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India IT infrastructure spending to reach $2.2 billion in 2017: Gartner

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India IT infrastructure spending prediction in 2017 by Gartner

The expenditure on IT infrastructure in India will reach $2.2 billion in 2017, according to research firm Gartner. Segments like enterprise networking and storage are reported to mark growth while the spending on server equipments is expected to decline.

Gartner predicts that the overall IT infrastructure spending in the country will score a 1.5 percent increase from 2016. The prime factor behind the growth is touted to be the digital transformation that was kickstarted right from the government level — with the launch of public initiatives like ‘Digital India’ and ‘Make in India’.

“Digital transformation is bringing in new sets of challenges and opportunities for Indian infrastructure leaders,” said Naveen Mishra, research director at Gartner, in a statement. “They have the unique opportunity of being at the helm of this shift within their organisation, provided they align with the imperative of the digital world.”

Enterprise networking as ‘biggest segment’

Swift increase in the demand for cloud computing has made enterprise networking as the “biggest segment” within the entire Indian IT infrastructure market. The firm predicts that revenue from the enterprise networking segment will reach $1.1 billion in 2017.

After the enterprise networking, it comes the storage segment that is expected to reach $352 million. Garnter believes that the small increase from the revenue of $346 million in 2016 will primarily driven by technology alternatives such as software-defined storage (SDS) and flash-based storage.

“Storage investment will witness a small increase primarily driven by technology alternatives such as SDS and flash-based storage coupled with continued focus on SAN-based storage,” said Mishra.

Decline in server spending

In the entire Indian IT infrastructure market, server spending is predicted to receive a downfall. Gartner expects that the spending on server equipments will decline from $765 million in 2016 to $727 million in 2017.

Despite the decline in 2017, server spending is likely to receive a marginal boost in 2018 and reach to $768. New developments like the advanced Linux distributions are expected to play the vital role over time.