Internet Penetration and Tech Savvy SMB paving the way for Growth of Hosting Infrastructure Services Industry in India

November 2014  

 The internet’s juggernaut has just started and is showing no signs of slowing down in the near future. The internet population in India will cross 250 million by the end of this year and is already the world’s 3rd largest internet user behind China and USA. The availability of cheap smart phones and laptops have made internet accessible to a whole new demographic. The advent of tablets and smart watches are also broadening the spectrum of internet usage. 

 
The foreign players’ entry in the Indian hosting infrastructure industry will although hurt the competitiveness of Indian players in the market, but on a macro level, the same will help the hosting infrastructure industry in India to grow. The domestic players will learn to co-exist and the competition will eventually turn healthy. A CAGR of more than 30% will be maintained in the next 5 years in the number of domains hosted. Hence, on the basis of domains hosted, the hosting industry in India has huge potential with immense growth opportunities which will be utilized by the industry in coming 4 years to take it to a whole new level. 
 
A major factor which will be responsible for the unprecedented growth of the hosting industry is cloud computing. This global phenomenon will fuel the hosting industry’s future growth opportunities. Cloud hosting will be a huge catalyst for the industry and early cloud adopters or “leapers” as they are called, will benefit the most. Some major players have already started providing cloud hosting services. The cost effectiveness, technological advancement and the energy efficiency makes cloud hosting the next stop for the hosting industry. The increased government spending on the IT sector will continue to increase steadily which will in turn prove beneficial for the entire IT industry. This spending will also boost the chances of growth in hosting industry as a positive mood in the industry will lure investors. 
 
The hosting industry’s revenue will continue to grow at a CAGR of c. 20% during FY’2014-FY’2019. Given the internet penetration and the government spending, the sector will witness growth throughout the period. The SMBs are becoming more IT aware and this caused a spurt in their IT spending. This trend will continue in the coming years as SMBs are growing at an unstoppable pace. And with the growth in SMBs, the number of websites is also growing thus, helping the hosting industry in India to achieve new heights. 
 
The report titled “India Hosting Infrastructure Services Industry” provides detailed overview on the Hosting Infrastructure Services Market and helps readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, potential entrants, vendors and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.