India's public cloud services market to touch $10.8 billion by 2025: IDC report

The revenue of public cloud service market in India -- which includes Infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) solutions, and software-as-a-service (SaaS) -- stood at $2.2 billion for the first half of 2021 (January-June), according to a report from the global analytics firm International Data Corporation (IDC). The overall Indian public cloud services market is expected to reach $10.8 billion by 2025, growing at a CAGR of 24.1 per cent for 2020-25, the report said.

"Cloud continues to be the foundational pillar for innovation, collaboration, and digital transformation and is witnessing an accelerated adoption by enterprises in India. Organisations in India cite increased investment plans for cloud infrastructure and platforms in the coming 12 months to aid in faster and more effective ways of application development and access to technologies. Additionally, cloud-native services are becoming crucial for enabling new architectures and functionalities," Rishu Sharma, Associate Research Director, Cloud and Artificial Intelligence, IDC India said in a statement.

SaaS continued to be the largest component of the overall public cloud services market, followed by IaaS and PaaS during H1, 2021. Public cloud spending continued to increase among enterprises, with the top two service providers holding more than 49 per cent of the Indian public cloud services market.

The impact of the COVID-19 pandemic continued to be the key driver of cloud adoption in 1H2021, as enterprises remained bullish on their investments in cloud infrastructure, platforms, and software to improve the resiliency of their business operations. Apart from large enterprises, small and medium businesses also continued to witness a significant increase in public cloud adoption due to the demand for cloud-based applications for collaboration, Enterprise Resource Management (ERM), Customer Relationship Management (CRM), and security.

"The accelerated adoption of public cloud is expected to continue in the upcoming years as enterprises expedite their digital transformation initiatives by increasingly leveraging emerging technologies, with public cloud being the bedrock, to improve business resiliency and deliver enhanced customer experience. With many businesses expected to transition to a hybrid work model in the upcoming months, this would result in an increase in public cloud investments due to the demand for remote compute and storage, conferencing and collaboration applications, VDI, cloud security, etc.," Harish Krishnakumar, Senior Market Analyst, IDC India said.

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