3rd party datacentres to grow faster than captives – Cyber Media Research | Real Time News, India

Third-party datacenters will overtake captive datacentres in growth over the next three years, according to CyberMedia Research. In a new report, the agency also puts the size of the India Data Center Services at Rs 11,800 crore.

Data centres are buldings that host thousands of computers that are used to process large amount of data and connected to a network, such as the Internet. They are set up either by companies themselves or leased from special, third-party service providers.

Total datacenter market will grow at a compounded rate of 23% per year for the next three years, while captive centres will grow faster at 34%, touching Rs 2,800 crore by 2012.

“As more and more enterprises look to outsource the management of their IT infrastructure, third-party data centers will find increased adoption over the next 2-3 years”, said Apalak Ghosh, of CyberMedia Research.

The cost of hosting is expected to drop significantly over this period due to rapidly decreasing bandwidth cost, and a greater choice of options becoming available to enterprise customers.. Over the next couple of years, the India Data Center services market would shift from being a margin-based business to a volumes-based industry, CyberMedia Research added.

“Data Centers fuel adoption of innovative delivery models like Cloud Computing amongst mid-size enterprises, and increase propensity to experiment with new technologies like Virtualization and Green IT amongst large enterprises. The India market is currently witnessing experimentation and adoption of new technologies in order to help enterprises optimize utilisation of resources and maximize benefits,” it added.

The growth will fuel and be fueled by cloud services as well as government and financial sector investments, it said.