India Data Center Infrastructure Hardware Spending on Pace to Reach $2.7 Billion in 2018


Reading time ( words)

Analysts to discuss key issues facing data center leaders at the Gartner Infrastructure, Operations Management & Data Center Summit, May 8-9, 2018 in Mumbai.

Data center infrastructure hardware enterprise spending in India is on pace to total $2.7 billion in 2018, a 2.6% increase from 2017, according to Gartner, Inc.

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

Gartner analysts are providing the latest trends shaping the future of the infrastructure and operations market in front of over 400 attendees at Gartner's annual Gartner Infrastructure, Operations Management & Data Center Summit, which is taking place here through Wednesday.

"Digital business initiatives are forcing infrastructure and operations leaders in India to adopt a hybrid IT infrastructure model that can deliver reliable, innovative and cost-effective solutions to the business in a timely manner," said Santhosh Rao, research director at Gartner. "This positions cloud computing as a critical component of the hybrid model."

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 (see Table 1). In contrast, on-premises server and storage spending will decline marginally as a result of public cloud migration. "Technologies such as software-defined data centers are helping businesses optimize their existing resources, and as a result reducing overall spend on compute and storage resources," added Mr. Rao.

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 percent 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.

"While overall end-user spending on servers in India is expected to decline slightly, the hyperconverged integrated system (HCIS) segment of the server market is expected to grow further," said Mr. Rao. "HCIS witnessed wide-scale adoption in 2017 thanks to its operational simplicity. The momentum is expected to continue in 2018 with companies migrating their business-critical workloads to HCIS."

About Gartner

Gartner, Inc., is the world's leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We're trusted as an objective resource and critical partner by more than 12,000 organizations in more than 100 countries—across all major functions, in every industry and enterprise size.

Share


Suggested Items

Flights Show Promising Technologies from Industry and Academic Partnerships

02/06/2018 | NASA
The technologies ranged from proposed new space suits to cryogenic propellant research, with implications for future NASA space missions as well as other research efforts.

Ocean of Things Aims to Expand Maritime Awareness across Open Seas

12/12/2017 | DARPA
The internet of things connects an ever-growing number of smart devices for up-to-the-minute monitoring and tracking of many common events. Head out to most parts of the open ocean, however, and no such capability exists for real-time monitoring of maritime activity.

DARPA’s Drive to Keep the Microelectronics Revolution at Full Speed Builds Its Own Momentum

08/28/2017 | DARPA
To perpetuate the pace of innovation and progress in microelectronics technology over the past half-century, it will take an enormous village rife with innovators. This week, about 100 of those innovators throughout the broader technology ecosystem, including participants from the military, commercial, and academic sectors, gathered at DARPA headquarters at the kickoff meeting for the Agency’s new CHIPS program, known in long form as the Common Heterogeneous Integration and Intellectual Property (IP) Reuse Strategies program.



Copyright © 2018 I-Connect007. All rights reserved.