Public cloud services in India expected to reach $7.3 billion by 2022: Gartner

Image credit: The Hindu

Due to the COVID19 pandemic, organisations had to adapt to the new normal of working, which has led to an increase in the adoption of cloud services.

End-user spending on public cloud services in India is expected to reach a total of $7.3 billion in 2022, an increase of 29.6 per cent from 2021, according to a recent report by Gartner, Inc.

“Public cloud services adoption has accelerated since the onset of the global pandemic. The pandemic was a tipping point for Indian businesses to realise the true value of public cloud,” said Sid Nag, research vice president at Gartner.

He further added that in India, the policy infrastructure is emerging as an important contributor to public cloud growth. For example, the recently launched public cloud government initiatives Meghraj and Cloud Vision for India 2022 will prove useful for small and medium businesses or those who are in early stage of cloud adoption to benefit from this technology.

Additionally, initiatives targeted towards building a skilled cloud workforce in partnership with private IT service providers will contribute to the government’s effort of strengthening the public cloud ecosystem in the country.

While still on the rise, Indian end-user spending on public cloud next year will be slower than the 34.6 per cent growth forecast in 2021.

Investment in Cloud

Indian CIOs are expected to focus their cloud investment on cloud system infrastructure services (IaaS). This segment is forecast to total $2.4 billion in 2022, up 40 per cent from 2021 (see Table 1). IaaS will make up 32.3 per cent of the total investments in public cloud services in 2022.

Segment 2020 2020 Growth (%) 2021 2021 Growth (%) 2022 2022 Growth (%)
Cloud business process services (BPaaS) total 242.4 9 1,414 12.4 1,895.60 8.2
Cloud application infrastructure services (PaaS) total 1,012.40 53.9 904.2 39.7 1,137.20 34.1
Cloud application services (SaaS) total 1,472.60 24 1,786.90 21.3 2,169.20 21.4
Cloud management and security services total 340.6 15 406.2 19.2 502.4 23.7
Cloud system infrastructure services (IaaS) total 1,075.30 48.4 1,690.80 57.2 2,367.50 40
Cloud Desktop as a Service (DaaS) 47.8 65 71 48.6 83.3 17.3
Total 4,191.10 34.4 5,641.40 34.6 7,312.70 29.6

“Public cloud growth continues to be driven by organisations that want to modernise their IT and reduce their capital expenditure spend.

The desire for agility and innovation in both business transformation and IT operations is also fuelling the growth of public cloud.

The next step in the growth of cloud in India will be the adoption of cloud native technologies. Indian CIOs will look to reimagine and refashion their applications and workloads using containers and microservices as well as artificial intelligence (AI) and machine learning (ML),” added Nag.

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. The report added that cloud services revenue reached $3.6 billion in 2020 and is expected to 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.

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