India: end-user spending on public cloud to grow 29% in 2021
During the Gartner IT Symposium/Xpo 2020 India, analysts discussed the opportunities for public cloud in India. At the event, it was forecasted that end-user spending on public cloud services in INdia will increase to US$4.1bn in 2021 - an increase of 29.4% from 2020.
“The onset of the pandemic was the starting point of the Cloud 2.0 era. Indian enterprises were not ready for the large scale of remote work. However, public cloud delivered on its promise of scalability, cost efficiency and business resilience for Indian enterprises during this critical time in 2020. As digitalisation efforts further evolve in the country, public cloud will become a must have technology for Indian enterprises,” commented Sid Nag, research vice president at Gartner.
In 2021, it is expected that spend on managed services and cloud infrastructure will equate to 8% of IT spend in India, with the low cost of entry provided by public cloud services being a big influence on CIOs to increase their spend.
While cloud application services (SaaS) is forecast to be the largest segment in the INdian market in 2021, cloud system infrastructure services (IaaS) is expected to experience the largest growth (44.6%).
“While end-user spending on cloud in India is increasing, there is a long road ahead for Indian enterprises to achieve the same market maturity as the U.S. or Europe. India-based organizations and their CIOs need to focus on the cultural shift that will make them cloud-ready and give them a competitive edge,” said Mr. Nag.