 "DC Storage Mkt To Reach Rs. 5,154 Crore In 2017")
The increasing data needs of Indian enterprises are creating a fertile market for cloud computing, green datacentres, virtualisation, and flat datacentres. The emergence of cloud computing, adherence to datacentre standards, and growing acceptance of carrier-neutral datacentre outsourcers, in turn, will cause value-chain participants to rethink the segment they choose to operate in.
New analysis from Frost & Sullivan, Opportunities across Value Chain in Data Center Market India, FY 2011 finds that the datacentre storage market earned revenues of Rs. 1,963 crore in 2011 and estimates this to reach Rs. 5,154 crore in 2017.
Customers are increasingly looking at a one-stop shop for their datacentre needs, ranging from hardware procurement to deployment, operations, and maintenance. Vendor consolidation will help blend the traditional roles played by server/storage-only vendor and network connectivity providers.
“Already, the telecom segment provides network connectivity, datacentre build consultancy, and managed services for both captive and hosted datacentres,” said the Frost & Sullivan Information and Communication Technologies Analyst. “Storage and server original equipment manufacturers are also looking at extending their offerings by providing networking gear and off-premise cloud services.”
While expansion into newer business and revenue segments is desirable, companies need to exercise caution in the current economic environment. They have to demonstrate long-term vision while investing heavily in future markets.
With competition escalating, it will be interesting to note how companies strategically reposition themselves as one-stop shop providers as early as possible. For the competitive datacentre market, building a robust cloud services offering as part of the product portfolio is one of the best ways to gain an edge.
“Designing a cloud software-as-a-service (SaaS) product, which can be cross-sold to small and medium segment customers, is critical for a telecom company’s strategic growth plan,” noted the analyst. “However, software service designing and execution is not an area of core competency for a telecom company.”
Companies can hope to make the transition from traditional trade to new competencies by signing key partnerships and alliances. For instance, a telecom company can enter into a partnership with an independent software vendor to build a mass SaaS solution for the volume-driven small and medium business segment.
These efforts, along with Indian customers’ willingness to adopt datacentre management services for technological and service efficiency, will go a long way in improving participants’ market prospects.