Cloud IaaS to exceed traditional data center outsourcing spend in 2017

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Cloud Infrastructure-as-a-Service will see new highs this year exceeding traditional datacenter outsourcing spend. As per a Gartner report, traditional datacenter spend in India is predicted to reach $559 million while Cloud IaaS spending will sum around $677 million, in 2017.

Cloud IaaS services represent a cost effective and optimized model of managing infrastructural needs of the organizations and act as the reason why most of them go for these integrated systems.

Talking about the trend, Gartner Research Analyst – DD Mishra said, “As the demand for agility and flexibility grows, organizations will shift toward more industrialized, less-tailored options. Organizations that adopt hybrid infrastructure will optimize costs and increase efficiency. However, it increases the complexity of selecting the right toolset to deliver end-to-end services in a multisourced environment.”

Gartner also predicts that by 2020, hybrid infrastructure management capabilities will be high in demand with over 90 percent of organizations opting for it.

By 2021, the infrastructure utility services (IUS) and the data center outsourcing (DCO) market will account for 22 percent of the predicted $3.8 billion data center service market (DCS). Earlier, in 2016, DCO/IUS together contributed 36.5 percent of the total $1.65 billion DCS market per the report.

With this, in India, the cloud IaaS market is expected to surpass $2.1 billion in respect to end-user spending by 2021, which is approximately three times that of the traditional DCO services.

The end-user traditional DCO spending is expected to reach $693 million in 2021, that will be more than half of the overall DCS spending of $3.8 billion approximately, as per Gartner.

This means that by 2021 traditional data center services will coexist with a minority share alongside the industrialized and digitalized services.” added DD Mishra.

With digital transformation being in full swing, the IaaS market will evolve dynamically and service providers are expected to get new opportunities beyond infrastructure.

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