Indian IT Infrastructure Market to Reach $1.93 Billion in 2016: Gartner

The Indian IT infrastructure market will increase marginally to $1.93 billion (roughly Rs. 12,807 crores) this year whereas by 2020, it is likely to grow to $2.13 billion (roughly Rs. 14,137 crores), Gartner said Tuesday.

The IT infrastructure market includes server, storage and enterprise networking equipment.

In 2015, the market stood at $1.90 billion (roughly Rs. 12,611 crores). "The Indian IT infrastructure market will total $1.9 billion in 2016, a 1 percent increase from 2015," Gartner said.

Indian enterprises will continue to focus on optimising their infrastructure and operations budgets in 2016, it added.

"Optimisation is primarily driven with an objective to create next generation data center architecture that can support the ever increasing challenges of digital business. With the emergence of bimodal IT, there are a lot of investments made in Mode 1, and there is an increasing focus on building Mode 2 infrastructure," Naveen Mishra, research director at Gartner said.

Gartner said Mode 1 workloads are witnessing investments in areas such as cloud, software defined storage and network coupled with integrated systems.

"Public cloud is increasingly becoming relevant for data center managers and IT leaders in India," it added.

Enterprise networking is the biggest segment within the Indian IT infrastructure market with revenue expected to total $848 million (roughly Rs. 5,628 crores) in 2016.

"This is an area where enterprises are focusing heavily in terms of their optimisation efforts and evaluating software driven networking, as this is becoming a barrier to a seamless digital experience," Gartner said.

Mishra said with a revenue projection of $253 million (roughly Rs. 1,679 crores) in 2016, storage investment will witness a decline from last year primarily due to improved performance.

"Enterprises are increasingly investing in software defined storage, evaluating alternate, cheaper devices, such as flash storage, which is helping them to contain the ever increasing storage costs," he added.