Spending on cloud services is expected to cross $10 billion by 2020, driven by factors like investments to set up local data centres and rapidly growing developer ecosystem in the country, according to research firm Zinnov.
India continues to be a prominent market for cloud technology adoption and public cloud market is likely to cross the $1 billion mark in 2016, Zinnov said in a study titled ‘Indian Public Cloud Market Landscape’.
Public cloud, under which a third-party cloud service provider makes resources like applications and storage available to the general public over Internet, is expected to grow at a CAGR of over 34 per cent to touch $3.9-4 billion by 2020.
Cloud computing frees companies from potentially expensive costs of purchasing, managing and maintaining on-premises hardware and software infrastructure.
“With multiple growth drivers like investments in local datacenters, maturing channel partner ecosystem, and rapidly growing developer ecosystem, cloud spending will continue to dominate the market landscape and cross the $10 billion mark by 2020, including both public and private cloud spending,” the study said.
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 per cent 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.
Other sectors like manufacturing, healthcare, retail/ ecommerce and telecom are also driving adoption.
“Cloud market will present a USD 10 billion opportunity by 2020 and positions India as a strategic market for global cloud vendors. We expect technology companies to continue to make investments in innovative go-to-market strategies and partnerships to tap this huge opportunity,” Zinnov Partner and Practice Head Praveen Bhadada said.
Zinnov expects to see at least 15-20 top global cloud companies enter India market in a big way in the next 12 months, he added.