A recent report by Ernst & Young (EY) in association with the Federation of Indian Chambers of Commerce & Industry (FICCI) paints an encouraging picture for cloud computing in India. The report is based on a survey of 700 Indian companies across 20 sectors in seven cities.
Tracing the reasons behind growth of cloud in India, it says, “Consumer-facing technology is being revamped to become context aware and intelligent, using advanced AI and Machine Learning (ML) algorithms to sell and service consumer needs. Supply chain platforms are moving to real-time and resilient architectures,” adding, “At the core of all these services lies the cloud, which has revolutionized the way services are offered by both the government and enterprises.” It recognises, “India has a vibrant cloud ecosystem and a fertile cloud talent base.”
The EY-FICCI survey found that as many as 63% companies had adopted cloud “for monetization of data and to get valuable insights.” It further found, “Almost all companies investing in new data platforms are building them on the cloud.”
Some other findings of the survey are as follows:
- For 80% organizations, cloud helps enable data and analytics capabilities
- 78% organizations already have more than 30% data on cloud
- 58% are focusing on new workloads for modernization initiatives
“As many as 80% of larger companies and 83% of mid-sized companies have more than 30% of their data on the cloud, while only 66% of small companies are doing so as of now,” it says.
The EY-FICCI report further found that among the companies it surveyed, around two in every five organizations follow a hybrid approach, which is becoming a popular choice as it provides scalability and security. It further said, “In the past few years, cloud hyperscalers have seen multi-fold growth and, as the survey shows, organizations are moving beyond proof of concept. Cloud is now becoming critical infrastructure for enterprises.”
The report also acknowledges the role of Global Capacity Centers (GCC) in driving cloud growth. India currently hosts 1,500 GGCs, and according to the report, “In the next two years, around 200 new GCCs are expected to open in India, particularly in sectors such as banking, financial services, and insurance (BFSI), telecom, IT consulting, healthcare, pharma, and hospitality, where companies are focusing on modern disruptive technologies.”
The report also acknowledges the findings of a Nasscom report while making projections about the future value of India’s vibrant cloud ecosystem. It says, “Cloud is expected to add value worth US$ 310-380 billion to India’s GDP in 2026, accounting for approximately 8% of relative GDP, according to a Nasscom report. It could also create about 14 million direct and indirect employment opportunities.”