November 3, 2020
More than 60% of Indian organisations plan to leverage cloud as a platform for digital innovation as a result of COVID-19, according to IDC.
As building digital IT infrastructure supporting resilient operations and pervasive experiences becomes a key priority, organisations in India are re-strategising their IT spending plans. Accelerating investment in an agile cloud infrastructure is seen as a part of the solution to the challenges arising from the spread of the pandemic COVID-19. More than 60% of the Indian organisations plan to leverage cloud platforms for digital innovation based on IDC COVID-19 impact survey.
“Cloud continues to be the underpinning platform for all digital transformation initiatives and has therefore seen an acceleration in demand. Strategic investments in technology will become imperative to minimise the adverse impact and make businesses more resilient. The role of providers will become crucial in helping organisations flatten the curve and leverage cloud in their next normal,” said Rishu Sharma, Principal Analyst for Cloud & Artificial Intelligence at IDC India.
The India public cloud services (PCS) market is projected to touch $7.1 billion (€6.07 billion) by 2024 growing at a CAGR of 20.3% between 2019-2024. Cloud serves as a foundation to modernise IT and businesses by providing flexibility, scalability, and agility. Although most organisations in India have adopted cloud at some stage, the current pandemic situation has now enabled organisations to spend more on public cloud infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) solutions, and software-as-a-service (SaaS).
From a segment perspective, SaaS forms the largest component of the overall public cloud services market in India, followed by IaaS and PaaS. With the changing strategy, over 56% of the Indian organisations plan to increase their spend on SaaS services, as a result of COVID-19. In 2019, the top two providers in the SaaS segment accounted for nearly 52% of the total SaaS market. In the IaaS segment, the top two providers accounted for over 78% in 2019.
“COVID-19 significantly impacted organisations looking at cloud for business continuity and gaining resiliency. Organisations are planning to leverage cloud for digital innovation and accessing innovative ecosystems, in addition to gaining flexibility and meeting up additional demands,” said Swapnil Shende, Senior Market Analyst for Artificial Intelligence at IDC India.
The above analysis has been published in a new IDC report, ‘Market Analysis Perspective: India Cloud, 2020 ’, that examines the state of the India cloud market focusing on aspects including the overall size of the public cloud market in India, the forecasted growth, organisations’ plans, leading players across segments, and how organisations will be leveraging cloud transitioning to the next normal.
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