Indian datacentre services market to touch $2.2 Billion

Bangalore: IT intelligence firm, IDC India, has predicted that the India datacentre services market will touch nearly $2.2 billion by the end of 2011, a CAGR of 22.7 percent over the two-year period 2009-2011. The overall India datacentre services market was estimated at around $1.3 billion in 2009.

The fast evolving ecosystem comprising high speed internet bandwidth service providers, datacentre hosting players, power and cooling solution providers, hardware vendors and system integrators (SIs) will spur this growth over the next two years, according to IDC India report "Assessment of Business Opportunities in the India Datacentre Services Market." The key verticals, that contributed nearly 80 percent of third party datacentre services revenue in 2009, were Manufacturing and IT/ITeS, with the third party datacentres constituting about 18 percent of the total revenues. IDC expects this to go up to 22 percent by 2011.

According to IDC, captive datacentres are expected to grow at a CAGR of 19.9 percent during 2009-11, with manufacturing and banking, financial services and insurance (BFSI) showing high deployment. Demand from the government sector is expected to pick up in 2010 and beyond. "Third party datacenter services are gaining traction with enterprise customers due to the lack of in-house skills, high investments and long gestation period that a datacentre calls for," said Ravikant Sharma, Senior Analyst, User Research, IDC India.