Breakup Of India's Billion Dollar Cloud Market

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.

TOPICS: India, Cloud

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

Manan Kakkar

About Manan Kakkar

Telecommunication engineer with a keen interest in end-user technology and a News junkie, I share my thoughts while preparing for my Master's in Information Management.

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  • What's the use?

    The internet infrastructure in India is a major fail, with paltry internet speeds. Plus 3G is too costly so using cloud on the phone much isn't too nice an option either. This is like learning to run before learning to walk. First improve the internet speeds, make them cheaper, then go for cloud.
    • 3G

      3G is dirt cheap in India.
      Manan Kakkar
    • I don't think that internet infrastructure is a fail in India.

      3G is not so costly. Broadband is okay.. See, requirements will force internet providers to provided faster service at cheaper cost. Most of the city youngsters are 24*7 connected to internet by some means. My 57 years old father activated GPRS on his handset (mostly because BSNL had some less costly offer.. He was asking me what should he do next.. I asked him that now we need a better mobile, and I am pretty sure he will get 3G connection for with new handset).. My relatives who still live in small villages are now hooked to Facebook via 3G or broadband.. With such a common adaption, service is bound to get cheaper..

      Many of people that I have came across say that 300 MBs of 3G data is too much for their mobile phones.. Aren't we lacking good applications that want to make use of this bandwidth? Before coming across this post, I had just posted a question on Facebook to analyze statistics about how much of available bandwidth people are not using.. I have yet to get any results..

      My point is that the revolution is in progress.