India’s cloud end-user spending to grow by 35% in 2021: Gartner – Business Today

Reflecting a structural shift in operation of Indian businesses post-pandemic, the end-user spending on public cloud services in the country is forecast to grow by another 30 per cent in 2022, according to a report by the tech research and consulting firm, Gartner. It will be the fourth straight year of double-digit growth in this space.

The end-user cloud spending is estimated to grow by nearly 35 per cent as per the latest forecast, compared to around 31 per cent estimated in April.

The public cloud services in India is estimated to grow to $7.3 billion in 2022.

Public cloud services adoption has accelerated since the onset of the global pandemic. The pandemic was a tipping point for Indian businesses to realise the true value of public cloud, said Sid Nag, research vice president at Gartner.

In India, the policy infrastructure is emerging as an important contributor to public cloud growth. For example, the recently launched public cloud government initiatives Meghraj and Cloud Vision for India 2022 will prove useful for small and medium businesses or those who are in early stage of cloud adoption to benefit from this technology, he added.

The cloud computing service enables its user to hire or use software, storage, servers as per requirement instead of purchasing the entire system. With the growing adoption of new-age technologies such as Big Data, analytics, artificial intelligence (AI), and the Internet of Things (IoT), Indian cloud infrastructure market has seen a tremendous rise in demand.

Gartner said that initiatives targeted towards building a skilled cloud workforce in partnership with private IT service providers will contribute to the governments effort of strengthening the public cloud ecosystem in the country.

Business entities are increasingly migrating their data to the cloud space. The IT companies are investing heavily in the cloud business to cater to the accelerating demand across the globe. Wipro through its FullStride Cloud Services has committed an investment of $1 billion in cloud technologies, capabilities, acquisitions, and partnerships over the next three years and employs over 79,000 cloud professionals. Infosys through its one-year-old cloud platform Cobalt is offering 35,000 cloud assets and over 300 industry cloud solution blueprints.

Several start-ups in India too are driving the cloud adoption, and traditional businesses like education and retail are also migrating to cloud.

Indian CIOs are expected to focus their cloud investment on cloud system infrastructure services (IaaS). This segment is forecast to be a total of $2.4 billion by 2022, up 40 per cent from 2021. IaaS will make up 32.3 per cent of the total investments in public cloud services in 2022.

Public cloud growth continues to be driven by organisations that want to modernise their IT and reduce their capital expenditure spend, said Nag. He further added that the desire for agility and innovation in both business transformation and IT operations is also fueling the growth of public cloud.

The next step in the growth of cloud in India will be the adoption of cloud native technologies. Indian CIOs will look to reimagine and refashion their applications and workloads using containers and microservices as well as artificial intelligence (AI) and machine learning (ML), said Nag.

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India's cloud end-user spending to grow by 35% in 2021: Gartner - Business Today

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