Domestic cloud computing mkt to touch $16 bn

The Indian cloud computing market opportunity is expected to reach $16 billion by 2020, a study said here today.

The global cloud computing market was projected to grow at 33% compounded annual growth rate and reach $680 billion by 2020 while the domestic market opportunity might touch $16 billion in the same period.

About two-third of this would be ‘new-business’ and the rest would come from existing service lines, said the study titled, 'Deconstructing the 'CLOUD: The New Growth Frontier for Indian IT-BPO Sector', brought out by Nasscom in association with Deloitte.

Cloud computing can be defined as "dynamically scalable, virtualised information services delivered on-demand over the network in a pay-per-use model". Cloud morphs client-server environment on to internet. It would enable businesses to rent compute resources and pay per use.

Launching the report on the sidelines of Nasscom Infrastructure Management Services Summit here, Nasscom President Som Mittal said Cloud computing was reshaping the Indian IT market by generating new opportunities for IT providers and driving changes in traditional IT offerings.

"There are ample opportunities for cloud in every industry, and with the increased preference of cloud adoption in the coming years, industry will have to invest in competency building internally to take advantage of cloud computing technologies," he said.

According to the study, cloud computing is expected to have a significant impact on current IT-BPO services industry, in terms of types of services offered, delivery mechanisms and business models.

Mittal said while security is one of major hindrances toward cloud adoption, policies need to be created and designed to help enterprises establish and execute a comprehensive security strategy that addresses threats and potential liabilities resulting from cloud computing.

"India will definitely have a leadership position in the cloud market in times to come," he said.