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The Indian IT infrastructure market comprising of servers, storage and networking equipment will reach $2,05-billion in 2012, a 10,3% increase over 2011, according to Gartner. The IT infrastructure market is expected to reach $3,01-billion by 2016.

Gartner analysts are providing the latest outlook on the Indian data centre market during the inaugural Gartner Infrastructure, Operations & Data Centre Summit, which is taking place in India now.

“Technology’s role in the enterprise is increasing and IT’s closer alignment with business, and vice versa, is a topic of much focus within Indian enterprises today,” says Aman Munglani, research director at Gartner.” Soon there will be a time when there is no IT strategy, only a business strategy, as leading CIOs are seeing technology as a business enabler and a engine for innovation.”

Revenue growth will be primarily driven by ongoing data centre modernisation, as well as new data centre build outs. Servers are the largest segment of the Indian IT infrastructure market, with revenue forecast to reach $754,5-million in 2012, and grow to $967,2-million in 2016.

The external controller-based storage disk market in India is expected to grow from $439,4-million in end-user spending to $842-million in 2016. This is the fastest growing segment within the IT infrastructure market. The enterprise network equipment market in India, which includes enterprise LAN and WAN equipment, is expected to grow from $861-million in 2012 to $1,2-billion in 2016.

“The key growth driver for the data centre market is the ongoing investment in large captive data centres coupled with the capacity growth witnessed within the data centre service provider space. Indian organizations are heavily focusing on optimising their infrastructure capacity by implementing virtualization and incorporating newer ways of data centre design,” says Munglani. “Though India is in the early stages of cloud adoption, cloud service providers will also be a key contributor to the infrastructure consumption, especially for commodity type, scalable technologies, such as scale out systems and extreme low energy servers.”

“The nexus of IT forces, such as growing the mobility installed base, increasing social media penetration in the consumer and the enterprise space, coupled with gradual adoption of cloud, will drive fundamental shifts in the way data centre managers design, operate and manage their data centres and associated partners,“ says Naveen Mishra, principal research analyst Gartner.

“Indian IT organisations are making a big shift from a distributed IT setup to a more manageable and efficient centralised model, leading to consolidation of branch and remote IT resources into fewer, but larger data centres,“ says Naresh Singh, principal research analyst with Gartner. “ Data centre site consolidations and relocations are happening, especially for the in-house data centre owned by organisations.”