India data center mkt to witness rapid growth:IDC

MUMBAI, INDIA: The India data center services market is poised to witness rapid growth in the coming years, says IDC.

The latest report from global ICT market intelligence firm, IDC India, a subsidiary of CyberMedia, said that the overall India data center services market crossed the $1 billion mark in 2007 and was expected to grow at a Compound Annual Growth Rate (CAGR) of 18 per cent over the next two years to touch $1.52 billion by end 2009, said a press release.

Of the total India data center services market in 2007, third party data centers constituted nearly 20 per cent in terms of built-up space and this ratio was expected to increase to 27 per cent by end 2009, the release added.

“With the Indian economy expected to grow at a slower rate consolidation, optimization and productivity will be the key areas of focus for enterprise managements in the near future ”, said Praveen Sengar, senior manager, software and services and industry verticals research, IDC India.

He added that the Captive data centers would undergo optimization and aim to leverage the existing assets, while third party data centers would experience a short-term supply glut.

“The growth in third party data centers in India is primarily driven by the need of businesses to rely on the expertise of a specialist service provider, as in-house management becomes too expensive. This is especially true in an environment of continuously changing and increasingly complex technologies,” Seepij Gupta, assistant manager, software and services research, IDC India.

“ Moreover the enterprise managements are focused on reducing their upfront capital investments (capex), and therefore increasingly looking to outsource their data centre needs, " he added.