IDC projects data center services market to touch Rs10,000 crore by end-2011
17 Mar 2010
According to a recent IDC India report, titled Assessment of Business Opportunities in the India Data Center Services Market, the Indian data centre services market has been projected to grow at double digit rates of over 20 per cent in the two-year period from 2009 to 2011.
The growth will be driven mainly by high speed internet bandwidth service providers, data centre hosting players, power and cooling solution providers, hardware vendors and system integrators, the report said.
The overall Indian data centre services market for 2009 was estimated at Rs6,300 crore. Manufacturing and IT/ITeS were the key verticals that contributed nearly 80 per cent third party data centre services revenue in 2009 and third party data centres contributed about 18 per cent of the total revenues. According to IDC the latter is expected to go up to 22 per cent by 2011.
Captive data centres are projected to grow at a CAGR of 19.9 per cent during 2009-11, with manufacturing and banking, financial services and insurance (BFSI) showing high deployment. Demand from the government sector is expected to improve in 2010.
According to Ravikant Sharma, senior analyst, user research, IDC India, third party data centre services were gaining traction with enterprise customers due to lack of in-house skills, high investments and long gestation period that a data centre called for. However, captives were being preferred in sectors that involve high degree of security, internal controls and tighter management.
According to Arpan Gupta, senior analyst, industry verticals and government research practice, IDC India, shrinking budgets, rising energy costs, increased preference for outsourcing and adoption of blade servers in data centres had led to new engagement and management models – ranging from co-location services to pay-per-use platforms.
He added that the India data centre services market was witnessing new trends in bandwidth pricing, power and cooling solutions. With increased focus on adoption of 'Green IT', enterprises and service providers were both looking at building energy efficient data centres through right sizing, improved system architecture and better design.
With bandwidth costs having declined significantly, data center hosting in India was set to become cheaper and increasing interest in adoption of technologies like cloud computing and grid computing in data centres, the India market was expected to be a long term growth opportunity.
