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According to
market intelligence and advisory firm CMR's India Cloud Computing
Market
Review, May 2011 edition, the India public cloud computing market is
estimated to touch Rs 2,434 crore in 2014 on the back of a compounded
annual growth rate (CAGR) of 53% over the five-year period 2010-2014.
According to
Kamal Vohra, lead analyst, India Software and IT Services Research,
Research, “The advent of the cloud computing paradigm is
witnessing widespread interest from the vendor service
provider-channel community on the one hand and business leaders and
CIOs on the other. This is fueled by the strong belief that the advent
of cloud computing will allow a large number of SMB
enterprises to adopt the same enterprise-class software and
technology solutions, which were earlier the exclusive preserve of
large enterprises. This, in turn is expected to allow the market for
software solutions to open up; as large capital investments in IT
infrastructure can be converted into smaller, manageable
'pay-per-use' annuity payments.”
“ICT
vendors and service providers need to launch awareness and education
programs targeted at channel partners and customers. They also need
to develop and bring to market, innovative 'cloud' versions of
their solutions to address the needs of diverse customers across a
range of industry verticals, businesses and country, or region
specific statutory legal frameworks,” added Apalak Ghosh, analyst,
emerging technologies, India Software and IT Services Research,
CyberMedia Research.
As per CMR's
India Cloud Computing Market Review 2011, May edition, a survey
'users' and 'non-users' of cloud computing showed that
penetration amongst Indian enterprises was at 4% during 2010. This is
expected to rise to 6.8% of all large and mid-size enterprises in the
country by 2012.
As the
market
matures and more industry vertical specific and business
function-specific applications become available, more users in India
have taken to cloud computing solutions for enterprise workloads.
Some of the key SaaS applications that showed high rate of growth in
2010 over 2009 includes-CRM solutions from players like
Salesforce.com, collaborative applications such as conferencing and
messaging, and supply chain management solutions. “The overall
India SaaS market is expected to grow 50% over 2010, to touch Rs 465
crore by the end of 2011. However, we are still a few years away from
the time when we see mission critical enterprise applications running
on cloud platforms,” Vohra further added.
Another
development is the increasing realization amongst Indian telecom
service providers (TSPs) and Internet Service Providers (ISPs) about
the business opportunity offered by the new 'cloud computing'
paradigm. TSPs and ISPs are in a vantage position to launch cloud
computing services, primarily the cloud computing flavor
'Infrastructure as a Service' or 'IaaS'. The growth of the
India IaaS market is expected to be relatively slow in the 2010-2012
time-frame, but is expected to pick up thereafter. The overall CAGR
for the India IaaS market during 2010-2014 is expected to be 49%.
Telcos and
ISPs are well positioned to offer cloud services with ease since they
already have their data centers and bandwidth pipes in place, both of
which play a pivotal role in delivering cloud services. “The major
focus of the IaaS marketing initiatives of service providers would be
on the SMB enterprise segment. To increase and support adoption and
market growth, these players will need to support their delivery
mechanisms with a combination of experienced technical staff and
cloud services that are relevant and appropriate to the Indian
business environment,” Ghosh concluded.