A leading technology magazine, Communications Today, recently revealed that data centers in India are growing at a compounded annual growth rate of approximately 19.9% per annum with BFSI (Banking and Financial Institutions) and manufacturing sectors indicating the highest deployment. The magazine further projected that the country’s government organizations are projected to avail data center services from reliable and established vendors owing to the high degrees of security, tighter management, and internal controls followed by the third parties.

Consequently, with the rapid advancements in the information technology, companies engaged in technology industry have established their global presence. These enterprises are known for providing best-in-class services by using cutting-edge technology, overshadowing other nations while immensely contributing to the country’s overall growth.

Let’s dig deeper to understand various factors that are contributing to the growth of captive data center facilities in the country

One of the underlying factors that have resulted in fundamental transformation in the country’s data center architecture is essentially driven by the virtualization and cloud computing. The technology is creating significant opportunities for enterprises offering Ethernet equipment to data center facilities. Nevertheless, this competitive realm along with heavily segmented market divisions is creating a difficult environment for service providers to sustain their presence.

Most of the equipment providers are coping up with these challenges, which are further multiplied by factors like technical complexities, various migration options available, a wide number of standards defined by numerous bodies. There are also different baselines like changes in technology, which are further setting hurdles to the current ecosystem.

Despite the above factors, surging energy costs, dwindling organizational budgets, adoption of diverse servers in data centers, and increasing preference for process outsourcing are further paving way for vendors to expand their presence across the country. Some of the data center services like VPS hosting, dedicated server hosting and cloud hosting are burgeoning at a rapid pace.

According to industry experts, the adoption of new management and engagement models, including pay-per-use utility model and colocation services are acting as a catalyst for driving the growth of data center facilities in India. By availing these solutions, companies have previously known to benefit from cost savings while achieving high returns on investment from cloud computing and virtualization.

To conclude, the rising growth of data center facilities in India is driven by factors like high bandwidth speed, power and energy savings, state-of-art infrastructure, and cutting edge technology used by the service providers. These factors are maximizing a company’s business value while reducing their variable costs.