Data centre infrastructure spends to grow marginally at 2.6% this year

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Data centre infrastructure spending in the country will grow by a marginal 2.6 per cent to US$ 2.7 billion in 2018, a Gartner report stated. The growth in data centre infrastructure hardware spending will be led by a 10 per cent increase in enterprise network equipment to US$ 1.442 billion, the report said.

The spend on servers will decline by one per cent to US$ 954 million, while the external controller based storage spends will plunge 12.5 per cent to US$ 335 million, it said, attributing it to public cloud migration.

“Technologies such as software-defined data centres are helping businesses optimise their existing resources, and as a result reducing overall spend on compute and storage resources,” said Santhosh Rao, Research Director, Gartner.

On the overall growth in the broader data centre infrastructure segment, he said that digital business initiatives are forcing infrastructure players to adopt a hybrid IT infrastructure model that can deliver reliable, innovative and cost-effective solutions to the business in a timely manner.

End-user spending on networking equipment is expected to grow in 2018 as organisations modernise their local area network (LAN) and wide area network (WAN) infrastructure to support digital business needs, the report said.

Stating that there will be increased adoption of cloud, the report estimated spending on infrastructure as a service is set to increase 45 per cent to US$ 1 billion in 2018, while cloud office suites like Google G suite and Microsoft Office 365 will witness a 37 per cent increase in spends to US$ 275 million.