CLOUD SERVICE MARKET INDIA

Presented By – Mohsin Baig

Table of Content

Executive SummaryMarket SegmentationMarket TrendMarket Drivers/RestraintsMarket OpportunityRecent Market DevelopmentsReferences

EXECUTIVE SUMMARYThe cloud services market in India is growing at a potential rate with the increase in cloud spending by the public as well private sector.  The market growth is primary fuelled by the regional government initiative for modernization of existing IT infrastructure to offer uninterrupted and enhanced quality of service.  Additionally, the cloud services are witnessing major demand from the mid-size organization due to the benefits such as reduced up-front investments, optimization of implementation cycles, and the capability to eradicate IT distractions.  The market growth is not only driven by mid-size organizations, large enterprises are also investing for quality of service assurance, optimization of IT cost, scalability, and time-to-market.

Today the competition in the market is quite low, but in years come to with increase in number of cloud based service providers will force the market players to keep up their competitive pricing. This would eventually stimulate the demand for the services and increase the rate of adoption.

The global cloud services providers are looking at Indian market in terms of platform for investment in return of equity from start-ups.

CLOUD SERVICE MARKET SEGMENTATIONThe cloud services market can be segmented on the basis of cloud services type and cloud service models

Cloud

Services

Type

• Infrastructure-as-a-Service (IaaS)

• Platform-as-a-Service (PaaS)

• Software-as-a-Service (SaaS)

• Business Process-as-a-Service (BPaas)

• Cloud Advertisement Service

• Cloud Security Service

Cloud

Service

Models

• Pub

lic

Clo

ud

• Priv

ate

Clo

ud

• Hy

bri

d

Clo

ud

CLOUD SERVICE MARKET INDIA

2014 2015 -

500

1,000

1,500

2,000

2,500

3,000

515 726

1,825

2,574

Public Cloud

Private Cloud

Tota

l Mar

ket (

USD

Mill

ion)

2014 2015 -

100

200

300

400

500

600

13 23

383

559

293

539

PaaSSaaS

IaaS

Tota

l Mar

ket (

USD

Milli

on)

The cloud services market in India will to reach USD 3.3 billion by the end of 2015; an growth of ~41% or USD 0.96 billion over 2014 revenue of USD 2.34 billion.

While private cloud hold the major market share i.e. 78% of overall revenue; the public cloud is estimated to witness highest CAGR in next 5 years.

Of the three major cloud services the SaaS market witness the highest revenue share in 2015; but the spending on IaaS increased by 38% as compared to past year.

The explosive growth of IaaS and SaaS in the India market is an indication that enterprises in India are moving away from building their own on premises infrastructure, as well as migrating from the traditional software licensing model, to a SaaS model served up by cloud providers.

Data security and privacy issue

Complexity in integration of cloud system with existing legacy

system

High initial cost of deployment

Lack of skillful resources

SLA, reliability and business continuity

Increasing demand for optimization and digitization of existing IT infrastructure and

automation

Public and private partnership model

Reduction in the IT cost

Increasing usage of internet, e-commerce, mobile devices, and application boosting the cloud

services market in India

Global cloud service providers targeting the start-ups in India

Increasing use of BYOD in Indian organizations

DRIVERS

RESTRAINTS

MARKET DRIVING/RESTRAING FACTORS

MARKET OPPORTUNITY Current e-governance initiatives driving on a public-private partnership (PPP) model, immense investments are being made on the IT infrastructure front

The market is expected to witness potential investment in the cloud sector mostly driven by the data center modernization initiatives

The regional government initiatives to improvise IT infrastructure and expansion of internet accessibility is attracting the global cloud services provider to cater the Indian market

The major opportunity for the cloud services expansion are identified in pharmaceuticals, healthcare, consumer goods and financial services sectors

The public cloud services are expected to have potential CAGR over next 5 years in Indian market

Social, Mobility, Analytics and Cloud (SMAC) are collectively expected to offer a USD 1 trillion opportunity. Cloud represents the largest opportunity under SMAC

Growing inclination toward IoT technology and associated services

IaaS PaaS SaaS BPaaS Private Cloud Don’t No0%

10%

20%

30%

40%

50%

60%

70%

58%

37%

19%

9% 9%

21%

Willingness to use Cloud Service -2015

Sample Size=100

RECENT MARKET DEVELOPMENTSUS-based Callidus Software Inc, cloud-based sales, marketing, learning and customer experience solutions provider, has opened its center in Hyderabad and also launched its ‘The Lead to Money’ suite in Indian markets. e

Microsoft Corp also launched local data centre in India in September, offering its Azure cloud services and commercial Office 365 services to attract local government and businesses.

Cloud services provider Amazon Internet Services Pvt. Ltd is looking at securing government contracts as well as initiate further price cuts going forward as spending on cloud gains pace in India.

Oracle announced $400 million worth of investments in the technology hub Bengaluru, with announcing the first “Oracle Start-up Cloud Accelerator” in the city.

HCL to shut down four data centres in India, to move towards cloud platform. The company aims to become a $10 billion company by 2020, total IT investment on SMAC will go up significantly and Cloud gives tremendous flexibility for scaling up.

 Oracle today introduced the broadest array of Infrastructure-as-a-Service (IaaS) offerings in the industry, which include bare metal cloud servers that are 11.5X faster and 20 percent cheaper than the fastest solution offered by the competition

Snapdeal, one of the top three e-commerce sites in India, has announced the launch of its own private cloud platform, Snapdeal Cirru to manage projected growth in traffic and site usage, as well as to improve speed and security across the site.

Government of India has adopted an ambitious initiative , GI Cloud also called as ‘MeghRaj’. The architectural vision of GI Cloud encompasses a set of discrete cloud computing environments spread across multiple locations.

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