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As real estate prices go through the roof, enterprises are
realizing the importance of optimizing the availability of space and are looking
for IT hardware which can take up less space, and with efficient mounting. This
is where racks and enclosures come into the picture. Almost the entire set of IT
and telecom hardware including PCs, servers, switches, routers and UPSes can be
put in a systematic fashion in an enclosure providing a neat data center. Most
of the solutions are server-vendor neutral. Considering the importance of growth
of this segment, Dataquest is introducing Enclosures as a separate segment in
this years Top 20. The sector, which was once the preserve of the unorganized
sector, has now come to be valued by most leading players.
Rack Mounted
There are several reasons why enclosures have gained the kind of importance
they attracting. Among the factors being actively considered by large
enterprises aresystematic power and cable management, the need for cooling,
the need for security, and scope for adding additional hardware without any
major disruption in the work. Over and above, as businesses grow, so does the
need.
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The enclosures and racks
market stood at Rs 400 crore
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Power amanagement measures
like APC and Emerson are getting into the market
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With power supply and backup
so closely linked to racks and enclosures, its no surprise that UPS
vendors are the most active in the area
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Rittal, APC, Emerson Power (India), APW President, and Valrack
dominating the market. More and more IT hardware is getting stacked up one over
the other not only to improve business efficiency but also to attain maximum
space utilization given the fact that real estate costs have really shot up.
The Heat is On
Data center management acquired importance in order to ensure extended
availability and reliability of business critical applications. There was a
shift in the market with enterprises demanding more integrated solutions than
individual products. Complex applications, faster processors, and high density
servers becoming a norm in data centers, heat increasedputting pressure on
racks to cool hot spots in order to ensure that the business process continuity.
In order to increase business efficiency, enterprises insisted
more on server consistency and inclusion of dual servers to add another
redundancy level while giving flexibility to fit in additional UPSes. There will
be no single point of failure, thereby controlling data loss due to sudden power
breakdown. But the dual servers meant more heat, in turn increasing pressure on
cooling systems.
Thus, the thrust was more on rack solutions that would provide
comprehensive cooling as well as power management solutions while ensuring
availability and scalability. Apart from providing intact physical structure,
racks became a critical product in integrating cooling, power, round the clock
information, and also post purchase maintenance. The demand for integrated
architecture also witnessed vendors introducing products to suit market needs.
Data centers saw a rise over the years, good news for the enclosure industry.
The effort always has been for more RoI out of the investments. Organizations
devised cost effective methods to boost productivity.
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The
Enclosure Landscape* |
|
Company |
Revenue
(Rs crore)* |
Market Share |
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Rittal |
80 |
20% |
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APW President |
80 |
20% |
|
Emerson |
40 |
10% |
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APC |
40 |
10% |
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Valrack |
10 |
2.5% |
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Others |
150 |
37.5% |
|
Total |
400 |
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| Excludes
internal and industrial enclosures |
| Source:
DQ Estimates CyberMedia Research |
The key verticals that drove growth were, BPO, IT/ITS, BFSI,
telecom, government and education. With banks adopting core-banking solutions,
the dependence on a central database increased. The demand from telecom industry
was a result of an increase in the number of subscribers, who needed to
continuously upgrade their IT infrastructure. Most of the state governments
adopted e-Governance making upgradation imperative, while e-learning in India
gained momentum with introduction of specialized courses, online teaching and
easy access to global services.
Meanwhile, IT companies went on an expansion mode and opened up
branches in major places. This resulted in increased dependency of these
branches on the central database system pushing the need for companies to
upgrade their infrastructure. The demand from BPO was the result of services
this segment was extending in the fields of BFSI, telecom, manufacturing,
healthcare, government and education. Enterprises thus went for infrastructure
that ensured security of their data and applications.
APCs strengths lay in deployments in government and BFSI,
while Emersons strength was in IT and Telecom segments. Rittal also made
major deployments in the Telecom sector. Networking and telecommunications
dominated APW Presidents business.
According to Dataquests Megaspenders Survey 2007,
average IT expenditure across those 200-plus large organization recorded a 27%
growth, touching Rs 34.08 crore in FY 07 compared to Rs 26.86 crore the
previous year. This will have huge implications for the enclosure segment in the
years to come. Page(s) 1 2
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