Cloud services spends in India to reach $1.3 billion in 2016

Indian companies are expected to spend $1.3 billion on cloud-based services this year, Gartner said. 

“The overall global public cloud market will mature, and its growth rate will slightly slow down from 17.2% in 2016 to a 15.2% increase in 2020,” said Sid Nag, research director at Gartner. “While Brexit and other growth challenges exist, some segments such as financial SaaS applications and the PaaS user markets will still see strong growth through 2020.”
 
The highest growth will come from cloud system infrastructure services (infrastructure as a service [IaaS]), which is projected to grow 45.5% in 2016, followed by platform as a service (PaaS), at 33.5%.

Indian Cloud Services Forecast (US Dollar Million)

IaaS in 2016 is expected to grow to $485 million from $333 million last year, and is expected to by nearly 50% next year to $721 million. Spends on cloud application services, which comes in next, is expected to grow to $395 million in 2016 is expected to grow by 33% in 2017 to $524 million.

The other cloud based services include cloud business process services, cloud management and security services and cloud advertising. Cloud advertising spends in India itself is expected to grow to $123 million by the end of 2016 and would increase by 28.4% to $158 million.

“As buyers intensify and increase IaaS activity, they will be getting more for their investment: ongoing enhancement of performance, more memory, more storage for the same money (which will drive increases in consumptions) and increased automation in traditional IT outsourcing (ITO) delivery,” said Nag.