India data center infra spend set to decline 14% in 2020: Gartner

Our Bureau Mumbai | Updated on October 07, 2020

Companies delaying capex plans due to cost containment

India data center infrastructure spend is expected to decline 14.4 per cent to $2.8 billion in 2020, with an estimated single-digit growth in 2021, according to the latest forecast from Gartner, Inc.

Many Indian enterprises have delayed their infrastructure capex intensive refresh/upgrades due to the ongoing cost containment. These end users are evaluating “as a service” infrastructure consumption models. Focus on automation, remote monitoring, coupled with network optimisation is part of the new normal for infrastructure leaders in India. Covid-19 has accelerated the transition towards Hybrid Cloud as more Indian enterprises are experiencing the benefit of public cloud during this pandemic.

Globally, end-user spending on data centre infrastructure is projected to reach $200 billion in 2021, an increase of 6 per cent from 2020.

“The priority for most companies in 2020 is keeping the lights on, so data center growth is generally being pushed back until the market enters the recovery period,” said Naveen Mishra, senior research director at Gartner. “Gartner expects larger enterprise data centers sites to hit pause temporarily and then resume expansion plans later this year or early next. However, hyperscalers will continue with their global expansion plans due to continued investments in public cloud.”

Published on October 07, 2020

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