Growing Infrastructure Needs Are Creating a Massive Opportunity for Co-Location Providers
Kolkata, India, June 9, 2015 (Newswire.com) - IaaS investments are set to grow at 28% CAGR over the next 4 years, says AMI
Over the next few years, investments in Infrastructure as a Service (IaaS) solutions will be fueled by the IT infrastructure expansion happening across India enterprises. This is especially noted within service sector businesses in verticals such as banking, insurance and telecom as well as within the government segment. Large to mid-market enterprises are typically turning to IaaS solutions to replace their existing outdated infrastructure. In addition a large portion of India small and medium businesses (SMBs, firms with 1-999 employees) are attracted by the promise of developing best of breed infrastructure at a low acquisition and maintenance cost. AMI-Partners’ upcoming study “India IaaS Market Opportunity - Special Focus on Data Center & Co-location Services” projects investments in IaaS solutions are expected to grow approximately 28% over the next 4 years. Spending on server and co-location solutions will be the biggest contributor to total IaaS investments; driving close to 60% of forecasted investments in IaaS.
"Keeping in mind the ever present need to operate within restricted budgets, a greater demand for infrastructure upgrades and the rise in application workloads, will increase interest in 3rd party data centers among SMBs as well as government owned enterprises."
Somnath Das, Research Manager at AMI-Partners
Some of the large businesses in India who do not have captive data centers have already adopted 3rd party data centers. In the near future, usage of data center and co-location solutions is expected to percolate down to medium and small businesses as well. “Keeping in mind the ever present need to operate within restricted budgets, a greater demand for infrastructure upgrades and the rise in application workloads, will increase interest in 3rd party data centers among SMBs as well as government owned enterprises,” says Somnath Das, Research Manager at AMI-Partners.
The unprecedented growth in data will force enterprises to focus on using less expensive, active, concerted, and adaptive methods to analyze, store and share data. The India government’s aggressive demand for digitization as well as the need for documentation of records and regulatory compliance measures will act as major drivers for the growing adoption of data centers. This growth will not be limited to the cloud space. Both hosted and captive data centers are expected to increase their foot hold; thus boosting the overall data center space. However, hosted data centers are likely to grow at a faster pace. “Co-location has always been popular among large enterprises as they have an access to greater monetary reserves and they prefer owning the hardware that is in use outright. Cost conscious SMBs, on the other hand, prefer to invest in hosted servers,” stated Das. “Vendors should target the huge untapped potential for hosted data centers within the SMBs space,” he continued.
Anticipating future growth potential, vendors and third-party infrastructure hosters have already started proactively investing in increasing the data center space under their control. Data center service providers, such as telcos and carrier neutral hosting providers are looking to cash in on the need for expanded infrastructure. One roadblock to expansion is that many small businesses are fearful of hosting critical and confidential customer information or financial data outside their office location. Greater awareness among these SMBs regarding the security measures taken by IaaS providers is key to bridge the gap between interest and adoption.
Related Study
AMI-Partners’ upcoming study, India IaaS Market Opportunity -Special Focus on Data Center & Co-location Services provides insights on data centers and server co-location as an important component within the IaaS market. It will help operators to effectively enhance and fine tune their go-to-market approach within India.
The study examines India firms’ business challenges, identifies key decision makers, the role played by influencers as well as key sources of information considered when purchasing cloud solutions. The study analyzes leading drivers and motivators for IaaS adoption and presents in detail the IaaS opportunity in terms of market size and growth. It further provides a clear sense of the overall market opportunity and the outlook for data center and server co-location solutions.
For more information about this study, AMI-Partners, or our global SMB research, call 212 944 5100, e-mail ask_ami@ami-partners.com or visit www.ami-partners.com.
About Access Markets International (AMI) Partners, Inc.
AMI-Partners specializes in IT, Internet, telecommunications and business services strategy, venture capital, and actionable market intelligence—with a strong focus on global small and medium business (SMB) enterprises and extending into large enterprises and home-based businesses. The AMI-Partners mission is to empower clients for success with the highest quality data, business strategy perspectives and ―go-to-market solutions. Led by Andy Bose, the firm has built a world-class management team with deep experience cutting across IT, telecommunications and business services sectors in established and emerging markets.
AMI-Partners has helped shape the go-to-market SMB strategies of more than 150 leading IT, Internet, telecommunications and business services companies over the last ten years. The firm is well known for its IT and Internet adoption-based segmentation of the SMB markets, its annual retainership services based on global SMB tracking surveys in more than 25 countries, and its proprietary database of SMBs and SMB channel partners in the Americas, Europe and Asia-Pacific. The firm invests significantly in collecting survey-based information from several thousand SMBs annually, and is considered the premier source for global SMB trends and analysis.
Media Contacts:
Quoted Analyst: Somnath Das. Phone: (91) 4003 3093 ext 209. Email: sdas@ami-partners.com
Media Relations: In US (New York): Nancy Carty. Phone: (212) 944 5100 ext 581 Email: ncarty@ami-partners.com
In Singapore: Abhilash Pillai. Phone: (65) 6521 3787 ext 115. Email: apillai@ami-partners.com
In India (Kolkata): Jyoti Singh. Phone: (91) 33 4003 3093 ext 223. Email: jsingh@ami-partners.com
In India (Mumbai): Neha Jalan Goenka. Phone: (91) 99300 20420. Email: njalan@ami-partners.com
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