Public cloud services market to grow 24%

Public cloud services revenue in India is projected to total $2.4 billion in 2019, an increase of 24.3% from 2018, according to Gartner. Although India revenue will only represent 1.2% of the global public cloud services total in 2019, India ranks among the nine countries whose growth rate will be higher than the global average growth rate (16%).

India is also on pace to record the third-highest growth rate in 2019 after China (33%) and Indonesia (29%), taking into consideration that their revenue base is much smaller than those of mature markets. “The shift from ‘cloud first’ to a ‘cloud only’ model is pushing organizations in India to increase their spending on public cloud services to advance their digital business initiatives,” said Sid Nag, research vice president, Gartner.

“Disinvestments in new data centers are also one of the early signs of this move,” added Nag. Cloud application services (SaaS) is on pace to be the fastest-growing market segment in India in 2019, accounting for nearly half of total public cloud services revenue year over year. SaaS revenue is estimated to grow 23% in 2019 to reach $1.15 billion. It is followed by cloud system infrastructure services (IaaS) spending, which is estimated to grow 22% in 2019. The growth of SaaS spending is fueled by increased end-user spending on customer relationship management (CRM), as organizations in India move away from commercial off-the-shelf (COTS) and license-based on-premises software to a subscription-based SaaS model to gain agility, innovation and cost efficiency. The move to digital is forcing Indian organizations to increase their spending on security, as digitalizing platforms and networks brings with it heightened exposure to threats and risks.

“We’ve witnessed an increase in the number of targeted attacks on Indian organizations compared to a few years ago,” said Rajpreet Kaur, principal research analyst at Gartner.

“They will continue to rise if local CIOs or CISOs don’t develop a cybersecurity roadmap,” added Kaur.

 

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