India’s public cloud services market to grow 24.1% CAGR, reach $10.8 billion by 2025: IDC

The COVID-19 pandemic impact continued to be the key driver of cloud adoption in the first half of 2021, as enterprises continued their investments in cloud infrastructure.

cloud services
Additionally, cloud-native services are becoming crucial for enabling new architectures and functionalities. (Representative image)

The overall Indian public cloud services market is expected to reach USD 10.8 billion by 2025, growing at a CAGR of 24.1 per cent for 2020-25, according to research firm IDC.

India’s public cloud services (PCS) market – which includes infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) solutions and software-as-a-service (SaaS) – revenue totalled USD 2.2 billion for the first half of 2021 (January-June), it said.

“Cloud continues to be the foundational pillar for innovation, collaboration, and digital transformation and is witnessing an accelerated adoption by enterprises in India.

“Organisations in India cite increased investment plans for cloud infrastructure and platforms in the coming 12 months to aid in faster and more effective ways of application development and access to technologies,” IDC India Associate Research Director, Cloud and Artificial Intelligence, Rishu Sharma said.

Additionally, cloud-native services are becoming crucial for enabling new architectures and functionalities, Sharma added.

SaaS continued to be the largest component of the overall public cloud services market, followed by IaaS and PaaS in the first half of 2021, IDC said.

The COVID-19 pandemic impact continued to be the key driver of cloud adoption in the first half of 2021, as enterprises continued their investments in cloud infrastructure, platforms, and software to improve the resiliency of their business operations, it added.

Apart from large enterprises, small and medium businesses also continued to witness a significant increase in public cloud adoption due to the demand for cloud-based applications for collaboration, Enterprise Resource Management (ERM), Customer Relationship Management (CRM), security, etc.

“The accelerated adoption of public cloud is expected to continue in the upcoming years, as enterprises expedite their digital transformation initiatives by increasingly leveraging emerging technologies, with public cloud being the bedrock, to improve business resiliency and deliver enhanced customer experience,” IDC India Senior Market Analyst Harish Krishnakumar said.

With many businesses expected to transition to a hybrid work model in the upcoming months, it would result in an increase in public cloud investments due to the demand for remote compute and storage, conferencing and collaboration applications, VDI, cloud security, etc, Krishnakumar added.

 

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