Investments in IaaS to grow 28% in four years

Investments in Infrastructure as a Service (IaaS) solutions are expected to grow nearly 28 percent over the next four years — fueled by the IT infrastructure expansion among India enterprises.

Spending on server and co-location solutions will be the biggest contributor to IaaS investments, driving close to 60 percent of forecasted investments in IaaS, said AMI-Partners.

Industry verticals such as banking, insurance and telecom as well as government segment will be investing in IaaS. Large to mid-market enterprises are typically turning to IaaS solutions to replace their existing outdated infrastructure. SMBs are looking at IaaS for low acquisition and maintenance cost.

TELEHOUSE data center
The report said some of the large businesses in India who do not have captive data centers have already adopted third party data centers.

“Keeping in mind the ever present need to operate within restricted budgets, a greater demand for infrastructure upgrades and the rise in application workloads, will increase interest in third party data centers among SMBs as well as government owned enterprises,” said Somnath Das, research manager at AMI-Partners.

The growth in data will force Indian enterprises to focus on using less expensive, active, concerted, and adaptive methods to analyze, store and share data. Digitization and the need for documentation of records and regulatory compliance measures will act as major drivers for the adoption of data centers.

Both hosted and captive data centers are expected to increase their foot hold. Hosted data centers are likely to grow at a faster pace.

Meanwhile, IT research firm Gartner last year said the Indian IT infrastructure market will grow 3.3 percent to $2.02 billion in 2015. The IT infrastructure market includes server, storage and networking equipment.

Indian IT infrastructure will be a $2.29 billion market by 2018. Indian enterprises will focus on creating integrated data centers for optimizing existing IT assets and delivering non-stop IT services to business. This will drive emphasis on public cloud, Devops and software defined networking, said Gartner.

Baburajan K
[email protected]