Data center infrastructure market to grow 2.6% in India

Indian enterprises will be spending $2.721 billion (+2.6 percent) on data center infrastructure hardware in 2018 vs $2.652 billion in 2017, according to Gartner.

Business organizations will spend $944 million (–1 percent) on servers, $335 million (–12.5 percent) on storage, $1.442 billion (+10 percent) on networking in 2018.

Dell EMC, HPE, Cisco, Juniper, Microsoft, IBM, Oracle, among others, will benefit from the data center spending this year.
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The Gartner report said enterprise spending on data center infrastructure software will rise to $3.6 billion (+10 percent) in 2018.

“Digital business initiatives are forcing infrastructure and operations leaders in India to adopt a hybrid IT infrastructure model that can deliver reliable, innovative and cost-effective solutions to the business in a timely manner,” said Santhosh Rao, research director at Gartner.

Spending on networking equipment is expected to grow in 2018 as organizations modernize their local area network (LAN) and wide area network (WAN) infrastructure to support digital business needs.

On-premises server and storage spending will decline marginally as a result of public cloud migration.

Technologies such as software-defined data centers are helping businesses optimize their existing resources, and as a result reducing overall spend on compute and storage resources.

The availability of data centers such as Amazon Web Services and Microsoft Azure in India, as well as local providers ramping up to provide public cloud services, have become compelling reasons for Indian organizations to move toward infrastructure as a service (IaaS). Spending on IaaS in India is set to reach $1 billion (+45.5 percent) in 2018.

The number of migrations of office suites to software as a service-based offering, such as Google G suite and Microsoft Office 365 will increase. Indian businesses are expected to spend close to $275 million (+37 percent) on cloud office suites in 2018.

Gartner said overall end-user spending on servers in India is expected to decline slightly, the hyper-converged integrated system (HCIS) segment of the server market is expected to grow further.