Challenges Abound, But Cloud Is Just Unstoppable

by CXOtoday News Desk    Mar 30, 2015


Cloud services are likely to face stiff challenges pertaining to data security, vendor lock-in period and less availability of quality IT hardware infrastructure in India. According to a recent report by Research & Markets, the greater challenges would come from the semi-urban regions across the country. Despite the setback, cloud growth and spending will continue at a faster pace than ever.

Increased government spending on National Optical Fibre Network (NOFN) and various e-governance portals, coupled with growing acceptance of cloud services in SME segment is expected to drive the market for cloud computing, says the research firm, which pegs the market for cloud computing services in India is projected to grow at a CAGR of over 22 percent during 2015-2020

A recently released TechSci Research report also reveals similar growth forecast, stating that the growing adoption of cloud technologies in SMEs and government agencies in India will drive the demand for cloud services in India.

Rising availability of cloud services at economical price models and the ease of implementation are the major growth drivers for cloud services in India. In addition, increased government spending on new e-governance projects based on cloud technology is likely to drive the market for cloud computing services in India over the coming years. Software-as-a-Service (SaaS) emerged as the leading market segment holding majority market share in 2014 in India, said the report.

“Wide range of cloud solutions bundled with innovative pricing models covering private, public as well as hybrid cloud are contributing to the adoption of cloud services in India. Growing spending on cloud services within government and IT/ITeS segment is also expected to drive the market over the coming years”, said Karan Chechi, Research Director, TechSci Research.

Chechi stated that application hosting and e-mail remained the leading services to utilize cloud technology extensively in India. Growing at over a CAGR of 50 percent, private cloud dominated cloud computing ecosystem in India during 2010-2014. Improved data security features and exclusive control remain the key factors contributing to growth of private cloud in India.

However, private cloud adoption is largely restricted to large enterprises in present times. This is due to the fact that higher initial investment discourages small and medium enterprises to opt for private cloud deployment.

Moreover, public cloud adoption is plagued by data security and reliability issues due to which hybrid cloud has been gaining traction in India. The report also throws light on key roadblocks that restrict the growth of overall cloud services in India such as growing concerns over data security, reliability and surveillance. In addition, dearth of quality IT infrastructure further hampers widespread adoption of cloud services in India, the reports stated.