India IT infrastructure spend to reach $2.3B

India IT infrastructure spend to reach $2.3B

Summary: Big data, cloud, social, and mobility are finding business use cases and bringing a paradigm shift in the way IT impacts organizations, pushing India's spending in IT infrastructure to US$2.3 billion by 2014.

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The Indian IT infrastructure market, comprising server, storage, and networking equipment, is expected to grow 9.7 percent in 2013 to reach US$2.1 billion, with revenues hitting US$2.3 billion in 2014, according to a Gartner report released on Monday.

"Despite global economic challenges, India provides strong growth opportunities across segments including infrastructure [which] alone is expected to surpass US$2.9 billion in 2017," Naveen Mishra, research director at Gartner said in a statement.

"The nexus of forces--big data, cloud, social and mobility--are finding real-time business-driven use cases, bringing a paradigm shift in the way IT is delivering business impact and, hence, changing the role of an Indian CIO," Mishra added.

The Indian IT infrastructure market is driven by hardware refresh, optimization, and consolidation efforts. New data center buildout, primarily driven by service providers, is providing added impetus.

The server segment accounts for the biggest chunk of the market totaling US$753 million in 2013. It is expected to increase to US$962.3 million in 2017.

"New datacenter implementations to meet server consolidation and virtualization needs, combined with campus upgrades, and growing adoption of multimedia applications and mobility, are driving the networking market," said Naresh Singh, principal research analyst at Gartner. "Future demand and dynamics of the market will also be heavily influenced by these trends as they intensify, and other disruptive technologies like cloud, social and big data take centerstage."

Indian IT infrastructure revenue by technology (in US$ millions)

Revenue

2012

2013

2014

2015

2016

2017

Servers

707.4

753

792.3

836.8

892

962.3

Storage

346.3

374.2

430.3

507.2

604.7

702.3

Enterprise LAN

584.8

676.7

740.8

793.9

846

890.7

Enterprise WAN

266.3

284.7

305.1

327

354.3

373.8

Total

1,904.7

2,088.6

2,268.4

2,464.8

2,697

2,929.1

Source: Gartner, May 2013

Topics: Servers, Big Data, Cloud, Mobility, Social Enterprise

Swati Prasad

About Swati Prasad

Swati Prasad is a New Delhi-based freelance journalist who spent much of the mid-1990s and 2000s covering brick-and-mortar industries for some of India's leading publications. Seven years back when she took to freelancing, India was at the peak of its "outsourcing hub" glory and the world of Indian IT, telecom and Internet fascinated her. A self-proclaimed technophobic, Swati loves to report on anything that's remotely alien to her--be it cloud computing, telecom, BPOs, social media, e-government or software and hardware, and also how high-tech sectors impact the Indian economy.

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