Data center services growing at 23 pc: CyberMedia
The third party data center business in India is growing at 34 per cent, according to CyberMedia Research, and this will drive adoption of e-commerce among SMBs through lower prices for servers and new innovations like cloud computing.
Recent analysis by CyberMedia research into India’s data center services market reveals that the market is going to increase at a rate of 23 per cent to reach Rs 11,800 crore in 2012. Another finding is that hosting services are going to cost less by 2012, which could well set the stage to enable more SMBs to create e-commerce solutions as the process would become even more cost effective.
The Third Party Data Center Services market, that makes up for 20 per cent of the market, is slated to grow at 34 per cent to touch Rs 2,800 crore by 2012. In the enterprise segment, penetration of data centers has reached 63 per cent, but among large enterprise, by 2010 the figure was nearly 85 per cent, which shows that not only will prices drop in the future, but vendors should also develop offerings for SMB enterprises as larger business will not require as much growth in capacity. “As more and more enterprises look to outsource the management of their IT infrastructure, third-party data centers will find increased adoption over the next 2-3 years,” said Apalak Ghosh, Lead Analyst, India Emerging Technologies Research, CyberMedia Research.
“Exciting opportunities lie ahead in the third-party data center services space even though this sector faces issues like high real estate and power costs, lack of adequate infrastructure and skilled workforce,” said Kamal Vohra, Lead Analyst, India Software and Services Research, CyberMedia Research.
With the gradual rollout of 3G and WiMax services by telecom service providers through 2011, and launch of data intensive services such as video calls, Live TV, video-conferencing, high speed online gaming and so on, the need to store and launch various application-based services is expected to fuel greater spending on building storage infrastructure. At the same time, these factors would contribute to a direct increase in the overall size of the opportunity in the India Data Center services market.
Another factor, leading to an increase in the demand for enterprise storage solutions, and as a corollary, the demand for data center services in the country, is the revival of the BFSI sector. Demand for financial services was tepid during 2009, but has started showing a healthy revival in the last year. Banking, in particular, is expected to show a healthy growth trend in 2011.
Data Centers fuel adoption of innovative delivery models like Cloud Computing amongst mid-size enterprises, and increase propensity to experiment with new technologies like Virtualization and Green IT amongst large enterprises. The India market is currently witnessing experimentation and adoption of new technologies in order to help enterprises optimise utilisation of resources and maximise benefits.
