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Cloud, Ultra-mobiles to weigh on hardware demand

The public cloud market in India, which grew 33.6% in 2013 to $404 million, is expected to be the fastest growing segment in enterprise IT this year.

Updated: Jan 16, 2014, 11.25 AM IST
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The public cloud market in India, which grew 33.6% in 2013 to $404 million, is expected to be the fastest growing segment in enterprise IT this year.
The public cloud market in India, which grew 33.6% in 2013 to $404 million, is expected to be the fastest growing segment in enterprise IT this year.
BANGALORE: India Inc’s demand for IT hardware is expected to rise at a slower pace in the year ahead, as companies evaluate newer options, including renting off the cloud, and ultra-mobile devices that combine features of laptops and tablets.

While a more stable rupee is going to help, the upcoming general elections and the new government’s attitude towards foreign direct investment in retail, telecom regulations and new licences will all also affect corporate spending on IT.

"CIOs are likely to spend more on smaller form factors and smart devices, not necessarily traditional desktops," said Francis Rajan, head of information technology at the Bangalore International Airport.

Desktop sales in India are expected to rise the least to 6.99 million units in the year ending March 2014 from 6.77 million units the previous year, whereas tablet PC sales will likely more than double to 3.84 million, according to the manufacturers association of IT, India’s electronics hardware lobby.

Smartphone sales too are expected to rise smartly, at 41% to 21.47 million units. "The device market continues to evolve …mobile phones are a must have and will continue to grow but at a slower pace, with opportunities moving away from the top-end premium devices to mid and basic products," said Ranjit Atwal, research director at Gartner. Gartner estimates the IT infrastructure market in India at $2.3 billion in calendar year 2014, including servers and storage devices, compared with $2.1 billion in 2013.

The public cloud market in India, which grew 33.6% in 2013 to $404 million, is expected to be the fastest growing segment in enterprise IT this year. Global public cloud market was estimated to be at $131 billion in 2013, according to Gartner. Public cloud refers to multiple clients renting computing processor power, storage and even software applications from the same vendor, on a payas-you-go model.

This is attractive as companies can avoid much larger upfront investments in buying and maintaining computer hardware and software and simply rent what they want. Concerns about data and cyber security still, however, come in the way of companies shifting core IT systems to the public cloud.

IT spending in India is expected to reach $71.3 billion in 2014, a 5.9% increase over 2013, and worldwide IT spending is projected to total $3.8 trillion , a 3.1% increase.
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