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India’s Public Cloud Revenue to grow up to 37.5% in 2018: Gartner

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India’s Public Cloud Revenue to grow up to 37.5% in 2018: Gartner

In a recent report issued by Gartner, India’s public cloud revenue is set to rise to 37.5% in 2018 which makes a total of US$2.5 billion, much more than US$1.8 billion which was in 2017.

Sid Nag, Research Director at Gartner, has also shared that although the public cloud revenue market in India is going to highly ascend in 2018, due to maturing market, the growth rate will stand stagnant.

In 2018, Gartner estimates the fastest-growing segment of the public cloud market will be infrastructure as a service (IaaS). IaaS in India is forecast to total US$1 billion, an increase of 46 percent from 2017 (see Table 1). This growth is being driven by organizations refraining from pursuing data center build-outs and consolidation among data center vendors.

“While IaaS enables efficiencies and cost benefits, organizations need to be cautious about IaaS providers potentially gaining unchecked influence over customers and the market,” said Mr. Nag. “In response to multicloud adoption trends, organizations in India are also increasingly demanding a simpler way to move workloads, applications and data, across cloud providers’ IaaS offerings without penalties.”

In regions such as India, pricing will be a major factor in organizations’ decision making and selection of public cloud providers. “This means that some providers will be at risk if they fail to align their pricing,” Mr. Nag added.

Table 1. India Public Cloud Service Revenue Forecast, 2017-2019 (Billions of U.S. Dollars)

Segment 2017 2018 2019
Business Process as a Service (BPaaS) 102 129 155
Platform as a Service (PaaS) 143 191 243
Software as a Service (SaaS) 694 932 1,179
Cloud Management and Security Services 157 201 249
Infrastructure as a Service (IaaS) 693 1,008 1,364
Total 1,789 2,461 3,190

Note: Totals may not add up due to rounding. The forecast also excludes cloud advertising, which was removed from Gartner’s public cloud service forecast segments in 2017.

Source: Gartner (May 2018)

Software as a service (SaaS) remains the largest segment of the public cloud market in India, with revenue expected to reach US$932 million in 2018, an increase of 34 percent year over year.

“Organizations continue the move toward applications and workloads to the cloud locally, as opposed to running them on-premises. Today, SaaS users are increasingly demanding more purpose-built offerings engineered to deliver specific business outcomes,” said Mr. Nag.

Within the platform as a service (PaaS) category, database PaaS (dbPaaS) is set to be the fastest-growing segment over the next four years. The dbPaas segment is on pace to total US$32 million in 2018, an increase of 50 percent from 2017. Gartner expects the segment to reach almost US$113 million by 2022. This presents a great opportunity for hyperscale cloud providers to include dbPaaS in their service offerings to grow their user numbers.

The rapid growth of dbPaaS is indicative of organizations in India moving away from traditional on-premises, license-based database consumption models to cloud-based “as a service” models, which are generally more price-competitive.

An MBA who switched working from managing a retail chain to knit a brighter world of writing. Diligent and assertive, Prachi has a Bachelor's degree in Computer Applications.

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