Indian IT Infrastructure Spending to Reach $1.9 Billion in 2016: Gartner

Indian IT

According to the world’s leading IT research and advisory company Gartner, IT infrastructure spending in India is set to hit $1.9 billion this year. The Indian IT infrastructure consists of server, storage, and enterprise networking equipment.

The press release states that the Indian IT infrastructure market will register a 1 percent increase from 2015.

Naveen Mishra, Research Director at Gartner said,

Indian enterprises will continue to focus on optimizing their infrastructure and operations budgets in 2016. Optimization 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 is an increasing focus on building Mode 2 infrastructure.

Among the various segments of the Indian IT infrastructure market, Enterprise Networking leads with expected revenue of $848 million for 2016. This segment is expected to remain strong until 2020. See the table below.

Table 1: Indian IT Infrastructure Revenue By Technology (Millions of U.S. Dollars)

Segment 2015 2016 2017 2018 2019 2020
Enterprise Networking 812 848 903 942 959 965
Storage 275 253 262 269 275 281
Servers 822 834 862 863 874 891
Total 1,909 1,935 2,028 2,073 2,109 2,138

Source: Gartner (April 2016)

Servers segment revenue is expected to lag the Enterprise Networking revenue by a small margin until 2020. It, however, beat the EN revenue in2015. The Storage segment revenue is likely to remain flat for the mentioned period.

With a revenue projection of $253 million in 2016, storage investment will witness a decline from last year primarily due to improved price performance,” said Mr. Mishra. “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.