India's data center infrastructure spending to reach $2bn in 2015

India is expected to be the second fastest-growing data center infrastructure market in Asia-Pacific in 2015

India is expected to be the second-fastest-growing data center infrastructure market in Asia-Pacific in 2015, reaching an expected US$2bn, according to Gartner.

Spending in the market – which is made up of server, storage and networking equipment – will increase by 5.4% from US$1.91bn in 2014, said Gartner.

"A strong return to growth is expected in the Indian data center infrastructure market, and the market will be buoyed by an overall increase in sentiments and a strong resurgence of growth-related projects across verticals such as banking, insurance, telecom and the government segment,” said research director at Gartner Aman Munglani.

Gartner said trends in the small-and-medium-sized enterprize (SME) and corporate spaces will differ. "While much of the SME segment is likely to focus on infrastructure build-up, large enterprises will look at infrastructure replacement and growth-related projects covering mobility, cloud and big data,” said the analyst firm.

The IT infrastructure market in India had been reporting poor growth for many years. However, the current market is expected to witness a positive trend over the next three years.

AS Rajgopal, managing director of NxtGen Datacenter & Cloud Technologies – a Bangalore-based data center and cloud service provider – said he is not only excited about the report but optimistic about the market growth. The company, which has been recognized as 'Cool Vendor 2014' by Gartner, is one of the emerging leaders in data center and cloud-based services in India.

"Indian enterprises will be focusing on building intelligent data centers that focus on optimizing existing hardware assets by using additional software capabilities. This will drive increased attention on newer trends such as public cloud and integrated systems," said Munglani.

In the Indian IT infrastructure market, server revenue is forecast to reach US$677m in 2015 – a 3% increase from 2014. This will be the first year of positive growth since the 5.3% decline in 2013 and the 2.1% decrease expected in 2014. 

“There are numerous drivers for compute capacity. For example, the Nexus of Forces – encompassing cloud, social, mobile and information – creates a whole host of new workloads that will need servers to provision the compute capacity. Density, power consumption and performance are some of the top concerns on the minds of user organizations," said Gartner.

Enterprise networking is the biggest segment, with revenue expected to reach US$948m in 2015.

The storage market is forecast to reach $409m in 2015 – a 7% increase from 2014. Storage modernization and consolidation, backup and recovery, and disaster recovery are some of the key drivers to this market, and they are likely to remain relevant drivers over the forecast period through 2018.

According to Munglani, there is a demand for innovative systems that help powering businesses to grow by cutting through complexity and saving on cost, and the companies that cater to the needs of SMEs and large enterprises will emerge as winners.

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