Public cloud share at 66%
The cloud infrastructure market in India is estimated to expand at a compound annual growth rate CAGR of ~23.61% during 2019-2024, reaching a value of Rs.196.46 billion by the end of forecast period, said a market report.
Cloud infrastructure refers to the backend components (servers, network devices, Ethernet switches, and storage) that supports cloud computing services.
Businesses across all industries are leveraging the benefits of cloud infrastructure to enhance efficiency, reduce server and storage costs, and incorporate flexible work practices.
Based on the deployment type, public cloud held over 66% of the total market share in 2019, said the “Cloud Infrastructure Market in India 2019” report by ResearchAndMarkets.
The growing adoption of new-age technologies such as Big Data, analytics, artificial intelligence (AI), and the Internet of Things (IoT), along with favourable government initiatives are propelling the growth of the Indian cloud infrastructure market, said the report released 21 Feb 2020.
Government initiatives such as DigiLocker, MeghRaj, and Cloud vision for India 2022, among others, have supported the growth of the cloud infrastructure market and established India as a global hub for cloud computing, content delivery, and data communication services.
According to a study conducted by StartupBlink, global start-up ecosystem map and research center, India has moved its position at 37 in 2018 to 17 in the Startup Ecosystem Ranking for 2019.
Owing to support from the government’s Startup India Initiative, availability of skilled IT personnel, and easy access to government funds, India has become a popular destination for start-ups.
In the Indian cloud ecosystem, start-up companies act cloud service consumers, like Ola Cabs, OYO Hotels and Homes, Bigbasket, as well as cloud service providers, such as Practo, Knowlarity Communications, and Freshdesk, among others.
Hence, the increasing number of start-ups are driving cloud adoption, which as a result is driving the growth of the cloud infrastructure market.
Emerging technologies, especially IoT and AI has enabled growth in the cloud market in India, said the report.
Cloud computing is the principal force that enables companies to tap into AI capabilities.
Using cloud infrastructure, companies store, manage, and analyze the massive amount of data that are required for AI applications.
Similarly, IoT connected devices including connected cars, and smart home appliances use cloud-based infrastructure to communicate and store information. Thus, this symbiotic relationship between IoT, AI, and cloud infrastructure is anticipated to propel the market growth.
Over the past few years, India has been witnessing a significant increase in cybercrime and data breaches. Concern regarding managing sensitive and confidential information has restrained many enterprises to opt for cloud-based services. Consequently, data security and privacy remain the key challenge limiting the growth of the market.
Competitive insights:
India’s cloud infrastructure market is highly fragmented that is proliferated by both global players, like Amazon and IBM, and domestic players like Tata Consultancy Services and Wipro.
Companies are expanding their target market by investing in setting up new data centers and upgrading their existing data centers in India.
Moreover, owing to the importance in understanding customer requirements and ease of deployment process, the role of channel partners (Cognizant, Mindtree) in the cloud ecosystem is also rising.
Players in the industry are Apple India Private Limited, Fitbit India Private Limited, Fossil India Private Limited, Garmin India Private Limited, Google India Private Limited, GOQii Technologies Private Limited, Huawei India Private Limited, Samsung India Electronics Private Limited, Titan Company Limited and Xiaomi Technology India Private Limited. fiinews.com
