India IT Infra market on pace to touch $1.9b this year

Tags: Industry
The Indian IT infrastructure market will total $1.9 billion in 2016, registering a one per cent increase from 2015, according to Gartner. The IT infrastructure market includes server, storage and enterprise networking equipment.

“Indian enterprises will continue to focus on optimising their infrastructure and operations budgets in 2016,” said Naveen Mishra, research director at Gartner. “Optimisation is primarily driven with an objective to create next generation data centre architecture that can support the ever increasing challenges of digital business. With the emergence of biomodal IT, there are a lot of investments made in Mode 1, and is an increasing focus on building Mode 2 infrastructure,” he pointed out.

According to the report, Mode 1 workloads are witnessing investments in areas such as cloud, software defined storage and network coupled with integrated systems. Public cloud is increasingly becoming relevant for data center managers and IT leaders in India. Though it is in the early days, DevOps is another area, which is gaining traction in India within IT operations teams.

Enterprise networking is the biggest segment within the Indian IT infrastructure market with revenue expected to total $848 million in 2016, as against $812 million in 2015. This is an area where enterprises are focusing heavily in terms of their optimisation efforts and evaluating software driven networking, as this is becoming a barrier to a seamless digital experience.

“With a revenue projection of $253 million in 2016, ($275 million in 2015) storage investment will witness a decline from last year primarily due to improved price performance,” said Mishra. “Enterprises are increasingly investing in software defined storage, evaluating alternate, cheaper devices, such as flash storage, which is helping them to contain the ever increasing storage costs.”

“If you look at the market size, a one per cent increase may not look big. However, if we consider the larger picture, where even the US is growing only by 3-4 per cent, while markets like western Europe are declining, what Indian market is witnessing is still a positive growth. And if one takes the currency fluctuation into account, the growth will be bigger in Rupee terms,” Mishra told FC.

According to him, a whole lot of public cloud, which are based in Singapore, but delivering services here have not been counted. Further, commodity technology is seeing pricing decline. “As a result, the revenue increase is lower, while the shipping of products have been increasing,” he pointed out.

Even in the case of storage devices, there is a decline in revenue. “But that does not mean that Indian companies are investing less in terms of terabyte storage. It is not that customers are not buying storage. They are buying, because of lower prices, revenues have declined,” Mishra said.


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