Cloud Computing & SaaS News

Cloud infrastructure market to outgrow legacy datacenters in 2017: Gartner India

By 2020, Integrated Systems Will Shave Off Up to 25 Percent of Combined Spend on Servers and Storage

Cloud infrastructure as a service will exceed traditional data center outsourcing spend in India during 2017, according to Gartner. In India, Traditional data center outsourcing is forecast to reach $559 million in 2017, while cloud infrastructure as a service spending will total $677 million this year.

Gartner analysts said that by 2021, cloud compute and storage as a service will be nearly three times that of traditional data center outsourcing in terms of spending in India.

“As the demand for agility and flexibility grows, organizations will shift toward more industrialized, less-tailored options,” said DD Mishra, research director at Gartner. “Organizations that adopt hybrid infrastructure will optimize costs and increase efficiency. However, it increases the complexity of selecting the right toolset to deliver end-to-end services in a multisourced environment.”

In 2016, traditional worldwide data center outsourcing (DCO) and infrastructure utility services (IUS) together represented 36.5 percent of the $1.65 billion total data center services (DCS) market in India, consisting of DCO/IUS, hosting and cloud infrastructure as a service (IaaS). This is expected to tilt further toward cloud IaaS and hosting, and by 2021, DCO/IUS will be approximately 22 percent of the expected $3.8 billion DCS market in India.

By 2021, the cloud IaaS market in India will exceed $2.1 billion in end user spending, which will be nearly three times that of traditional DCO in India. End user spending of traditional DCO in India will reach $693 million in 2021, and it will represent more than half the overall DCS spending of approximately $3.8 billion.

“This means that by 2021 traditional data center services will coexist with a minority share alongside the industrialized and digitalized services,” said Mishra.

Through 2020, integrated systems in India will shave off up to 25 percent of the combined spend on servers and storage. Gartner’s interactions with end-user organizations in India reflect a strong willingness to consider alternate delivery models for infrastructure requirements. Users are keen to understand newer technologies such as integrated systems and hyperconverged infrastructures, as well as cloud-based architectures.

A further analysis of all of Gartner’s client interactions indicate that an average of 20 percent of organizations augmenting storage capacities in India are actively considering integrated systems.

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