Public cloud services to touch $838 mn by end of 2015

Public cloud services revenue in India will reach $838 million by the end of 2015, an increase of almost 33%, or $206 million over 2014 revenue of $632 million, says Gartner, a research and advisory firm.

In 2015, public cloud services revenue will be driven by high rates of growth in key market segments, cloud infrastructure as a service (IaaS), cloud management and security services and cloud application infrastructure platform as a service (PaaS).

Spending on IaaS will total $104.8 million in 2015, an increase of 38% over last year. Spending on cloud management/security and PaaS will both grow 35.4% to $56.7 and $84.6 million respectively during the same period.

Gartner predicts high rates of spending on cloud services in India to continue through 2018 when the market is expected to reach $1.9 billion.

"Organisations in India seeking IT outsourcing services are increasingly turning to public cloud services as an alternative to traditional ITO offerings," said Ed Anderson, research vice president at Gartner. "In fact, cloud services are not only being used for low-value or transient workloads but also increasingly for production workloads, including some mission-critical initiatives."

According to Gartner's latest cloud adoption survey, 53% of organizations in India indicate they are using cloud services today, with another 43% indicating plans to begin using cloud services in the next 12 months.

"Business process as a service (BPaaS) is expected to grow from $130 million in 2014 to $351 million in 2018. SaaS is expected to grow from $246 million in 2014 to $707 million in 2018," said Fred Ng, senior research analyst at Gartner. "The growth of cloud services varies by country and specific cloud service type. The Indian market is unique in that demand is consistently high for all types of cloud services."