Indian businesses choose the cloud


Businesses started adopting cloud to host a wide array of applications.

The Indian public cloud services (PCS) market, including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) solutions, and software-as-a-service (SaaS), revenue totalled US$3.6 billion for 2020, according to the International Data Corporation (IDC) Worldwide Semiannual Public Cloud Services Tracker.

For the second half of 2020 (Jul-Dec), the Indian public cloud services market totalled US$1.9 billion. The overall Indian public cloud services market is expected to reach $9.5 billion by 2025, growing at a CAGR of 21.5 per cent for 2020-25, said Rishu Sharma, Principal Analyst, Cloud and Artificial Intelligence, IDC India.

“Public clouds played a critical role for organisations in 2020, driven by business continuity, flexibility, and agility. The coming times will see enterprise objectives directed towards digital resiliency, and cloud will be the foundation to it all,” he said. “Cloud will become crucial as organizations expedite the development process and deployment of business applications to meet the changing work and business environment.”

SaaS continued to be the largest component of the overall public cloud services market, followed by IaaS and PaaS in 2020. The spending continues to accelerate, with the top two service providers holding 49 per cent of the Indian public cloud services market for 2020.

The COVID-19 pandemic continued to be the key driver of cloud adoption as enterprises continued their investments in cloud infrastructure, platforms, and software to improve the resiliency of their business operations and equip them to tackle successive waves of the pandemic.

As business objectives aim at gaining resiliency, IDC expects cloud adoption to be further accelerated for rapid digital innovation, said Harish Krishnakumar senior market analyst at IDC India.

“Even though enterprises in the country have been discussing cloud adoption for the past few years, the COVID-19 pandemic forced enterprises to expedite their cloud strategy. This accelerated cloud adoption in the country by several years,” said Krishnakumar. “Businesses started adopting cloud to host a wide array of applications ranging from email servers to many complex systems like data warehousing, advanced analytics, etc.”

He noted there was an increased migration of enterprise applications to the cloud.

“Moreover, the remote working induced by the pandemic propelled the demand for remote storage capabilities and also resulted in increased adoption of cloud-based collaboration tools, VDI applications, etc.,” he said.


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