Cloud services market in India to surpass $326 mn: Gartner

The public cloud services market in India is forecast to grow 32.4 per cent this year and is expected to touch $326.2 million, said a study by research and advisory company Gartner. The firm also said that the worldwide public cloud services revenue is on pace to total $111 billion in 2012.

“The cloud services market is clearly a high-growth sector within the overall IT marketplace,” Ed Anderson, Research Director, Gartner, said.

SaaS or 'Software as a service' would be the largest segment and is expected to grow and touch about $115.6 million, meanwhile the infrastructure as a service (IaaS) segment would grow 21.3 per cent in 2012 to $42.7 million from $35.2 million a year ago. 

“The key to taking advantage of the growth will be understanding the nuances of the opportunity within service segments and geographic regions, and then prioritising investments in line with the opportunities,” he added.

According to the analyst business process services also known as BpaaS would be the next-largest segment primarily due to the inclusion of cloud advertising as a subsegment. The segment is expected to grow $112.1 million this year, from $90.3 million in 2011.

By 2016, cloud compute services will become the largest single segment within the public cloud services market in India growing to $140.8 million, and accounting for about 14 per cent of the total public cloud services spending.

Growth in application infrastructure services (PaaS) will also be high, although it is a smaller market relative to the other segments. The PaaS segment is forecast to grow to $15.7 million in 2012, it said.

“The high growth rates will occur in emerging markets, including in the top three growth countries of India, Indonesia and China. However, 81 percent of spending increases will come from North America and Western Europe. For cloud services providers, this will require a strategic approach in both high-volume and high-growth markets. Both will be important in the development of sustained, global strategies,” Gartner added.