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Cloud has lived up to the hype, sees a hefty 45 pc CAGR

The total cloud market in India will grow at 45 percent CAGR to $14.8 Billion in 2020, says a recent Zinnov study

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BANGALORE, INDIA:  The total cloud market in India will grow at 45 percent CAGR to $14.8 Billion in 2020, says a recent Zinnov study. Multiple factors are expected to result in significant adoption of cloud solutions. Some of the primary drivers are setting up of local datacenters.

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Pari Natarajan – Co Founder and CEO, Zinnov Management Consulting said, “We believe multiple factors are driving the adoption of cloud solutions. We see cloud advertising, software as a services and business process as a service becoming critical categories of cloud adoption.”

The expected 3X increase in internet penetration backed by a digital India initiative that is expected to attract $17 Billion investment in next 3-4 years. 90 percent of SMB’s are expected to be tech influenced by 2020. This coupled with over 3X growth in total number of technology startups in India offering vertical specific innovative solutions backed with affordable pricing will also drive adoption of cloud solutions.

Here are some projections at a glance:

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  • Total Cloud Market in India to grow at 45 percent CAGR to 14.8 Billion
  • Cloud contribution to IT Spend to rise to 17 percent of overall market by 2020
  • Public Cloud Market in India is $700 -800 Million in 2015 and will rise to $7.0-7.4 Billion in 2020
  • Private Cloud Market in India is $1.6-1.8 Billion in 2015 and will rise to $7.4-7.6 Billion in 2020

Study finds that Indian CIO’s site favorable reasons for continued success of the cloud market including cloud technology being the number one priority and the belief the SMAC stack will provide a competitive advantage for their organizations.

Organisations with 500+ employees are seeing tangible benefits from cloud computing, reveals another research conducted by Tata Communications. 83 percent of enterprises feeling they have experienced benefits they did not expect to see. The most popular of these benefits cited by respondents were: increased productivity (69 percent), better access to data (65 percent), and reductions in costs (63 percent).

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The research suggests that enterprises are realizing competitive advantages from cloud deployments. Nearly two thirds (65 percent) of respondents said using the cloud had led to increased speed of access to technology. In terms of streamlining business processes, over two thirds (67 percent) have experienced reduced delivery times to clients and partners. 54 percent have seen the delivery time of new services to new markets and / or geographies reduced.

The findings also showed that by 2024 off-premises storage will have overtaken on-premises alternatives, with enterprises forecast on average to have 58 percent of their compute and data storage held in the cloud in ten years’ time compared with 28 percent currently.

When asked how much of their IT provision would be stored in private cloud specifically by 2024, respondents predicted an average of 52 percent - highlighting the dominance of private cloud storage. However, 94 percent of respondents say they would be more likely to adopt a hybrid cloud computing model if connections with the public cloud were more predictable.

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