Cloud market could witness boom in 2017 for Indian startups and enterprises

With legacy systems being replaced by cloud ones, biggest beneficiary could be cloud computing market

by | Jan 9, 2017 | Industry

The cloud market will take off, pushed by global and domestic initiatives. As businesses turn away from legacy systems to cloud-based ones, the biggest gainer would be the cloud domain and it would grow exponentially, building on the foundation laid in 2016. This comes against the background of increasingly greater number of organizations which continue to seek and pursue digital business strategies. It is also the direct consequence of enterprises wanting to improve performance as well as productivity over the long-term period. The development is fueled by businesses trying to shape applications suitable only for platforms such as the public cloud.

Let’s see how the shift is disrupting the IT industry and would prove to be the biggest disrupting force ever. Various studies point to unprecedented growth for cloud service providers. According to Gartner, the public cloud market in India would grow by 35.9% in 2016 to $1.3 billion.

“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. 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,” added Nag.

Cloud services carrying forward the momentum gained in 2016

Driven by infrastructure development and huge expansion in the Internet’s reach, along with policy initiatives such as Digital India, the cloud IT segment is riding on a wave of upsurge, particularly looking at the booming Indian startup scene. The sector is only carrying forward the immense momentum gained in 2016 and the sector is expected to continue on the high-growth trajectory. The developments and predictions are in tune with most other signals too. According to a study by Deskera, a global cloud-based software provider, the Indian public Cloud market could reach $1.75 billion by the year 2017.

The development augurs well for the IT industry, particularly as startups and enterprises explore ways to cut costs, enhance bottom lines and make data security of paramount importance. The development also augurs well for application developers since the cloud provides lots of room for innovation, while at the same time cutting the cost of doing business.

As the software sector matures and competition in business increases, many experts predict even greater adoption and expansion than predicted, particularly as startups and enterprises expand digital platform strategy as part of cloud adoption. As SMEs and startups get increasingly tech-savvy and the Internet spreads wings through smartphones, cloud services are bound to receive more fillip.

Top technology firms including Microsoft and IBM are eyeing the Indian market

Global tech companies are closely watching the rapidly expanding Indian market as they reaped rich dividends from investments in the sector in the past. Amazon Web Services (AWS) and Microsoft have consolidated presence in the Indian market and established data centers in the country: one more proof of the sector’s growing reach. According to reports, Alibaba is also planning to expand its cloud profile by opening new data centers in India. In fact, Microsoft’s cloud business has seen a growth of 120%.

As the number of customers for cloud services increases and Indian infrastructure develops and comes at par with global standards, the only way forward for enterprises and startups is to adopt a cloud digital strategy.

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