Powering The Datacenters

With India becoming the preferred destination for datacenters, there is an urgent need for the right policies and reforms in the IT infrastructure industry that will spearhead India amongst the top players in the global IT infrastructure market

Today the focus is not only on designing intelligent infrastructures, but also optimizing the existing equipment. New technologies are overpowering traditional infrastructure with an accelerating shift from traditional data centers to colocation, cloud based and green data centers.

Growing pressure on power, scarcity and sky-rocketing prices of real estate, complexity in data center management, the need to rationalize costs of managing data and above all to improve the environmental credentials are driving this shift.

According to a Gartner report the datacenter infrastructure hardware enterprise spending in India is on pace to total US$2.7 billion in 2018, a 2.6% increase from 2017, according to Gartner.

While hardware spending is set to grow moderately in 2018, enterprise spending on data center infrastructure software will rise to US$3.6 billion in 2018, a 10 percent year-over-year increase.

In terms of data center infrastructure hardware spending, end-user spending on networking equipment is expected to grow in 2018 as organizations modernize their local area network (LAN) and wide area network (WAN) infrastructure to support digital business needs . In contrast, on-premises server and storage spending will decline marginally as a result of public cloud migration.

Spending on IaaS and SaaS Are Increasing in 2018

Most organizations today have a cloud-first strategy, and new business applications are most likely to be developed and hosted using public cloud services. In addition, the availability of hyperscale data centers such as Amazon Web Services and Microsoft Azure in India, as well as local providers ramping up to provide public cloud services, have become compelling reasons for Indian organizations to move toward infrastructure as a service (IaaS). Spending on IaaS in India is set to reach US$1 billion in 2018, up 45.5% year over year.

Another notable trend is an increase in the number of migrations of on-premises office suites to software as a service-based offerings, such as Google G suite and Microsoft Office 365. Indian businesses are expected to spend close to US$275 million on cloud office suites in 2018, a 37 percent increase year over year.