Monday, May 12, 2014

#Gartner Says India IT Infrastructure Spending to Reach $1.9 Billion in 2014

The Indian IT infrastructure market, comprising of server, storage and networking equipment, will total $1.9 billion in 2014, a 4 percent increase from 2013, according to Gartner, Inc.

Gartner analysts are providing the latest outlook on the Indian data center market during the Gartner Infrastructure, Operations and Data Center Summit, which is taking place here through May 13th at the Hotel Renaissance, Mumbai.

“The global IT infrastructure investment is expected to be almost flat in 2014 and will be primarily driven by hyper scale and data center modernization initiatives,” said Mike Harris, research group vice president at Gartner. “In the global landscape, India is a promising IT Infrastructure market through 2017.”

“Indian IT infrastructure is poised to be a US$2.35 billion market by 2017,” said Naveen Mishra, research director at Gartner. “After sluggish market conditions in 2013, the Indian infrastructure market will witness investments primarily fuelled by key IT initiatives that include mobility, cloud and big data.”

Indian enterprises will be focusing on building intelligent data centers that focus on optimizing existing hardware assets by using additional software capabilities. This will drive increased attention on newer trends such as public cloud, and integrated systems.

Within the Indian IT  infrastructure market, server revenue is forecast to reach US$663 million in 2014, a 1 percent decline from 2013 (see Table 1). The server market is expected to return to positive growth in 2015 when revenue is forecast to total $697 million.

Enterprise networking is the biggest segment with revenue expected to touch US$887 million in 2014. Data center consolidation and virtualization along with cloud and mobility are the key trends influencing network purchases. There is great potential for both users and vendors to leverage some of the emerging technologies to be ready for the future.


Table 1: Indian IT Infrastructure Revenue By Technology (Millions of U.S. Dollars)
Revenue
2013
2014
2015
2016
2017
Servers
670
663
697
721
741
Storage
346
384
436
490
550
Enterprise Networking
846
887
943
995
1054
Total
1,862
1.934
2,076
2,206
2,345
Source: Gartner, (May 2014)


The storage market is on pace to reach US$384 million this year, an 11 percent increase from last year. Storage modernization and consolidation, backup and recovery, and disaster recovery are some of the key drivers to this market, and they are likely to remain relevant drivers over the forecast period through 2017.