Domestic data services mkt to touch $1.52 bn in 2009

The India data centre services market is poised to witness rapid growth in the coming years and is expected to grow at a CAGR of 18 per cent to touch $1.52 billion by end 2009.

The third party data centre services market is slated to grow at 27 per cent CAGR (2007-2012) to become a nearly $50 million industry by 2012, says research firm IDC.

“With the Indian economy expected to grow at a slower rate consolidation, optimisation and productivity will be the key areas of focus for enterprise managements in the near future,” said Praveen Sengar, Senior Manager, Software & Services and Industry Verticals Research, IDC India.

Of the total India data centre services market in 2007, third party data centres constituted nearly 20 per cent in terms of built-up space and this ratio was expected to increase to 27 per cent by end 2009.

“Captive data centres will undergo optimisation and aim to leverage the existing assets, while third party data centres will experience a short-term supply glut. Moving from a pure co-location business model to an IT Services business model will be critical for third party data centre service providers as the market slows down,” said Sengar.

On the other hand for captive data centres retaining skilled personnel, optimisation, consolidation and management will be the key challenges.