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India, has predicted that the India
datacenter services market will touch nearly Rs 10,000 crore by the
end of 2011, a CAGR of 22.7 percent over the two-year period
2009-2011. The overall India datacenter services market was estimated
at Rs. 6,300 crore in 2009.
The fast evolving ecosystem comprising
high speed internet bandwidth service providers, datacenter hosting
players, power and cooling solution providers, hardware vendors and
system integrators (SIs) will spur this growth over the next two
years, according to IDC India report percent'Assessment of Business
Opportunities in the India Datacenter Services Market'.
The key verticals, that contributed
nearly 80 percent of third party datacenter services revenue in 2009,
were Manufacturing and IT/ITeS, with the third party datacenters
constituting about 18 percent of the total revenues. IDC expects this
to go up to 22 percent by 2011.
Captive datacenters ('captives')
will grow at a CAGR of 19.9 percent during 2009-11, with
manufacturing and banking, financial services and insurance (BFSI)
showing high deployment. Demand from the Government sector is
expected to pick up in 2010 and beyond.
“Third party datacenter services are
gaining traction with enterprise customers due to the lack of
in-house skills, high investments and long gestation period that a
datacenter calls for,” stated Ravikant Sharma, Senior Analyst-User
Research, IDC India.
“As the economy further strengthens
in 2011 and IT adoption in SMBs increases further to achieve business
growth objectives, this segment is expected to become the next growth
driver for third party datacenter services,” Ravikant added.
However, the customers will
increasingly look for better technical skills and want to close the
gap between commitment and delivery. Captives are being favoured in
sectors involving high degree of security, internal controls and
tighter management.
“Shrinking budgets, rising energy
costs, increased preference for outsourcing and adoption of blade
servers in datacenters have led to new engagement and management
models -- ranging from co-location services to pay-per-use
platforms”, said Arpan Gupta, Senior Analyst-Industry Verticals
and Government Research Practice, IDC India.
“The India datacenter services market
is witnessing new trends in bandwidth pricing, power and cooling
solutions. With increased focus on adoption of 'Green IT' enterprises
and service providers are both looking to build energy efficient
datacenters through right sizing, improved system architecture and
better design,” Arpan further added.
With bandwidth costs having come down
significantly, datacenter hosting in India is set to become cheaper.
And with heightened interest in implementation of technologies like
cloud computing and grid computing in datacenters, the India market
is expected to be a long term growth opportunity. India is all set to
emerge as an important datacenter hub of the world. With the
Government encouraging companies and service providers to use
alternative energy sources viz. solar, wind and water the rate of
this change will grow.