Indian IT infrastructure spending to rise 3.3% to $2.02 billion in 2015

MUMBAI: Indian IT infrastructure spending is expected to rise 3.3% to $2.02 billion in 2015, research firm Gartner predicted, as companies invest in building and modernizing their data centres.

Though overall spending on IT infrastructure is expected to grow, spending on servers is expected to contract for the third-straight year. Server revenue is expected to reach $658 million in 2015, a decline of 4.7 percent from 2014. The server market is expected to return to positive growth in 2016 when revenue is forecast to total $698 million.

Spending on storage is expected to grow 7% to $426 million this year. Storage modernization and consolidation, backup and recovery, and disaster recovery are some of the factors driving the growth.

“Indian IT infrastructure is poised to be a $2.29 billion market by 2018. The Indian infrastructure market will witness investments primarily fuelled by data center modernization initiatives to drive uninterrupted and better quality of service,” Naveen Mishra, research director at Gartner, said in a statement.

The forecast, issued on Monday in Mumbai, is a marginal cut from Gartner’s previous estimate released in September. Gartner had previously said IT infrastructure spending would rise to $2.03 billion and expected the server market to return to growth this year.