Indian Cloud Computing market: small now, but growing fast: IDC

03rd December 2010
Indian Cloud Computing market: small now, but growing fast: IDC


'Cloud' solutions may rise to 6.8% of large and mid-size enterprises by 2012.

The India Public Cloud Computing market is estimated to be worth US$ 66.7 million in 2009 and is projected to grow at a compounded annual growth rate (CAGR) of 40% over the next five years to $ 541m by  2014 says market intelligence and advisory firm IDC.

“The phenomenon of Cloud Computing has gained wide interest amongst business leaders and CIOs. The most attractive feature of this new technology deployment is the prospect of converting large, upfront capital investments in IT infrastructure into smaller, manageable 'pay-per-use' annuity payments. This feature has sparked a high degree of interest and debate amongst technology vendors, users and channel partners alike”, says Kamal Vohra, Lead Analyst, Software and Services Research at IDC.
“The India Cloud Computing Market: Current State and Future Roadmap Study 2010” mapped the current adoption levels and preferences of Indian enterprises based on interviews with nearly 700 medium and large enterprises. This included 'users' (enterprises with deployments of public and private cloud computing solutions), 'intenders' (enterprises that plan to deploy cloud computing solutions within 24 months) and 'non-intenders' (enterprises that currently do not have any plan to deploy cloud computing solutions).
Cloud Computing being at a nascent stage, there is an issue of lack of awareness and understanding, which affects the overall adoption of cloud computing in India. Adoption in India is expected to rise to 6.8% of large and mid-size enterprises by 2012, finds the study.
“A significant segment of the market is aware of the concept, but do not really understand what it actually means or how it can benefit them. This lack of proper awareness and understanding of the concept has limited its appeal and market acceptance in the country. But as the market matures and enterprises begin to understand the real benefits of cloud computing, more adoption of cloud computing solutions can be expected”, says Indranil Dutta, Lead Analyst, User Research
The study also reveals the evolving role of channel partners in the cloud ecosystem. Adds Kamal, “Channels should move away from just ‘clipping a ticket’ as is the practice when they resell a product or service. Channel partners who just view cloud services as another SKU to resell will struggle. The serious contenders, especially from amongst the system integrator fraternity will have to recognize that the cloud provides an opportunity to bring more to the table.” 
Dec 3 2010