The Indian Public Cloud services market is expected to reach $9.5 billion by 2025.
According to IDC’s ‘Worldwide Semiannual Public Cloud Services Tracker’, report, cloud services revenue reached $3.6 billion in 2020 and grow at a CAGR of 21.5 percent.
The Indian public cloud services (PCS) market, include infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) solutions, and software-as-a-service (SaaS).
For the second half of 2020, the Indian public cloud services market totalled $1.9 billion, the research agency said.
“Public clouds played a critical role for organizations in 2020, driven by business continuity, flexibility, and agility. The coming times will see enterprise objectives directed towards digital resiliency, and cloud will be the foundation to it all.
Cloud will become crucial as organisations expedite the development process and deployment of business applications to meet the changing work and business environment,” said Rishu Sharma, Principal Analyst, Cloud and Artificial Intelligence, IDC India.
Growth Drivers
SaaS continued to be the largest component of the overall public cloud services market, followed by IaaS and PaaS in 2020.
The spending continues to accelerate, with the top two service providers holding 49 percent of the Indian public cloud services market for 2020.
The COVID-19 pandemic continued to be the key driver of cloud adoption as enterprises continued their investments in cloud infrastructure, platforms, and software to improve the resiliency of their business operations and equip themselves to tackle successive waves of the pandemic.
As business objectives aim at gaining resiliency, IDC expects cloud adoption to be further accelerated for rapid digital innovation.
“Even though enterprises in the country have been discussing cloud adoption for the past few years, the COVID-19 pandemic forced enterprises to expedite their cloud strategy. This accelerated cloud adoption in the country by several years.
Businesses started adopting cloud to host a wide array of applications ranging from email servers to many complex systems like data warehousing, advanced analytics, etc. There was also an increased migration of enterprise applications to the cloud.
Moreover, the remote working induced by the pandemic propelled the demand for remote storage capabilities and also resulted in increased adoption of cloud-based collaboration tools, VDI applications, etc.,” said Harish Krishnakumar, Senior Market Analyst, IDC India.
A lot of organisations have been shifting to cloud ever since the pandemic began in 2020.
“It is also important to carry out a cloud assessment. In the current times we have a number of cloud providers and various data centres with private cloud approaches.
It is important to carry out the assessment to decide what fits your organisation the best,” said Shobhana Lele, CIO, The Bombay Dyeing Manufacturing Company Limited.
“There’s a strong correlation to the bottom lines of corporations and cloud transformation.
It’s good to see that we are able to add direct value to the bottom line of enterprises we work with and this study has proven that we have a phenomenal opportunity,” said Narsimha Rao, EVP and head of cloud, infrastructure and security services, Infosys.