Explosion of Indian Datacenter Market. What is the Future & Impact?
With over three decades of experience in sales, marketing and general management, Sanjay holds expertise in strategy development and execution.
India data center market size by investment will reach over $4 billion by 2025, growing at a CAGR of around five percent. This obviously is a result of the digital adoption by the citizens – thanks to the falling prices in mobile data & broadband, increased connectivity and push by the government.
Given the fact that the consumer today is truly empowered defining the new W.W.W. (What I want, Where I want & When I want) add to that stimulus provided by COVID. Add to that digitalisation drive by the government, the industry has no choice but to adapt and be at the beck and call of the consumer. This means that businesses will set up process/applications which will allow them to interact with the customer digitally and provide an engaging experience. So it’s kind of a snowball - consumers will change at the speed of technology; business will adapt at the speed of the consumer – thereby generating more and more data and hence data centers.
To reach out to their respective customers in ever expanding geographies, the traditional “On Premise' Datacentre will be split into three:
a.Part of it will move into the cloud
b.Part of it will move to the edge (in the shape of Micro or Modular DC) – closer to the customer
c.Part will remain as an ‘On Premise’ DC.
We will see data centers in Malls, Housing Complexes and others – they will follow where the consumer is, plus our smart cities. With this scenario the management of the data centers will become more complex from all aspects.
It is important to note that the consumer behaviour has changed over the past few years due to digitisation and the rate of change of the consumer behaviour will be even faster in the future. Given this scenario it is important for the businesses to be able to adapt quickly. This means that the infrastructure and more so the data centres would have to be flexible/agile to address to the ever-evolving needs of the market. Moving forward Datacentres that will survive (and hence the business) are the ones that are built for change.
There has been an increased use of data and internet in the country. This is primarily driven by expanding the reach of social media and increased use of smart devices. With more and more Indian companies expected to embark on their digital transformation journeys, McKinsey has identified India as the second fastest-growing digital economy and projected that IT and communications sector will double in size by 2025 to contribute $ 355-435 billion to the GDP. COVID-19 led lockdown has accelerated the usage of data resulting in increased demand for bandwidth as well as storage capacities. The Government of India initiatives such as Digital India and emphasis on self-reliance and data protection through data localization is expected to increase the volume of data in the country, which will result in an increased demand for the data center and cloud services.
The COVID-19 pandemic has created a shift towards the adaptation of cloud services that are more secure and scalable. According to NASSCOM, cloud spending in India is estimated to grow at a CAGR of 30 percent to reach the $7.1 billion in 2022. Increase investment activity is expected from private players. The 5G technology, which is likely to be launched in 2021, will push the adoption of IoT-enabled products in the Indian market. The market for big data and IoT is still in the nascent stage of growth. However, it has huge potential to be the strongest driver for data center investments in the Indian market.
Data center businesses currently need agility at the core of their thought to be ready and relevant for the ever-rising demand of performance and speed and the need to do more business. An agile data center solution should be any business’s choice to prepare for the changing times.
India data center market size by investment will reach over $4 billion by 2025, growing at a CAGR of around five percent. This obviously is a result of the digital adoption by the citizens – thanks to the falling prices in mobile data & broadband, increased connectivity and push by the government.
Given the fact that the consumer today is truly empowered defining the new W.W.W. (What I want, Where I want & When I want) add to that stimulus provided by COVID. Add to that digitalisation drive by the government, the industry has no choice but to adapt and be at the beck and call of the consumer. This means that businesses will set up process/applications which will allow them to interact with the customer digitally and provide an engaging experience. So it’s kind of a snowball - consumers will change at the speed of technology; business will adapt at the speed of the consumer – thereby generating more and more data and hence data centers.
To reach out to their respective customers in ever expanding geographies, the traditional “On Premise' Datacentre will be split into three:
a.Part of it will move into the cloud
b.Part of it will move to the edge (in the shape of Micro or Modular DC) – closer to the customer
c.Part will remain as an ‘On Premise’ DC.
We will see data centers in Malls, Housing Complexes and others – they will follow where the consumer is, plus our smart cities. With this scenario the management of the data centers will become more complex from all aspects.
It is important to note that the consumer behaviour has changed over the past few years due to digitisation and the rate of change of the consumer behaviour will be even faster in the future. Given this scenario it is important for the businesses to be able to adapt quickly. This means that the infrastructure and more so the data centres would have to be flexible/agile to address to the ever-evolving needs of the market. Moving forward Datacentres that will survive (and hence the business) are the ones that are built for change.
There has been an increased use of data and internet in the country. This is primarily driven by expanding the reach of social media and increased use of smart devices. With more and more Indian companies expected to embark on their digital transformation journeys, McKinsey has identified India as the second fastest-growing digital economy and projected that IT and communications sector will double in size by 2025 to contribute $ 355-435 billion to the GDP. COVID-19 led lockdown has accelerated the usage of data resulting in increased demand for bandwidth as well as storage capacities. The Government of India initiatives such as Digital India and emphasis on self-reliance and data protection through data localization is expected to increase the volume of data in the country, which will result in an increased demand for the data center and cloud services.
The 5G technology, which is likely to be launched in 2021, will push the adoption of IoT-enabled products in the Indian market
The COVID-19 pandemic has created a shift towards the adaptation of cloud services that are more secure and scalable. According to NASSCOM, cloud spending in India is estimated to grow at a CAGR of 30 percent to reach the $7.1 billion in 2022. Increase investment activity is expected from private players. The 5G technology, which is likely to be launched in 2021, will push the adoption of IoT-enabled products in the Indian market. The market for big data and IoT is still in the nascent stage of growth. However, it has huge potential to be the strongest driver for data center investments in the Indian market.
Data center businesses currently need agility at the core of their thought to be ready and relevant for the ever-rising demand of performance and speed and the need to do more business. An agile data center solution should be any business’s choice to prepare for the changing times.
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