The overall size of the data center services market in India is approx between USD 950 Million to USD 1 Billion in 2015 and with powerful resurgence of growth-related projects across verticals such as banking, insurance, telecom and the government, Indian Data Center infrastructure market, comprising of server, storage and networking equipment, shall see a 5.4% increase y-o-y.
Definition / Scope
There are many possible definitions for a “Data Center”. Some of them are:
- Data center services encompass all of the technology and facility-related components or activities that support the projects and operation of a data center, which is an environment that provides processing, storage, networking, management and the distribution of data within an enterprise.”
- Data center services is a collective term for the supporting components necessary for the proper operation of a repository for storage, management and dissemination of data organized around a body of knowledge or pertaining to an enterprise. As such, data center services can involve hardware, software, processes and personnel.”
- Data center services is a collective term for the supporting components necessary for the proper operation of a repository for storage, management and dissemination of data organized around a body of knowledge or pertaining to an enterprise.”
If you noticed, all the given definitions are basically focusing on following things:
- Processing of data,
- Storage of data,
- Management of data,
- Dissemination of data, and
- Using the latest technology (hardware and software) to create efficient data centers.
A “Data Center” consists of the following:
- Managed power distribution,
- Backup power systems (Inverters or Generators),
- Data Backup, and/or archiving,
- Managed load balancing (just in case storage reaches its threshold),
- Controlled internet access (too much access to internet can lead to malfunctioning due to virus intrusion),
- Managed e-mail and messaging,
- Managed user authentication and authorization (most important part of all),
- Diverse firewalls and their anti-malware programs (no doubt data centers need this),
- Managed outsourcing,
- Managed business continuance (of-course, that’s why companies have data centers), and
- Continuous and efficient technical support.
Human labor which is required to build up “Data Center”
- The Facilities Manager- This individual is equipped with knowledge in all mechanical devices within the Data Center infrastructure, from air handlers and power distribution units to fire sprinklers and standby generators.
- The IT Manager- This person is responsible for the servers installed in the Data Center.
- The Network Engineer- This person designs, supports and manages the Data Center’s network.
- The Data Center Manager- This individual designs, supports and manages the Data Center’s physical architecture (infrastructure) and oversees the layout and installation of further incoming servers with the existing ones.
- The Real Estate Manager- This person is responsible for the optimal use of space provided for the Data Center.
- The Project Manager- This person is the heart of this project. Everything is managed by him. He’s the manager of the managers. He is responsible for the Data Center project as a whole, including its budget, timelines and supervision of outside contractors.
- The Architectural Firm- He’s the one person without whose N.O.C. (No Objection Certificate) for a plan whose design needs compile with the building codes, the plan can come at a still.
- The General Contractor- This person is the one you need to contact if you want to contact other contractors.
- The Electrical Contractor- This person is the “electrician” of the Data Center. He’s responsible for installation, labelling and testing of all the Center’s electrical and standby equipment.
- The Mechanical Contractor- This person is Data Center’s “A.C. Man”. He’s responsible for installation and testing of all Center’s cooling equipment. Ducting is typically the contractor’s responsibility as well.
- The Cabling Contractor- This individual installs and tests all of the Data Center’s structured cabling. Its staff also installs any racks or cabinets that cabling terminates into, and labels the room’s cable runs.
Top Market Opportunities
Future of Data Centers is “Green”
A green Data Center can be achieved by the following steps
- The organization should have alternative sources of power like “wind”, “solar energy”, etc.
- Efficient floor layout
- Recycling of waste material
- Using green rated power equipment
- Using weather changes for increased power efficiency
The Indian Data Center market is poised for a healthy growth due to demand coming from sectors such as BFSI, Telecom, IT and Social Media.
The rise of several heavy-memory-requiring-applications and the exceptional demand for storage space, are some of the few factors that are leading to the exponential growth of the Data Center segment.
In today’s world, the urge to increase the storage capacity has become a kind of ‘men at work’ for every large enterprise, there is a continuous rise in the numbers of customers needy of data and applications, there is optimism around cloud and there is the blast of big data. It goes without saying that in India, the Data Center market has every reason to be upbeat about the prospects for the 21st century’s industry.
In line with the global trends, the Indian Data Center market is in the positive sentiments in the economy and the powerful resurgence of growth-related projects across verticals such as banking, insurance, telecom and the government. According to research firm “Gartner”, Indian Data Center infrastructure market, comprising of server, storage and networking equipment, we shall see a 5.4% increase to $2.03 billion in 2015.
- The growth opportunities for Indian Data Centers are well known and well documented. However on the other side of the coin, there exist certain threats that might derail the growth progress.
- The data center market in India, is due to grow rapidly in the next 5 years. However, power security remains a significant risk stemming from the lack of diversity of energy imports and increasing reliance on thermal and oil import.
- Power availability and reliability is one major factor which if left unattended, will lead to disastrous result for Data Centers and its growth. The off shoots of power availability are:
- Increased cost of operation
- Difficulties in expansion of operations
- Increased capital cost
Energy, Security and Sovereignty
- “A primary concern for most data center operators in the country is to ensure business continuity with a focus on issues such as reducing energy consumption, manageability, scalability, efficiency and security in the datacenter,” says Shrirang Deshpande of Emerson Network Power, India.
Impact of “Make in India”
- Shibu Paul of “Array Networks” points out the any country that has moved out of their regular growth trend has invested and executed an effective manufacturing policy.
Cloud, Convergence, Virtualization propelling demand
- “The Indian data center market is poised for healthy growth due to demand coming from sectors such as BFSI, Telecom, IT and Social Media. Apart from these sectorial influences, various eGovernance initiatives of center and state governments are also fuelling the demand,” says Vinod Ganesan, Director – Platform Solutions & Services Hitachi Data Systems, India
Optimizing Data Center
- “As far as cloud is concerned, many of the service providers have started rolling it out. Some of them are offering cloud services to the general public, to gain more mind share with the end-consumers. Many enterprises have implemented the cloud architecture, though they have kept it as private. Making it public will take some more time as many enterprises are concerned about issues of accessibility, availability and security,” says Alamuri Sitaramaiah – MD India & SAARC CommScope
- Conducive regulatory framework and availability of optimal infrastructure are basic to doing business for domestic as well as multi-national companies.
Future look uprising
- According to Gartner, the data center and co-location business in India is expected to touch $ 1.3 billion which is being fuelled by increased outsourcing of data center requirements by banks and Government
- “With increasing numbers of users coming online and the government’s ‘Make in India’ initiative, we believe that offering data center operators the agility to respond to change with innovative solutions and cost, as well as energy efficient DC infrastructure will drive the growth engine for most players in this segment in 2015,” concludes Shrirang Deshpande of Emerson Network Power, India.
Market Size and Forecast
The third party data center market in 2009 is pegged at US$ 266 million, which is expected to reach US$ 481 million by the year 2011, growing at a CAGR of 34.5%. Whereas the captive data center market in India is estimated to be around US$ 1169 million and is expected to touch US$ 1681 million by 2011, growing at a CAGR of 19.9%.
Data Center Market in India
The overall size of the data center services market in India is approx between USD 950 Million to USD 1 Billion in 2015
- IDC-Analyzing Future, Project Report on “Data Centers”
- CtrlS-Emerging Data Center Trends