Gartner Says Public Cloud Services in India Forecast to Reach $1.3 Billion in 2016

The public cloud services market in India is on pace to grow 35.9 percent in 2016 to total $1.3 billion, according to Gartner, Inc. The highest growth will come from cloud system infrastructure services (infrastructure as a service [IaaS]), which is projected to grow 45.5 percent in 2016, followed by platform as a service (PaaS) projected to grow 33.5 percent (see Table 1).

"The overall global public cloud market will mature, and its growth rate will slightly slow down from 17.2 percent in 2016 to a 15.2 percent 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."

Table 1. India Public Cloud Services Forecast (Millions of U.S. Dollars)

2015 2016 2017 2018 2019 2020Cloud Business Process Services (BPaaS) 71 87 112 144 186 239Cloud Application Services (SaaS) 297 395 524 671 819 1,000Cloud Application Infrastructure Services (PaaS) 80 107 140 181 229 286Cloud System Infrastructure Services (IaaS) 333 485 721 1,045 1,464 2,016Cloud Management and Security Services 80 104 134 168 206 249Cloud Advertising 96 123 158 189 223 266Total 957 1,301 1,790 2,398 3,126 4,055

Source: Gartner (November 2016)

"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 Mr. Nag.

"As PaaS offerings mature and the competitive landscapes consolidates, we predict that more organizations will consider expanding their PaaS adoption as an important component to their cloud strategy, and specifically to their SaaS deployments," added Mr. Nag.

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