Breakup Of India's Billion Dollar Cloud Market

Summary:Cloud computing in India will be a Billion Dollar market & the government isn't oblivious to it.

The cloud computing market in India is quite interesting with local and international players announcing partnerships and products. TCS announced iON which they hope to make a Billion Dollar business in 5 years, and more recently, Indian telcommunication giant Bharti Airtel entering the market in a partnership with HP . As I wrote in an earlier piece, Mahindra, Infosys, Wipro and TCS see potential in IaaS, SaaS and PaaS. Competing with these local players are reputed international names like Microsoft's Windows Azure and Amazon's expected launch in India.

In a recently released study, research firm Zennov says the cloud computing market ranged between $860M to $912M in 2011. Zennov's report broke the numbers to give us some insight:

  • Private Cloud: 78—80%
  • Public Cloud: 20—22% worth $160M to $192M in 2011

The Public Cloud contribution in 2011 has been broken into three primary categories:

  • SaaS (CRM/ERP, Email and collaboration tools): $123M—$143M
  • PaaS: $1.5M—$2.5M
  • IaaS: $38M—$47M

According to Pranav Bhadda from Zinnov Management Consulting they project:

  • Public Cloud CAGR growth of 55%
  • Cloud to have more than 20% of IT spending 

These are very positive numbers for a country with less than stellar Internet connectivity. 

The government of India for their part seems to be aware of this new enterprise tool. At a cloud computing industry conference, India's Minister for Communications and Information Technology assured the government's support to infrastructure around cloud computing. The statement issued by the government says:

The government is willing to collaborate with the industry and academia to develop a secure and progressive ecosystem for cloud services in India.

Various state governments in India are opting for e-governance platforms which leverage cloud computing technologies and security is a major concern. Whether the government comes up with industry wide security policies or not remains to be seen.

Topics: India, Cloud

About

I completed a diploma in Electronics before finishing a Bachelor's Degree in Electronics and Telecommunications. End-user technologies interest me a lot. Being a news-junkie, following and writing about what's current and interesting is something I enjoy.

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