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Indian data center infrastructure spend on the rise

08 Dec 2015

The data center infrastructure market in India is forecast to be worth US$2 billion in 2016, up 5.2% year on year, according to a report from industry analysts, Gartner.

The analyst firm is forecasting server revenue to reach US$698 million, an increase of 5.3% over 2015.

Enterprise networking will continue to be the biggest segment with revenue expected to touch $963 million in 2016, Gartner says.

Aman Munglani, Gartner research director, says this segment will also be the fastest growing market, with spending forecast to increase 5.9% in 2016.

“With increased focus on mobility and big data activities in India, software defined networking has the highest adoption rate amongst Indian enterprises,” Munglani says.

He says the storage market is projected to reach $307 million in 2016, up 3% year on year, with storage modernisation and consolidation, backup and recovery, and disaster recovery key drivers. Gartner says those drivers are likely to remain relevant through to 2019.

However, a strong push towards cloud based infrastructure-as-a-service by small and medium businesses will negate the increase in storage spend in the enterprise domain, Gartner says.

The company says it also expects the emerging hyperconverged integrated systems and storage technologies based on software defined storage to encroach on the traditional ECB storage market.

Munglani says mobile and the proliferation of data, are having a dramatic impact on supporting infrastructure and operations (I&O) infrastructure, such as servers, storage, networking, facilities and IT operations, along with creating new security challenges.

The pressure for businesses to deliver solutions more quickly to market is also having an impact.

“In 2016, data center modernisation will continue to be a key driver for infrastructure spend in India,” Munglani says. “Automation and orchestration are becoming high priorities for Indian leaders as well,” he adds.

“Software defined infrastructures and an increased focus on disaster recovery and business continuity will also lead to an increased spend on infrastructure.”

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