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India's IT Infrastructure Spending On Pace to Reach $1.9 Billion in 2014

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Note -- this news article is more than a year old.

The Indian IT infrastructure market, comprising of server, storage and networking equipment, will total $1.9 billion in 2014, a 4 percent increase from 2013, according to Gartner.

"The global IT infrastructure investment is expected to be almost flat in 2014 and will be primarily driven by hyper scale and data center modernization initiatives," said Mike Harris, research group vice president at Gartner. "In the global landscape, India is a promising IT Infrastructure market through 2017."

"Indian IT infrastructure is poised to be a USD2.35 billion market by 2017," said Naveen Mishra, research director at Gartner. "After sluggish market conditions in 2013, the Indian infrastructure market will witness investments primarily fuelled by key IT initiatives that include mobility, cloud and big data."

Indian enterprises will be focusing on building intelligent data centers that focus on optimizing existing hardware assets by using additional software capabilities. This will drive increased attention on newer trends such as public cloud, and integrated systems.

Within the Indian IT infrastructure market, server revenue is forecast to reach USD663 million in 2014, a 1 percent decline from 2013 (see Table 1). The server market is expected to return to positive growth in 2015 when revenue is forecast to total $697 million.

Enterprise networking is the biggest segment with revenue expected to touch USD887 million in 2014. Data center consolidation and virtualization along with cloud and mobility are the key trends influencing network purchases. There is great potential for both users and vendors to leverage some of the emerging technologies to be ready for the future.

Indian IT Infrastructure Revenue By Technology (Millions of U.S. Dollars)

Revenue 2013 2014 2015 2016 2017
Servers 670 663 697 721 741
Storage 346 384 436 490 550
Enterprise Networking 846 887 943 995 1054
Total 1,862 1.934 2,076 2,206 2,345

Source: Gartner, (May 2014)

The storage market is on pace to reach USD384 million this year, an 11 percent increase from last year. Storage modernization and consolidation, backup and recovery, and disaster recovery are some of the key drivers to this market, and they are likely to remain relevant drivers over the forecast period through 2017.

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Tags: India