Mumbai, May 2 (IANS): Cloud infrastructure as a service will exceed traditional data centre outsourcing spend in India to reach $677 million this year, a new report said on Tuesday.

According to market research firm Gartner, traditional data centre outsourcing is forecast to reach $559 million in 2017 in India. 

"Organisations that adopt hybrid infrastructure will optimise costs and increase efficiency. However, it increases the complexity of selecting the right toolset to deliver end-to-end services in a multisourced environment," said DD Mishra, Research Director at Gartner, in a statement. 

By 2020, 90 per cent of organisations will adopt hybrid infrastructure management capabilities.

In 2016, traditional worldwide data centre outsourcing (DCO) and infrastructure utility services (IUS) together represented 36.5 per cent of the $1.65 billion total data centre services (DCS) market in India, consisting of DCO/IUS, hosting and Cloud infrastructure as a service (IaaS). 

This is expected to tilt further toward Cloud IaaS and hosting, and by 2021, DCO/IUS will be approximately 22 per cent of the expected $3.8 billion DCS market in India, the findings showed.

By 2021, the Cloud IaaS market in India will exceed $2.1 billion in end user spending, which will be nearly three times that of traditional DCO. 

End user spending of traditional DCO in India will reach $693 million in 2021, and it will represent more than half the overall DCS spending of approximately $3.8 billion.

"This means that by 2021 traditional data centre services will coexist with a minority share alongside the industrialised and digitalised services," added Mishra.

Through 2020, integrated systems in India will shave off up to 25 per cent of the combined spend on servers and storage.