usage of Third Party Data centres as they also need to store data that they are collecting during their business activities and use such data for business decision making. Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/

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