With the economy on a road to recovery, the data centre services market in India is expected to witness a CAGR growth of 22.7% over the two-year period of 2009-2011 and touch Rs 10,000 crore by the end of 2011, research firm IDC said. The overall India data centre services market was estimated at Rs 6,300 crore in 2009.
With the cost of bandwidth going down, the data centre hosting in India is expected to become cheaper. At the same time heightened interest in implementation of technologies like cloud computing and grid computing in data centres, the India market is expected to be a long-term growth opportunity. According to IDC, the key verticals that contributed nearly 80% of third party data centre services revenue in 2009 were manufacturing and IT/ITeS, with the third party data centres constituting about 18% of the total revenues. IDC expects this to go up to 22% by 2011. Captive data centres (captives) are expected to grow at a CAGR of 19.9% during the same period, with manufacturing and banking, financial services and insurance showing high deployment. Also, demand from the government sector is expected to pick up in 2010 and beyond.
?Third party data centre services are gaining traction with enterprise customers due to the lack of in-house skills, high investments and long gestation period that a data centre calls for?, said Ravikant Sharma, senior analyst, user research, IDC India. The fast evolving ecosystem comprising high speed internet bandwidth service providers, data centre hosting players, power and cooling solution providers, hardware vendors and system integrators will spur this growth in two years, says IDC.