Here are few thoughts on Pan Indian Data Center market growth

1. Umesh Jamwal
Independent Consultant
August 24,2015
ujamwal3@gmail.com

2.  Summary
 Data center growth segment
 Data center and emerging markets growth
 India data center market revenues-TAM
 Competitive landscape
 Compelling event and top initiatives for 2016-17
 Action Plan - 2016-17
 Data Centre Growth Plan 2015-17

3.  Key Market Drivers in the Region
- Cloud Services(CaaS, IaaS, SaaS, PaaS)~$5B by FY 2017
- Social Media and Digital Entertainment Networks
- Healthcare
- BFSI
- Retail,E-Commerce
- Govt., E-Governance, Digital India
- Smart Cities
- BYOD, Enterprise Mobility, security
- SMB
- Communication Service Providers , ISPs, MSOs etc.
- Managed Services~$5B by FY 2017
- Co-location/hosted services~$2B by FY 2017
- Utilities

4. 20%
15%
20%
20%
15%
10%
Banking and Financial
Services
Manufacturing
Communication Service
Providers
Retail/E-Commerce
Social
media/Entertainment
Government/E-
Governance

5. 0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
5.80%
18.90%
9.60%
7.60%
37.80%
60%
FY 2015

6. Table 1: Indian IT Infrastructure Revenue By Technology (US $M)
Source: Gartner, (September 2014)
$0
$200
$400
$600
$800
$1,000
$1,200
Servers Storage Enterprise
Networking
$677
$409
$948$724
$436
$970
$761
$460
$1,007
2015
2016
2017

7. Disruptive factors :
 Network purchase trends will force dramatic changes in the region for
the survival of DC players:
◦ Big Cloud Provider Dominance (CaaS, IaaS,SaaS,PaaS)
(example – Amazon, VMware, Google, Azure, Baidu, NTT, Softbank have all set up
their own DC in India)
◦ Dell-Low-latency, high density, multi-rate GbE switches from Dell/Force 10
◦ Arista-Low footprint, high density gigE, 10G switches with ultra low-latency,
complete separation of networking state ,route and packet processing,
extensible and customizable
◦ Data Center consolidation and virtualization
◦ Enterprise Mobility
◦ New Applications- SAP/4 HANA, Big Data Analytics, Apache Hadoop/Cloudera
◦ Emerging technologies-SMAC
◦ Network Security, SDN/NFV Opendaylight, ONF standards
 (example – DDoS amp attacks, bots vulnerability , signaling storm ,cache poisoning
, including VLT, OpenFlow , Open Automation, Cloud Stack integration with
OpenStack, Microsoft, VMware, Docker and others, offer half the power
consumption and costs up to 50 percent less than the current generation of 1GbE
switches. Hardware/software (container/appliance)solution for shorter sales cycle
and more competitive pricing

8.  BFSI-Financial Inclusion
- 40% Bank accounts vs 70% Mobile connections
- Mobile banking for 1Billion mobile subscribers in India
 Enterprise prefer 3rd party Data-centers
- In-house solution is not viable due to real estate cost in tier-1 cities
- Non-availability of bandwidth in tier-2 cities
- Power back-up 24x7 , SLA Five Nines is N/A in tier-2 cities
- Carbon emission and Greenfield environ friendly operations
 Network Automation
 BYOD Applications, collaboration tools for workplace productivity , enterprise mobility-
Smartphone, Tablets etc.
 Global availability, remote management , low latency , high density, flexible
1,10,25,40,50 and 100 GbE switches, NXT GEN multi-rate, Open Enabled architectures-
ONIE
 Cloud Services-Multi-tenancy subscription model
 Regulatory Compliance, network security, bots ,malware vulnerability and protection
 New Markets and business models

9. •X86 Servers, Storage, Network Automation
Engines , Ethernet switches/networking
eqpt.
•Up-Sell, Cross-sell into existing accounts,
Support renewals
•On-prem, real-time , networked
cloud(pvt.+public) and hybrid data center
solution
Applications
Centric Infra
•Enterprise
•Government
•BFSI
•CSPs, MSOs
•Utilities (Oil & gas, power)
•Transportation
•Smart Cities
•Make in India
Market
Segment
Q1
to
Q4

10. 0
10
20
30
40
50
60
70
80
90
x86 server Storage Enterprise
networking
Cloud
services DC
others
35
25
65
10 10
40
45
75
20
17
45
65
85
30
25
CY2015
CY2016
CY2017