The spending on data center infrastructure hardware in India is expected to reach $2.7 billion this year, up 2.6% from a year before, as per the leading analyst firm Gartner.
The data center infrastructure hardware is divided into three segments: Servers, External controller based storage, and Enterprise network equipment.
The growth in spending on data center infrastructure hardware will be driven by the rise in spending on the enterprise networking equipment.
As companies modernize their wide area network (WAN) and local area network (LAN) infrastructure to support the digital transformation initiatives, the spending on enterprise networking equipment will grow by 10%, from $1.31 million in 2017 to $1.44 million in 2018.
“Digital business initiatives are forcing infrastructure and operations leaders in India to adopt a hybrid IT infrastructure model that can deliver reliable, innovative and cost-effective solutions to the business in a timely manner,” said Santhosh Rao, research director at Gartner. “This positions cloud computing as a critical component of the hybrid model.”
On the other hand, the spending on servers segment and external controller-based storage segment is expected to decline by 1% and 12.5%, respectively. Gartner said that the decline is marginally a result of enterprises migrating to public cloud.
“Technologies such as software-defined data centers are helping businesses optimize their existing resources, and as a result reducing overall spend on compute and storage resources,” added Mr. Rao.
Gartner further reported that spending on infrastructure-as-a-service (IaaS) and software-as-a-service (SaaS) will significantly increase in 2018.
A majority of Indian organizations leverage cloud services and hyperscale data centers, to develop and host the business applications. Hence, the spending on IaaS services in 2018 will reach $1 billion, a 45.5% increase year over year.
With more organizations moving their on-premise office suites to SaaS-based services like Microsoft Office 365 and Google G-Suite, the spending on SaaS in the country will reach $275 million in 2018, a rise on 37% year over year.
Gartner will share additional analysis on data center and IT operations trends at Gartner global IT Infrastructure & Operations events.