End-user spending on public cloud services in India is forecast to total $3.4 billion in 2020, a 25% increase from 2019, according to Gartner, Inc. This double-digit growth will position India as the No. 3 country for end-user spending on public cloud services. China and Indonesia will be the countries with the highest growth rates in end-user spending on public cloud services in 2020.
“Moving to the cloud and investing in public cloud services have become imperative to the success of digital business initiatives. It’s no longer a question of ‘why,’ but a matter of ‘when’ organizations can shift to the cloud,” said Sid Nag, Research Vice President at Gartner, “We have entered the cloud 2.0 era, where organizations are adopting a cloudfirst or a cloud-only strategy.”
Cloud application services (SaaS) remains the segment where end-user organizations in India will spend the most and will represent 42% of overall public cloud services end-user spending in 2020. End-user spending on SaaS cloud application services in India will total $1.4 billion in 2020, an increase of more than 21% year over year.
Organizations are moving their legacy applications to SaaS because it provides them with the flexibility of subscription-based consumption, in contrast to expensive license-based on-premises consumption models. “SaaS adoption is associated with a lower cost of entry, which is one of the reasons for the high investment in this segment in India, which is a price-sensitive market,” said Sid Nag.
The next wave of changes that Indian CIOs foresee is consolidation in the cloud services market. “The disinvestment in data centres by small and niche cloud service providers has increased the opportunities for hyperscale vendors, such as Amazon Web Services, Microsoft and Alibaba, to disrupt the cloud infrastructure services market rapidly,” said Sid Nag.
Market leaders such as Google, Amazon, Microsoft, Alibaba and IBM currently dominate global cloud infrastructure services market, and will retain the lead as the market grows.
Gartner predicts that, by 2021, 90% of global enterprise customers using cloud IaaS will take a multicloud approach. “Multicloud and hybrid approaches are becoming inherent to cloud adoption. Organizations want to take full advantage of best-of-breed solutions, and are therefore working with one or more cloud service providers,” added Sid Nag.
Gartner clients can read more in the report “Forecast: Public Cloud Services, Worldwide, 2017-2023, 3Q19 Update”
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