Cloud spending in India is expected to reach $7 billion by 2022, growing at 30% per annum, according to the latest cloud report by Nasscom. The market was expectedly valued at only $2.5 billion in 2018. This means that the cloud market in India will be valued at 3-times of the current level, by 2022.
The report, titled “Cloud – Next Wave of growth in India”, states that India will continue to remain a market that thrives under the dual opportunity of serving domestic and international demand, as well as enjoying higher consumption of data with the advent of high-speed mobile connectivity.
On the other hand, the cloud spending market around the world will reach $345 billion by 2022, growing at 16.5% per annum.
Spending on infrastructure as a service (IaaS) segment in India is predicted to grow 25% p.a., and reach $2.3 billion by 2022. Nasscom said that improved infrastructure facilities, economic benefits, increased innovation, vibrant startup ecosystem, and connected ecosystem will drive the IaaS uptake in the country.
Whereas, software as a service (SaaS) exports from India will reach $19 billion by 2022. This will contribute to around 15% of the global demand. The demand for SaaS in the domestic market is driven by the adoption and growth of computing and a digital ecosystem in the SME sector.
“Cloud Computing has emerged as the next wave in computing and has been increasingly adopted across businesses as well as consumers,” states the report.
“While Software-as-a-Service offerings have always been dominant, Infrastructure-as-a-Service and Platform-as-a-Service are gaining steam with the rise of use-cases across futuristic technologies such as Artificial Intelligence, Machine Learning, Advanced Analytics, Immersive Media and so on.”
In India, the IT/ITeS sector is the highest spender in the cloud (around 25%), followed by the manufacturing industry (around 20%).
Data security, interoperability, loss of control, regulatory compliance, vendor ecosystem lock-in, and cost savings uncertainty, are the main challenges to surmount for increasing cloud adoption.