Indian Data Center Market and Emerging Technologies

Consistent growth in the demand for IT services is empowering exports of digital solutions in India. IT based operations are poised to get a huge boost according to the latest report. This fact is confirmed by the massive upgrading of data center facilities to enable companies acquire multi-tenant infrastructures. In fact, some of the major IT players of the world have already established their data center footprint in India.

India’s data center panorama

Current data center landscape in India consists of four major cities including Delhi, Mumbai, Chennai, Bangaluru, and Pune that account for more than eighty percent supply of data center services in India.

The five metro cities deserve to be termed at India’s leading data center hubs that serve multi-tenant infrastructures. These data center hubs have witnessed several strategic partnership and acquisition deals involving big IT players in the world.

Mumbai, the commercial capital of India is home to a large volume of data centers that is almost thirty percent of the total number of Indian data centers. It is observed that the DC facilities are developing advanced cloud Hosting infrastructures to meet rising demands of their clients based across the world.

Thanks to the phenomenal rise of e-commerce industry, India’s capital town New Delhi is steadily emerging as a perfect destination for providers of data center facilities to major ecommerce players in India. One can come across massive data center infrastructures in Noida, Gurugram, and other locations in and around the National Capital Region (NCR).

Being home to a plethora of IT companies, Bangaluru is blessed with an ideal ecosystem that provides immunity to natural disasters for development of data center infrastructures. Converged net connectivity can be an additional advantage to setup data center facilities in the garden city.

Data Center providers in India have fought against odds to enrich their spectrum of services that include managed hosting, cloud services spanning public, private and hybrid platforms, and enterprise cloud solutions just to name a few.

These factors have boosted Indian data center industry that has crossed the turnover of $2 billion. There is another factor to empower digital business in India and it is nothing but government sponsored campaigns such as Digital India and Make in India to name a few. Thanks to encouraging policies of the government, the market for data center business is poised to exceed $4 billion by end of this year.

Models of data centers

There are two principal models of data centers adopted by businesses to facilitate their digital workloads. Captive or on-premise data centers have long been enabling organizations to look after their internal workloads. These are built and operated by organizations with help of internal staff.

In contrast, hosted services are availed by outsourcing data center facilities that helps organizations eliminate need to hire staff and manage infrastructures on their own. Data center outsourcing helps companies use Rackspace colocation and other supportive services such as cooling, security, power, bandwidth, and round the clock monitoring among others.

On-premise data centers are fast being replaced by outsourced data center services as there is no need to spend a fortune for establishing capital intensive in-house infrastructures. The migration is mainly driven by large sized organizations that operate in regulated ecosystem such as health, insurance, finance, and banking sectors.

Local concerns drive DC business

Local regulations and government directives have resulted in enactment of laws that promote DC localization. There is a growing demand for local data center services because companies from critical sectors including BFSI are reluctant to outsource their data center needs to overseas vendors.

Interestingly, companies from US and UK are planning to setup their data center facilities in India to ensure compliance with local data center laws. In fact, a couple of organizations such as IBM and NTT have already developed their data center infrastructures here.

Cloud native services

There is a growing breed of companies that are eying possibilities to setup their data centers in cloud by leveraging analytics and cloud mobility. The unique structure of cloud enables organizations to gain outstanding flexibility and scalability among other features.

There is a definite shift to IaaS adoption indicating a slow and steady migration from traditional data center services to cloud enabled solutions. Cloud enabled services are estimated to drive as many as seventy five percent of the organizations. Rest of the enterprises will slowly abandon outsourced services of legacy data centers to embrace cloud enabled IaaS solutions.

Since cloud enabled data center services are easy to adopt and are backed by excellent cost efficiency of pay as you go billing model, there are confirmed reports to suggest that cloud hosting services and IaaS will grow exponentially to replace two third population of legacy data centers.

In conclusion

India is blessed with a huge potential to establish herself as a global destination for data center market by leveraging cloud computing and other emerging technologies.