India public cloud services to hit $556M

India public cloud services to hit $556M

Summary: Country's public cloud services are projected to generate US$556.8 million in revenue this year, with software-as-a-service accounting for the largest share at US$220 million.

TOPICS: Cloud, India

India's public cloud services are expected to be worth almost US$556.7 million by the end of the year, with software-as-a-service (SaaS) accounting for the biggest segment. 

The overall market will climb 32.2 percent this year to generate US$556.8 million in revenue, up from US$421 million last year, projected research firm Gartner. SaaS spending will grow 33.2 percent year-on-year to reach US$220 million, accounting for the largest cloud services segment in the country. 

Infrastructure-as-a-service (IaaS) is expected to be the second-largest, generating US$78 million in revenue compared to US$58 million in 2013, followed by business process-as-a-service (BPaaS) which will expand to US$75 million from US$62.3 million last year. 

"Growth of cloud services in India reflects the demand for new sourcing models," Ed Anderson, Gartner's research vice president said in a statement. "We expect high growth rates across all cloud services market segments in India."

The SaaS market segment is projected to continue its growth momentum to hit US$636 million in 2018, followed by IaaS at US$317 million, and BPaaS at US$204 million. 

India's overall public cloud services market will reach US$1.7 billion in 2018, according to Gartner. 

In an interview this week with The Times of India, Microsoft's corporate vice president for the enterprise and partner group, Susan Hauser, said enterprises in the country were looking at cloud as a catalyst for business transformation. She said the IT vendor was seeing significant growth in India, where growth rate for its Azure cloud services was higher than its global average of 200 percent.

Topics: Cloud, India


Eileen Yu began covering the IT industry when Asynchronous Transfer Mode was still hip and e-commerce was the new buzzword. Currently a freelance blogger and content specialist based in Singapore, she has over 16 years of industry experience with various publications including ZDNet, IDG, and Singapore Press Holdings.

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  • What about telecom infrastructure?

    I am just back from India where I spent 2 weeks with a local company in Gujarat state.

    I strongly believe in the SaaS services opportunities in India since as a emerging and fast growing economy, Indian companies need flexible, immediately available and cost-effective secured and professional solutions. And SaaS solutions are very goot at it.

    BUT i feel that there might be an issue with poor telecom infrastructure, both in terms of bandwith or network coverage to get access to Internet. Have you got some data about it? What is your feeling about this issue that could prevent Indian companies from using SaaS services?

    Mathieu Destrian
    CEO of Intellinium