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End-user spending on public cloud services in India is forecast to total $3.4 billion in 2020, a 25 per cent rise from 2019, and positioning India as No. 3. China and Indonesia will be the countries with the highest growth rates in end-user spending on public cloud services in 2020, according to a Gartner study.
“Moving to the cloud and investing in public cloud services have become imperative to the success of digital business initiatives. It’s no longer a question of ‘why’, but a matter of ‘when’ organisations can shift to the cloud,” said Sid Nag, Research Vice- President at Gartner.
“We have entered the cloud 2.0 era, where organisations are adopting a cloud-first or a cloud-only strategy,” he added.
Cloud application services (SaaS) is the segment where end-user firms in India will spend the most and represent 42 per cent of overall public cloud services end-user spending in 2020. End-user spending on SaaS cloud application services in India will total $1.4 billion in 2020, an increase of more than 21 per cent year-over-year.
“Organisations are moving their legacy applications to SaaS because SaaS provides them with the flexibility of subscription-based consumption, in contrast to expensive licence-based on-premises consumption models. SaaS adoption is associated with a lower cost of entry, which is one of the reasons for the high investment in this segment in India, a price-sensitive market,” said Nag.
Consolidation in cloud market
The next wave of changes that Indian CIOs foresee is consolidation in the cloud services market. “The disinvestment in data centres by small and niche cloud service providers has increased the opportunities for hyperscale vendors such as Amazon Web Services, Microsoft and Alibaba, to disrupt the cloud infrastructure services market rapidly,” said Nag.
Market leaders such as Google, Amazon, Microsoft, Alibaba and IBM currently dominate global cloud infrastructure services market, and will retain the lead as the market grows.
By 2021, about 90 per cent of global enterprise customers using cloud IaaS will take a multi-cloud approach.
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