Indian cloud market to be worth USD 20 billion, Public cloud key driver

Decision making on cloud investments within enterprises is no longer being controlled by the IT departments

Indian cloud market is still on rise, thanks to the blooming public cloud spending. For the present year, 2016, spending on public cloud is going to cross the USD 1 billion mark. It is expected to multiply and reach USD 4 billion by 2020 with CAGR of 34% by 2020, as predicted by Zinnov.


 Investments in local datacenters, maturing channel partner ecosystem, and rapidly growing developer ecosystem are driving the cloud spending in public sector and will continue to dominate the market landscape.


Total cloud spending including both public and private cloud will cross the USD 10 billion mark by 2020, according to Zinnov.


SaaS will continue to be the biggest spend category within public cloud with spending of USD 2.6-2.8 Billion, followed by Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) cumulatively accounting for USD 1.2 billion by 2020.


While the mature enterprise ecosystem is driving significant demand, the vibrant SMB/start-up landscape and government initiatives are indeed bound to increase the public cloud consumption going forward, said the Zinnov report.


Public cloud adoption is gaining momentum across leading industry verticals and some of the key trends across these verticals state the following -

  • IT/ITeS vertical accounts for 35-45% of total public cloud spending.

  • Manufacturing companies will leverage SaaS solutions to augment customer outreach.

  • Massive investments in India datacenter setup by technology vendors is driving the cloud adoption.

  • EMR, EHR and Genomics expected to drive demand for data storage in cloud. Healthcare analytics is witnessing increased traction in the market.

  • Retail/e-commerce targeting and need for Data analytics at scale is driving adoption.

  • Increased focus on digital customer experience will drive cloud adoption.


The report further noted that the decision making on cloud investments within enterprises is no longer being controlled by the IT departments and is involving a lot many stakeholders from the business, product, marketing and technology groups, among others. Cloud providers will need to alter their sales and marketing approaches significantly to articulate value and ROI to a variety of such stakeholders. Cloud will soon move from being seen as a technology investment area to an approach to maximize customer, partner and employee value.


Add new comment