Everything You Need to Know About the Growth of Indian Hosting Markets

Everything You Need to Know About the Growth of Indian Hosting Markets

India is sweeping into the 21st century as a rising tech mecca. This rise can be demonstrated in everything from the number of developers and tech companies to the rise in tech platforms located in the sub-continent.

Take hosting, for example.

Growth in the hosting sector is slow, but it's steady. As more companies and developers discover the advantages of using a hosting service rather than doing everything in-house, India and other markets will continue to thrive.

According to hosting expert Nathan Finch, "The Indian market is still in the early stages of growth for hosting services. India has over 51 million small businesses and adds more than 800 startups to the economy every year."

What other factors are fueling the Indian hosting markets, and what trends are predicted in the future?

Short History of Hosting in India

The hosting market in India really began about 15 years ago with a company called QualiSpace. It was launched by Hiren and Ashish Shah at a time when India had only a small share of the global market and competition within the country we minimal. Because the tech was still relatively new and the cost was out of reach for many small businesses in India, the fledgling company had to start small and specialize.

Everything You Need to Know About the Growth of Indian Hosting Markets

These days, the Indian colocation and hosting market is expected to generate nearly $2 billion in revenue by the end of 2019. That's an increase of more than half a billion dollars since just three years ago, according to global analyst firm, 451 Research. It's predicted that the cloud computing market alone will experience 25 percent growth by 2021.

What Makes India an Ideal location for Web Hosting?

India has grown along with the tech industry. Within the next year, internet usage is expected to reach more than 700 million people.

That's a lot of hosting needs to be filled. but the hosting market in India is up for the challenge.

The goal of QualiSpace and other hosting companies is to offer the highest quality enterprise hosting service at competitive rates, and to up the ante by providing the best customer service on the planet. The growth in all tech sectors, and the Indian economy in general, has also made SaaS, IaaS, and related services more affordable and widely available.

What makes India ideally suited for such growth?

For starters, it has a younger population and more opportunities for business in a number of sectors. It has become the go-to source for website development, data centers, and other tech-related business, both at home and as an outsourcing provider for companies around the world.

Hosting data centers are strategically located near India's five most populous regions of Bangalore, Chennai, Mumbai, New Delhi, and Pun. In addition, nearly one-third of the market is located near Mumbai, which will help solidify its role as a major player in the Asia-Pacific finance industry. It has the infrastructure, location, and talent to allow Mumbai to serve the city's 21 million residents and expand hyper-scale cloud service beyond the local area.

The government in India is also helping things along by offering eCommerce incentives to the New Delhi colocation market and bolster Bangalore's already thriving tech sector.

What should Indian business owners look for in a hosting datacenter?


Lag times and other issues that affect page loads and increase lag times are bad for business. This can cost online businesses potentially millions of dollars in lost revenue. Hosting data centers should have the capability to meet or exceed the Google benchmark of 200Mbps.

Location, Location, Location

Speed isn't just determined by technology. The location of the server in relation to the clients can affect speed and performance as well. With a growing number of data centers strategically placed in the areas Indian residents and businesses are concentrated, hosting services are well-placed to cover speed and access on your terms.

Customer Service

Reliable customer service is at the heart of any reputable organization. It should be available 24/7. and you should have a range of options to reach them, including live online chat support.


What kind of features or add-ons are available? Are you able to add multiple domains? Do they offer extra bandwidth or storage? Look for a nice balance between additional features and price, and beware of hidden costs.


Security is becoming the biggest concern for developers, end users, and hosting providers alike. The datacenter you choose should use the most current security and encryption standards to protect customers from data leaks and hacks.

Performance Guarantees

How much uptime does the hosting provider offer? Industry standards world-wide are 99 percent or more. Remember, the other side of uptime is downtime. Although there is always going to be some level of planned downtime for upgrades and maintenance, every hour your website is inaccessible can cause revenue losses of $100,000 or more.


Last, but not least, consider the price of your hosting service in relation to all other criteria. Prices should be competitive without sacrificing performance or service.

Trends That Will Influence Hosting Datacenters in the Future

Hosting data centers in India are definitely a growth industry, and the outlook for the next few years is very positive. What are some of the main factors influencing expansion?

Here are the top five for industry analysts and hosting providers to watch for.

  • Slow, but steady growth
  • Availability and expansion of foreign markets
  • Changes in IaaS and SaaS environments that will lead to a focus on "best execution" venues. These are infrastructure that's designed to meet specific workloads
  • An increase in the need for specialized and managed services
  • Targeted marketing based on automation that will attract new customers and open additional markets

Final Thoughts

In the information age, there's enough growth potential in all tech sectors to go around. The tech boom in India will continue to expand into a range of sectors and markets, and there will be a cloud data center that's especially designed to meet the needs of each and every one.

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