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India IT infra spending on course to touch US$2.2 Billion in 2017

Key Issues Facing Data Center Leaders Being Addressed at the Gartner Infrastructure, Operations and Data Centre Summit, 4-5th May, in Mumbai

IT infrastructure spending in India will total $2.2 billion in 2017, a 1.5 percent increase from 2016, according to Gartner, Inc. The IT infrastructure market includes server, storage and enterprise networking equipment.

Gartner analysts are providing the latest trends shaping the future of the data center market during the sixth annual Gartner Infrastructure, Operations and Data Center Summit, which is taking place here through Friday at the Hotel Renaissance, Mumbai.

“Digital transformation is bringing in new sets of challenges and opportunities for Indian infrastructure leaders,” said Naveen Mishra, research director at Gartner. “They have the unique opportunity of being at the helm of this shift within their organization, provided they align with the imperatives of the digital world. Modern, lean, agile and secure infrastructure is the business need.”

Digital workplace is the new mantra for enterprises as more digital natives join the workforce. Business and IT leaders are focused on building an agile infrastructure that can address the needs of the changing workforce demographics. Cloud computing is expected to become pervasive as an infrastructure layer, given its elasticity, and it creates a need for IT leaders to plan for managing various cloud options.

Enterprise networking is the biggest segment within the Indian IT infrastructure market with revenue expected to reach $1.1 Billion in 2017. Software defined networking and SD-WAN are other options which organizations are evaluating while they build their next generation network infrastructure, to enable a seamless digital experience for customers, employees and partners.

Table 1

IT Infrastructure Spending in India by Segment (Millions of U.S. Dollars)

Segment 2016 2017 2018 2019 2020
Enterprise Networking   1,063   1,127   1,148   1,157   1,147
Storage      346      352      365      378      387
Servers      765      727      768      820      822
Total   2,174   2,206   2,282   2,354   2,356

Source: Gartner (April 2017)

“With a revenue projection of $352 million in 2017, storage investment will witness a small increase primarily driven by technology alternatives such as SDS, and flash based storage coupled with continued focus on SAN based storage,” said Mishra.

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