According to a research conducted by the Gartner, a leading research and advisory firm, India is anticipated to be the second largest destination for data center infrastructure management within the entire Asia Pacific (APAC) region. The country is further forecasted to be the second rapidly growing market in the APAC region by the year 2015.

The data center infrastructure segment in India comprises of networking, server, and storage equipment. The segment is expanding at a rate of 5.4% per annum and is expected to reach nearly $2.03 billion by 2015, from the current $1.92 billion market. This indicates that a stronger return on growth is likely to be seen in the next year, which will be fuelled by an overall resurgence in projects across various verticals, such as insurance, banking, government, and telecom sector.

Even though, most of the SMBs (small-to-mid size businesses) focus on building on-premises data center infrastructure, large size businesses within the above mentioned segments look for infrastructure replacements that goes in line with their growth related projects with better mobility and ability to handle big data.

Today, companies across the globe demand cloud providers for hosting their data locally in order to meet data sovereign requirements. In this light, about 100 nations have already implemented laws dictating how private enterprises and the governments handle personal information. This demand is, in particular, high in the BFSI (banking and financial institutions), government, and telecom sectors and hence is pushing big cloud service providers to set-up data centres in the country.

Data center virtualization and consolidation are the key factors that are influencing companies to leverage the emerging technologies for effectively bridging their widening technology & efficiency gaps. Indian cloud players are striving to build intelligent data center facilities that primarily focus on optimizing the existing hardware assets by leveraging the additional software capabilities, which in turn, will boost the enterprises focus on adopting public cloud as well as other integrated systems.

Besides large enterprises, most of the small and midsized companies are making capital investments in the data centers in India in order to optimize their storage capacities and to streamline their IT operations. As a result, the country’s data center market is expected to witness a constant rise with a continuous increase in their storage capacity of approximately 60%-70% in the next five years.

Moreover, the evolving concept of software defined data center is further strengthening its hold in the data center market. A strong authority coupled with control provision will continue to drive the growth trajectory in the Indian data center market.