Datacenter infrastructure hardware enterprise spending in India rises in 2018: Gartner

The software spending will increase to USD 3.6 billion in 2018, a 10% year-over-year increase as compared to hardware spending which will grow moderately this year

Datacenter infrastructure hardware enterprise spending in India rises in 2018: Gartner - CIO&Leader

Datacenter infrastructure hardware enterprise spending in India will total USD 2.7 billion in 2018, a 2.6% rise from 2017, according to Gartner. The software spending will increase to USD 3.6 billion in 2018, a 10% year-over-year increase as compared to hardware spending which will grow moderately this year.

“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.”

As per Gartner, with organizations modernizing their local area network (LAN) and wide area network (WAN) infrastructure to support digital business needs, end-user spending on networking equipment will grow in 2018. (See Table 1) However, on-premises server and storage spending will reduce marginally due to public cloud migration. “Technologies such as software-defined datacenters are helping businesses optimize their existing resources, and as a result reducing overall spend on compute and storage resources,” said Rao.

Spending on IaaS and SaaS Are Increasing in 2018

Majority of organizations are now focused on using cloud services. Moreover, now with the availability of Amazon Web Services and Microsoft Azure in India, more and more Indian organizations are shifting towards infrastructure as a service (IaaS). According to Gartner, IaaS spending in India will reach USD 1 billion in 2018, a rise of 45.5% year-over-year. In addition, there is a rise in the number of migrations of on-premises office suites to software as a service (SaaS) based offerings, such as Google G suite and Microsoft Office 365. As per Gartner, Indian businesses will spend approximately USD 275 million on cloud office suites in 2018, a 37% increase year-over-year.

“While overall end-user spending on servers in India is expected to decline slightly, the hyper converged integrated system (HCIS) segment of the server market is expected to grow further,” said Rao. “HCIS witnessed wide-scale adoption in 2017 thanks to its operational simplicity. The momentum is expected to continue in 2018 with companies migrating their business-critical workloads to HCIS.”


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