India public cloud computing to grow at 53 percent CAGR: CMR

DQW Bureau
New Update


According to

market intelligence and advisory firm CMR's India Cloud Computing


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.”


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


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, 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.


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.