Cloud infrastructure as a service will exceed traditional data centre outsourcing spend in India to reach $677 million this year, a new report said. According to market research firm Gartner, traditional data centre outsourcing is forecast to reach $559 million in 2017 in India.
“Organisations that adopt hybrid infrastructure will optimise costs and increase efficiency. However, it increases the complexity of selecting the right toolset to deliver end-to-end services in a multisource environment,” said DD Mishra, Research Director at Gartner, in a statement.
By 2020, 90 percent of organisations will adopt hybrid infrastructure management capabilities. In 2016, traditional worldwide data centre outsourcing (DCO) and infrastructure utility services (IUS) together represented 36.5 percent of the $1.65 billion total data centre 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, the findings showed. 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.
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 centre services will coexist with a minority share alongside the industrialised and digitalised services,” added Mishra. ALSO READ: Global Cloud compute services market to reach $68.4 billion in 2020: Gartner
Through 2020, integrated systems in India will shave off up to 25 percent of the combined spend on servers and storage.