India Data Center Market seeing good growth.

1. Analysis & Outlook
India Data Center Market 2012 – Significant growth forecasted,Future Outlook 2017
India Data Center market is expected to see significant growth in the next five years as there has
been increased adoption by Indian companies of the third party data center services and the
government has also increased its cloud computing initiatives where it is directly setting up data
centers and also using the services of the third party data center service providers. Reliance
Communications has announced the multiple orders bagged from Central and State Government
of India as the company has signed long term contract with The Department of Post, Municipal
Corporation of Greater Mumbai (BMC), Madhya Pradesh Border Checkpost Development
Company Limited along with Karnataka DISCOM and Chattisgarh DISCOM.McKinsey has
estimated that the third party outsourced data centre market in India is expected to grow at a
CAGR of 32% to Rs 5,500 crore by the year 2017 with verticals such as banking and financial
services, media and entertainment service, manufacturing, international telecom providers and
retail accounting for 70% of this growth.TechNavio's analysts forecast the Data Center
Equipment 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 equipment
will reach US$2.05 billion in 2012, a 10.3% increase over 2011, according to Gartner, Inc. The
IT infrastructure market is expected to reach $3.01 billion by 2016. Revenue growth will be
primarily 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 to
reach $754.5 million in 2012, and grow to $967.2 million in 2016. The external controller-based
storage 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 includes
enterprise LAN and WAN equipment, is expected to grow from $861 million in 2012 to $1.2
billion in 2016. Gartner Analysts predict that Indian businesses are looking to focus on
optimizing the IT Infrastructure and strategy by implementing virtualization and ongoing
investment in large captive data centers mixed with the capacity growth initiated by the data
center service providers are the key drivers for growth. Mobility, social media and cloud
computing 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 will
touch Rs 6,500 crore by 2016. BSNL offers managed co-location, managed hosting and cloud
services through the Internet Data Centers (IDC), which have been built by Dimension Data for
BSNL. This public-private initiative will leverage the strength of BSNL in telecom infrastructure
and 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 all
make use of vacant space BSNL has at its telephone exchanges. According to Reji Thomas
Cherian, VP, Telecom, Media & Entertainment, Capgemini India, the Cloud Computing market
including PaaS, IaaS and SaaS was worth $400 mn for India alone. Data center services revenue
is projected to touch $2.6bn in 2012. The managed security market in India was worth $321 mn
in 2011 and is expected to see rapid growth. Moreover, managed third party data center services
generated revenues to the tune of $662 mn in 2011 and this too is on a high growth trajectory.
Rajesh Prabhakar Analyst Bio @ http://itbizcharts.blogspot.com/