Penetration of Cloud Services in India to grow to 6.8 percent by 2012

The public Cloud Computing market in
India is estimated to touch Rs 2,434 crore in 2014 after growing at a CAGR of
53 percent between 2010-2014, according to CyberMedia Research.


Cloud computing is witnessing
widespread interest from the vendor-service provider-channel community on the
one hand and business leaders and CIOs on the other,” said Kamal Vohra, Lead
Analyst, India Software and IT Services Research, CyberMedia Research.

This is fuelled by the strong
belief that 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, upfront capital
investments in IT infrastructure can be converted into smaller, manageable
‘pay-per-use’ annuity payments,” Vohra added.

ICT vendors and service providers
need to launch awareness and education programmes 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 customer sets
across a range of industry verticals, businesses and country- or
region-specific statutory legal frameworks.

Penetration amongst Indian
enterprises was 4 percent in 2010. This is expected to rise to 6.8 percent for
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 rates
of growth in 2010 over 2009 include 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 touch Rs. 465 crore by end 2011, a growth of 50 per cent over 2010.
However, we are still a few years away from the time when we see mission
critical enterprise applications running on cloud platforms

The Indian Telecom Service Providers
(TSPs) and Internet Service Providers (ISPs) are also realizing the business
opportunities offered by the new ‘cloud computing’ paradigm. TSPs and ISPs are
in a position to launch cloud computing services, primarily ‘Infrastructure as
a Service’ or ‘IaaS’. Indian Telcos such as Reliance Communications, Tata
Communications and state-owned BSNL have announced plans to address this emerging
opportunity. 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

By Team
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