By 2020, integrated systems will shave off up to 25 percent of combined spend on servers and storage cloud infrastructure-as-a-service (IaaS) will exceed traditional data center outsourcing spend in India during 2017, estimates Gartner. In India, traditional data center outsourcing is forecast to reach USD 559 million in 2017, while cloud IaaS spending will total USD 677 million this year.

By 2021, cloud compute and storage as-a-service will be nearly three times that of traditional data center outsourcing in terms of spending in India. As the demand for agility and flexibility grows, organizations will shift toward more industrialized, less-tailored options. Organizations that adopt hybrid infrastructure will optimize costs and increase efficiency. However, it increases the complexity of selecting the right toolset to deliver end-to-end services in a multi-sourced environment.

By 2020, 90 percent of organizations will adopt hybrid infrastructure management capabilities.

In 2016, traditional worldwide data center outsourcing and infrastructure utility services together represented 36.5 percent of the USD 1.65 billion total data center services market in India, consisting of DCO/IUS, hosting, and cloud infrastructure as-a-service. This is expected to tilt further toward cloud IaaS and hosting, and by 2021, DCO/IUS will be approximately 22 percent of the expected USD 3.8 billion DCS market in India.

By 2021, the cloud IaaS market in India will exceed USD 2.1 billion in end-user spending, which will be nearly three times that of traditional DCO in India. End-user spending of traditional DCO in India will reach USD 693 million in 2021, and it will represent more than half the overall DCS spending of approximately USD 3.8 billion.

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