Cloud infrastructure as a service will exceed traditional data center outsourcing spending in India during 2017, according to Gartner.
Traditional data center outsourcing is forecast to reach $559 million in 2017, while cloud infrastructure as a service spending will total $677 million this year.
The market research firm forecasts that by 2021, cloud compute and storage as a service will be nearly three times that of traditional data center outsourcing in terms of spending in India.
“As the demand for agility and flexibility grows, organizations will shift toward more industrialized, less-tailored options,” said DD Mishra, research director at Gartner.
“Organizations that adopt hybrid infrastructure will optimize costs and increase efficiency. However, it increases the complexity of selecting the right toolset to deliver end-to-end services in a multisourced environment.”
Gartner predicts that by 2020, 90 percent of organizations will adopt hybrid infrastructure management capabilities.
In 2016, traditional worldwide data center outsourcing (DCO) and infrastructure utility services (IUS) together represented 36.5 percent of the $1.65 billion total data center services (DCS) market in India, consisting of DCO/IUS, hosting and cloud infrastructure as a service (IaaS).
This is expected to tilt further toward cloud IaaS and hosting, and by 2021, DCO/IUS will be approximately 22 percent of the expected $3.8 billion DCS market in India.
By 2021, the cloud IaaS market in India will exceed $2.1 billion in end user spending, which will be nearly three times that of traditional DCO in India.
End user spending of traditional DCO in India will reach $693 million in 2021, and it will represent more than half the overall DCS spending of approximately $3.8 billion.
Through 2020, integrated systems in India will cut up to 25 percent of the combined spend on servers and storage.
