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Indian Colocation Market Is Set to Reach the Pinnacle by 2016

While world is closely watching Indian Elections and how the new government in country can change the dynamics of how business is done in India. Indian Data Center players are busy building infrastructure in India, smelling big opportunities coming from world where India would be the most preferred destination for Colocation because of its strategic location and cost effective manpower.

The only problem is the basic infrastructure of country, required by Data Centers like power etc. is yet to be developed. Delhi NCR Region still witnesses power cut of 2-3 hours daily. But the demand of Indian Internet companies is also growing up with the increased number of Internet users and more and more people transacting on Internet. India’s Ecommerce poster FlipKart.com has crossed revenues of 6000 Crores in 2013-14 and this is expected to grow at CAGR of 50%. Such growth is only possible in India.

Indian Colocation is still very small as compared to US. Demand is still higher than supply. In some pockets of US like New Jersey, there is a situation of oversupply. India is possibly the fastest surfacing colocation destination, as of now. It is developing as an economy, and it is once again becoming a golden bird that is attracting world countries due to its magnificent shine. Software and web-based services of India are already prominent.

If we stick to the theme and topic of the post, colocation facilities in India could be a great benefit for the business houses and companies. If we believe the market data of the FY of 2013-2014 (which will soon be published in an Indian English daily, in a day or two), the number of foreign companies seeking colocation services has increased. There are several bases that have made India the hottest destination for colocation services.

Demographical Conditions : India has such an altitude that no other country has. It is considered as the safest place, which is hardly (God Forbid) hit by severe natural calamities. Less earthquakes, not so significant floods, and pleasant weather conditions all through the year make it a safer place for being a perfect web hosting colocation. Even if we have a glance at its political and foreign policies, it appears as the safest and the most stable place on the world map, which is why western countries have shown a great interest in the co-location facilities of India.

Low Risk Factor : The know ledged professionals are the people that have caked a pleasant outlook about India in abroad that it is a place, which is packed with well-informed, conversant professionals. Giants of the world of business have Indian heads, CEOs, and MDs. A faith has homed in the hearts of international organisations that Indian professionals are extremely knowledgeable and decidedly employable.

Low cost : It is the most plausible reason behind the rise of hiring colocation services in India. In actual fact, about eighty to eighty five per cent of foreign investments are carried out just because of the same grounds. The great BPO, KPO and LPO sector bang of the last decade was a result of low cost resources. India has the easiest on the pocket natural resources and manpower in the whole world, which has also boomed up its colocation market.

Consistent Growth : IndiaInfoline, IIFL, a premier financial institution in India, working for about 20 years now, published a report in the year 2012, which said that the Data Center Colocation and Hosting Market in India is going to witness consistency by the financial year of 2016-17. It also asserted that the market is guesstimated to reach approximately US$ 1.30 billion mark, by that time. Over and above, the capacity of the Indian data center market may touch 6.6 million sq., by the year 2016.

About Taiba Fatima (151 Posts)

Taiba Fatima is a Delhi, India based content writer with a knack for technical writing. Her alacrity to explore new horizons and learn technological advancements add piquancy to her writing profession. Apart from technology, she is a passionate blogger and loves to write about other verticals including: BPO sector, Travel, Art & Culture.


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