Cloud IaaS spending will total USD 677 million in 2017: Gartner

According to research firm Gartner, integrated systems will shave off up to 25% of combined spend on servers and storage.

                                                                        

Cloud infrastructure as a service (IaaS) will exceed traditional datacenter outsourcing spend in India during 2017, according to Gartner. In India, traditional datacenter 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 datacenter outsourcing in terms of spending in India, predicts Gartner.

 

"As the demand for agility and flexibility grows, organizations will shift toward more industrialized, less-tailored options," said DD Mishra, research director at Gartner. "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 multisourced environment."

 

Gartner predicts that by 2020, 90% of organizations will adopt hybrid infrastructure management capabilities.

 

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

 

"This means that by 2021 traditional datacenter services will co-exist with a minority share alongside the industrialized and digitalized services," said Mishra.

 

Through 2020, integrated systems in India will shave off up to 25% of the combined spend on servers and storage.

 

Gartner says several end user organizations are showing a strong willingness to consider alternate delivery models for infrastructure requirements. Users are keen to understand newer technologies, such as integrated systems, hyperconverged infrastructures and cloud-based architectures.

 

Cost savings, optimized time to production and simplified operations are the top drivers for the adoption of integrated systems. Within this reduced design time, simplified procurement and improved time to delivery and simplified integration with existing technology are top considerations.

 

Over the years, there has been an increase in the adoption of cloud, mobility and analytics, that has led to many organizations to rethink their datacenter strategies. Organizations in India are increasingly challenging the need to buy and maintain discrete datacenter components, and are also evaluating architectures that would provide the agility, flexibility and the scale desired for new application workloads. At the same time, users now have a greater choice and availability of newer technologies, such as hyperconverged infrastructures.

 

The report also indicates that an average of 20% of organizations augmenting storage capacities in India are actively considering integrated systems.