Dell Technologies expects demand for infrastructure solutions to remain high

The global slowdown in the IT services industry wasn’t directly impacting the hardware business of Dell Technologies yet, as enterprises reallocated spend towards driving innovation and efficiency, said a senior executive.

Speaking to ET, Manish Gupta, Vice President and General Manager, Infrastructure Solutions Group, Dell Technologies India, said that demand for infrastructure solutions continued to remain high in India. The server market in India grew by over 36% last year and is expected to grow at a fairly high pace this year as well.

“We see demand in sectors like telecom, banking and financial services and the government, among others,” he said. The 5G rollout, increased use of analytics in banking and the move to providing omnichannel solutions are all driving this demand, along with the government rollout of digital citizen services.

While last year was the biggest growth year for the segment and is unlikely to be repeated this year, Gupta said that the India market continued to grow.

Customers who have already started on their digital transformation journeys are not cutting these spends, and this will continue to generate more workload. “A lot of these projects which are at a proof-of-concept stage will move to implementation this year,” said Gupta.

Further, the increasing adoption of large language models and more computing moving to the edge require newer infrastructure.

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Earlier this week, Dell Technologies launched a new range of servers that would make it easier for organisations to adopt the ‘as a service’ approach. “Indian businesses across industries are looking at managing and working with increasing quantities of data. The expanded portfolio will ensure accelerated performance and reliability for powerful computing across IT environments,” said Gupta. These will help provide optimized solutions tailored for cloud service providers managing large-scale, multi-vendor data centers.

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