New Delhi, November 3 2020: As a fallout of the extended Covid lockdowns, more than 60% of the Indian organizations plan to leverage cloud platforms for digital innovation. They are re-strategizing their IT spending plans and accelerating investment in an agile cloud infrastructure to address the challenges arising from the spread of the pandemic,finds a study by IDC.
Says Rishu Sharma, Principal Analyst for cloud & artificial intelligence at IDC India: "Cloud continues to be the underpinning platform for all digital transformation initiatives and has therefore seen an acceleration in demand. Strategic investments in technology will become imperative to minimize the adverse impact and make businesses more resilient. The role of providers will become crucial in helping organizations flatten the curve and leverage cloud in their next normal.”
The India public cloud services (PCS) market is projected to touch $7.1 billion by 2024 growing at a CAGR of 20.3% between 2019-2024. Cloud serves as a foundation to modernize IT and businesses by providing flexibility, scalability, and agility. Although most organizations in India have adopted cloud at some stage, the current pandemic situation has now enabled organizations to spend more on public cloud infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) solutions, and software-as-a-service (SaaS).
SaaS forms the largest component of the overall public cloud services market in India, followed by IaaS and PaaS. With the changing strategy, over 56% of the Indian organizations plan to increase their spend on SaaS services, as a result of COVID-19. In 2019, the top two providers in the SaaS segment accounted for nearly 52% of the total SaaS market. In the IaaS segment, the top two providers accounted for over 78% in 2019.
Adds Swapnil Shende, Senior Market Analyst for artificial intelligence at IDC India.: "COVID-19 significantly impacted organizations looking at cloud for business continuity and gaining resiliency. Organizations are planning to leverage cloud for digital innovation and accessing innovative ecosystems, in addition to gaining flexibility and meeting up additional demands."
The above analysis has been published in a new IDC report, ‘Market Analysis Perspective: India Cloud, 2020', that examines the state of the India cloud market focusing on aspects including the overall size of the public cloud market in India, the forecasted growth, organizations' plans, leading players across segments, and how organizations will be leveraging cloud transitioning to the next normal.