A new report by International Data Corporation (IDC) says that the Indian Public Cloud Services (PCS) market, including Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) solutions, and Software-as-a-Service (SaaS), revenue totalled US$ 3.8 Billion in H1 (the first half: January-June) of 2023.
IDC is a global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. The report titled Worldwide Semi-annual Public Cloud Services Tracker, further said that the overall Indian public cloud services market is expected to reach US$ 17.8 billion by 2027, growing at a Compounded Average Growth Rate (CAGR) of 22.9 percent during 2022-27.
Rajiv Ranjan, Associate Research Director, Cloud and Artificial Intelligence, IDC India, explained, “Public cloud services in India have evolved beyond just cost savings and flexibility,” adding, “Enterprises are increasingly investing in modernizing applications, developing cloud-native solutions, and exploring artificial intelligence.” He further said, “While enterprises are ramping up investments in GenAI, chatbots, and conversational AI tools, GenAI tools are specifically used for cost optimization, application development, and workload testing use cases. In the future, GenAI is expected to help more in cloud security and cloud infrastructure management as well. All these investments will drive public cloud services growth in India.”
In statement, IDC said, “SaaS continued to be the largest component of the overall public cloud services market, followed by IaaS and PaaS in 1H 2023. The top two public cloud service providers continue to hold more than 40 per cent of the market.” It further said, “Traditional segments such as IaaS, collaborative applications, CRM, and ERM continue to drive growth. Simultaneously, service providers also witnessed a surge in demand for offerings around AI and data management, highlighting the evolving needs in cloud service offerings.”
It is noteworthy that in a statement published in June 2023, IDC had pegged the growth at 23.4 per cent. The new figure therefore appears to be a downward revision.
