Public Cloud Services to Touch $4.1 Billion in 2021

Public Cloud Services to Touch $4.1 Billion in 2021

The end-user spending of public cloud in India to grow big next year – claims a recent Gartner study.

In the run towards the cloud-centric digital infrastructure, public cloud services are predominantly driving the way for businesses in India. According to the latest study by Gartner, the end-user spending on public cloud services is projected to reach $4.1 billion in 2021. This is a surge of 29.4% from 2020.

The researchers analyzed the outlook of the developing Indian IT sector during the Gartner IT Symposium/Xpo India. Basically, the pandemic triggered the beginning of the Cloud 2.0 era – as more enterprises had been moving their operation online.

As mentioned by Sid Nag, Vice President of research at Gartner, in the company blog post – “Indian enterprises were not ready for the large scale of remote work. However, public cloud delivered on its promise of scalability, cost efficiency, and business resilience for Indian enterprises during this critical time in 2020.”

With digitalization efforts further evolving in the country, a public cloud would become a must-have technology for most Indian enterprises. Furthermore, the spending on cloud infrastructure and managed services will make up about 8% of total IT spending in 2021.

The low cost of entry delivered by the public cloud will be a significant influence on Indian enterprises. As a result, CIOs are most likely to increase their spending on cloud and advanced technology in the price-sensitive marketplace.

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Even if the cloud application services (SaaS) sector is estimated to be the largest division of the public cloud services market in 202, the cloud system infrastructure services (IaaS) are forecasted to see the most considerable growth in the Indian market – at a rate of 44.6%.

Unsurprisingly, COVID-19 accelerated the cloud adoption rate across industries as CIOs migrated from their legacy systems into public cloud services. This helped companies to maintain business continuity and resilience throughout the economic turmoil in 2020.

However, the Indian marketplace is at the early stage of cloud adoption compared to its global counterparts. Indian organizations moved critical business solutions, including web hosting, email, customer relationship management (CRM), human resources (HR) to the cloud, enterprise resource planning (ERP), and more.

This ensured the employees to access data anytime and from anywhere, provided they have internet connectivity. In fact, the latest investment by hyperscalers like Amazon Web Services, NTT, and Google Cloud further testify to the openings for public cloud to grow in the Indian IT market.

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Though end-user spending on cloud is growing, there is a long way for Indian firms to attain similar market maturity as of the US or Europe. India-based companies and their CIOs need to focus on this cultural shift. It will make businesses more cloud-ready, enabling them a competitive edge, at least within the Indian business scenario, and perhaps catapult them to the global platform fast enough.

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