India To Spend $3.9 Billion On Cloud Services By 2017

by CXOtoday News Desk    Dec 12, 2013

public cloud

Public Cloud is reaching a greater level of maturity in India. According to a new Gartner report, around $3.9 billion will be spent on cloud services in India from 2013 through 2017, of which $1.7 billion will be spent on software-as-a-service (SaaS). The overall public cloud services market in India is also set to grow 33.6% this year to touch $404 million, an increase of $101 million from the 2012 revenue of $303 million, said the research firm.

Apart from SaaS that represents the most mature segment in the cloud services marketplace, infrastructure-as-a-service (IaaS), including cloud compute, storage and print services, is also expected to grow 33.9% in 2013 to $59.2 million, said Gartner.

[Read: IaaS to boost cloud services market in India]

“The public cloud services market continues robust growth in India through over the forecast period of 2011 through 2017. While SaaS dominates as the largest cloud segment, the high growth rates of IaaS and platform-as-a-service (PaaS) make them important markets to watch,” said Ed Anderson, Research Director at Gartner.

According to Gartner, cloud services in India will be strong across all cloud segments through 2017. While business-process-as-a-service (BPaaS) is expected to grow from $63.6 million in 2013 to $168 million in 2017, SaaS is expected to grow from $174 million in 2013 to $552 million in 2017. IaaS is forecast to grow from $59.2 million in 2013 to $156.3 million in 2017.

Despite cloud services have gaining momentum in India, data security and lack of control are some of the issues Indian firms are facing with Public Cloud adoption. “Increased bandwidth and network costs are currently the key factors for the slow growth of cloud computing in the country,” notes an IDC report that expects public clouds to mature and eventually integrate many of the features - primarily security and availability – those that made private cloud an attractive option.

At the same time, there are a number of positive developments taking place in the country to fuel cloud adoption. The establishment of a Cloud Computing Innovation Council in India by the IEEE Standards Association earlier this year is expected to fuel technological innovations across the cloud computing and also includes industry experts and members of other professional bodies and academia. The government of India is already driving several cloud-computing projects under the guidance of the Department of Electronics & Information Technology (DeitY). 

The Indian market has shown particularly strong growth for the past few years and is predicted to continue to be one of the fastest growing countries in Gartner’s cloud forecast. IT spending on public cloud services in India is expected to reach $1.3 billion in 2017, said the report. According to Gartner, these and many more such initiatives will continue make India one of the fastest growing countries in terms of cloud adoption and usage in the coming  years.

[Read: Public cloud adoption in India to show greater maturity]