Search for

India's datacenter market to cross USD 2 bn by 2019: 451 Research

India's datacenter market to cross USD 2 bn by 2019: 451 Research

Latest report by 451 Research estimates that India’s colocation and managed hosting services market would cross the 2 billion USD in revenue mark by 2019, up from 1.3 billion USD in 2016.

This cool button delivers CIO stories to you on Facebook:

The IT industry is one of the biggest private-sector employers in India with IT services being one of the most significant exports of the country. The demand for digital services is causing the Indian ecosystem to expand quickly in order to manage IT operations on a massive scale, says a recent report by 451 Research. 
As the economy continues to progress, local and international IT service providers are scaling-up their operations across Indian cities to reach to India’s large customer space, pushing the need of multi-tenant data center abilities, according to the report. As a result of the exapnding IT operations, local service providers players in the sector have been seen to make strategic partnerships and acquisition deals with some of the top global players.
The report, ‘Mumbai, New Delhi and Bangalore: Multi-Tenant Datacenter Markets’, provides an overview of the dynamics and trends in the Indian data center market across metro cities. The report finds that 84 percent of India’s data center supply is presently concentrated in five cities, namely Mumbai, Chennai, New Delhi, Bangalore and Pune. 
The report has also revealed that one-third of the entire data center foot print of the country is contained in Mumbai. Being the financial capital of India, the city is constantly adding infrastructure to meet the rising presence of global cloud and IT service providers setting up their operations here.
New Delhi also holds a decent proportion of India’s data centers, most of which are accounted to factors such as the rise of e-commerce players around the city,  government's Digital India initiatives and a high number of disaster-recovery data centers of state and private entities, tells the report.
Bangalore, the relatively disaster-free IT services hub according to the report, also has a large infrastructure base. By being at the convergence of network connectivity in the country, the city plays a unique role in India’s economy. 451 Research says there will be a steady rise in the data center infrastructure of the city in coming years with expanding digital transformation.
“Despite the challenges, the opportunity for datacenter companies to thrive in India is enormous. Most homegrown providers already offer a range of managed services, and many have even launched their own public and private cloud platforms. The success of local companies such as Netmagic Solutions, NxtGen, Reliance Communications and Sify Technologies has even resulted in partnerships and acquisitions involving global players including ST Telemedia and NTT Communications, and we expect more on the horizon,” writes Teddy Miller, Associate Analyst - 451 Research, and author of the report.
451 Research predicts continuous growth for cloud computing as-a-service sector in India, with a compound annual growth rate of 25 percent over the coming few years. The report estimates that India’s colocation and managed hosting services market would cross 2 billion USD in revenue by 2019, up from 1.3 billion USD in 2016.