The Indian Cloud services market is growing at a significant pace, despite perceived and actual challenges such as data security, compliance (privacy laws, local laws) and worries over uptime. Moreover, the way customers are consuming high performance computing is also undergoing major change. PAC estimates that the overall cloud market in India is worth around INR 50 billion, with more than 70% contribution from private cloud. This market is expected to grow by over 50% per annum for the next five years – considerably outpacing the global market as a whole.
Almost all system integrators and IT suppliers, such as IBM, TCS, HCL, Wipro and Infosys have made their existence felt in the cloud services market, although in terms of real adoption it has not really reached a position where they can make a lot of revenue. But they know that if they are not in this market today, there is a high risk of losing business in future.
Wipro started its cloud journey in 2010 with primary focus to bring process transformation using public SaaS and significant focus on IaaS, by offering private or public cloud through a hybrid set-up. Infosys launched its cloud offerings in mid 2011 and is currently working with companies such as Microsoft, Amazon, VMware, Cisco and is also tied up with over 30 partners globally.
PAC believes that the market is opening up with more investments in cloud based technologies. Indian companies are moving beyond pilot projects. Mainstream adoption has increased in many sectors for private clouds; the public cloud market is driven by manufacturing, retail and to some extend by public sector, as we have explored in previous PAC Blogs.
We also forecast that by 2016 more than half of enterprise workloads will be shifted to cloud structures (private and public). Software-as-a-Service (SaaS) and Infrastructure as a Service (IaaS) are no longer new in the market and indeed the adoption of SaaS is now mainstream among users of enterprise software solutions.
However, there are some challenges that need to be addressed to increase the adoption of cloud technologies in the country. The IT industry in India is still facing challenges such as skillset shortage, constant asset building etc. Academic institutions, in collaboration with NASSCOM, can play a major role to build a new talent pool for technologies such as cloud computing. Government can also play a big role in this transformation phase: it can start using cloud based models more efficiently to deliver citizen services which will provide momentum to cloud adoption in the country and develop the market.
Post by Biswajit Banerjee