Public cloud usage on rise in India: Zinnov

By : |July 4, 2012 0

BANGALORE, INDIA:  The overall Indian market for cloud (both public and private) has grown steadily to reach $860—$912 million in CY11, finds consulting firm Zinnov in its new study, ‘Public Cloud Opportunity in India’.

Of the total pie, the study highlighted that the public cloud market comprises of 20- 22 per cent of the share, while the remaining 78-80 per cent is accounted by private cloud. 

Change Catalysts since CY09 until CY11

                                 

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Market evolving from concept to reality; continues to be price sensitive; may not have hit the inflection point yet.
 
Virtualization, RIM, outsourcing’s acceptance in the Indian market opening avenues for cloud adoption.
 
Deep focus on market creation by a number of MNC and Indian companies. Talent availability at demand side is a challenge.

Adoption continues to be in e-mail, collaboration, CRM/ ERP.
 
Increasing preference for local infrastructure/ datacentres

Adoption evolving across verticals such as IT-ITeS, manufacturing, BFSI, education, retail, healthcare, etc.
 
Adoption by both large companies and SMBs. Strengthening of the channel partner ecosystem for cloud.

Developer ecosystem and start-ups starting to embrace public cloud. Number of telecom companies and SIs venturing into the cloud space.

 
The public cloud market has rapidly evolved in the last two years in India with significant traction across SaaS, PaaS & IaaS, added the study. With the current market of $160-192 million in CY11, public cloud in India is at a very nascent state of the market and may not have hit the inflection point yet, indicating significant future potential.

SaaS market in India is largely dominated by e-mail, collaboration tools, CRM/ ERP and currently stands at $123-143 million for CY11. The SaaS market has grown at a CAGR of 46 per cent from $56-67 million in CY09 until CY11.

Praveen Bhadada, director-Market Expansion, Zinnov Management Consulting, said, “Public Cloud market is expected to grow at 55 per cent CAGR in the near future and will become a default choice for new IT investments, especially in the SMB segment. We will not be surprised, if cloud takes up more than 20 per cent of the total Indian IT spend in the next couple of years. This would also mean that there will be a significant demand in the job market for cloud computing related skills.”

The PaaS and IaaS markets in India on the other hand are rapidly growing, though from a small base, highlighted the study. The PaaS market in India is at $1.5-2.5 million in CY11, which has grown at a CAGR of 75 per cent from $0.5-1.5 million in CY09.

IaaS market in India on the other side stands at $38-47 million as in CY11. This segment has seen a promising growth of CAGR 84 per cent from a market share of $11-14 million in CY09.

“Moreover, the huge global and domestic opportunity that exists in the cloud space, has excited a lot of Indian start-ups and infact 20 per cent of the total public cloud market in India is currently being addressed by Indian companies. Further to this, we have also witnessed that categories like SaaS and cloud computing, are being preferred for VC investments in India,” he added.

The study also highlighted that a multitude of trends are emerging in the Indian public cloud market. Some of them include, price sensitivity of the market; business model around long term contracts; acceptance of online payment options; focus on offline models; focus on SMBs, clusters and target verticals; channel focus to scale in the market; going local and increasing relevance for customers, besides many others.

Last but not the least and drawing some analysis on the growth numbers, the study read that as a result of the demand and supply forces, the public cloud market opportunity could reach potentially reach $685 million by CY14. 

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