Budgets for cloud spending in India will skyrocket past US$10bn mark in 4 years
INCREASING adoption of cloud technology in India will see spending on these services to cross the US$10 billion dollar mark by 2020, according to a new report.
Management consultants Zinnov said that investments in local data centers, increasing numbers of companies looking to provide cloud services and a rapidly growing developer ecosystem were driving the expansion in a report titled ‘Indian Public Cloud Market Landscape’.
The report says the value of the public cloud market is likely to cross US$1 billion in 2016 and is expected to grow at a compound rate of more than 34 percent to around US$4 billion by 2020. Public cloud services make resources like computer programs and storage available to the general public over the Internet.
“Cloud market will present a US$10 billion opportunity by 2020, and this positions India as a strategic market for global cloud vendors. We do expect technology companies to continue to make investments in innovative go-to-market strategies and partnerships, to tap this huge opportunity,” Zinnov partner and practice head Praveen Bhadada told the Hindu.
The biggest spend category for public cloud services by 2020 will remain Software-as-a-Service (SaaS), according to the report, followed by Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS).
The IT and IT-enabled services sectors accounts for 35 to 45 percent of total public spending according to Zinnov, but financial services, manufacturing, healthcare and retail players are increasingly piling in.
“India currently boasts of 1,600-1,800 capable partners fulfilling public cloud demands in the market. These partners provide extensive customer reach and technical capabilities to support cloud initiatives of cloud technology providers and are helping to grow the market significantly,” Rajat Kohli, Zinnov’s engagement manager, told Business Standard.