Cloud spending in India to cross $10 billion by 2020: Report

September 18, 2016

cl10India is definitely a country with huge potential market for cloud computing services.Cloud market will present a $10 billion opportunity by 2020 and positions India as a strategic market for global cloud vendors.
The worldwide public Cloud services market is expected to grow 17.2 percent to total $208.6 billion this year — up from $178 billion in 2015, market research firm Gartner said.
The highest growth will come from Cloud system infrastructure services which is projected to grow 42.8 percent this year, the report said. ”Growth of public Cloud is supported by the fact that organisations are saving 14 per cent of their budgets as an outcome of public Cloud adoption,” Sid Nag, Research Director, Gartner, said in a statement.
Cloud application services is also expected to grow 21.7 percent to reach $38.9 billion this year. IT modernization is currently the top driver of public Cloud adoption, followed by cost savings, innovation, agility and other benefits, the report added.
Cloud computing frees companies from potentially expensive costs of purchasing, managing and maintaining hardware and software infrastructure.
Software-as-a-Service (SaaS) is expected to continue to be the biggest spend category within public cloud at $2.6-2.8 billion, followed by Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) cumulatively accounting for $1.2 billion by 2020.
While the mature enterprise ecosystem is driving significant demand, the vibrant SMB/startup landscape and government initiatives are indeed bound to increase the public cloud consumption going forward, the report said.
IT/ITeS vertical accounts for 35-45% of the total public cloud spending, while massive investments in data centres by technology vendors for banking, financial services and insurance segment is driving cloud adoption.

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