The State of Enterprise IT in India

India's data-center market is among the fastest-growing in the world, expanding at roughly 43% year-on-year and heading toward a market size in the order of US$5–6 billion by 2027. This growth is driven not only by hyperscale cloud demand but by a long tail of mid-market enterprises that need reliable, compliant, locally-hosted infrastructure.

The CapEx-to-OpEx shift

Traditional infrastructure required large, lumpy capital outlays every three-to-five years, followed by a slow depreciation curve and an even slower refresh cycle. Managed services convert that into a predictable operating expense aligned to actual consumption, freeing capital for the core business and removing the risk of over- or under-provisioning.

Hybrid is the destination, not the cloud

After a decade of 'cloud-first' rhetoric, most Indian enterprises have settled on a hybrid reality: latency-sensitive, data-resident, and cost-stable workloads stay close to home in colocation or private cloud, while elastic and bursty workloads live in public cloud. The winning operating model is one that spans both without forcing a false choice.

Regulatory pressure is now a board-level issue

• CERT-In's directions mandate six-hour incident reporting and log retention.
• RBI and IRDAI impose strict data-localisation and resilience requirements on regulated entities.
• The Digital Personal Data Protection (DPDP) Act formalises data-residency and breach-notification duties.