Cloud Investments To Account For 5% Of IT Investments In India

Zinnov Management Consulting has announced the launch of a study conducted on the Indian Cloud market, bringing in CIOs perspective into the picture and their valued opinion on cloud as a business tool. The study titled, “Cloud Opportunities in India – A CIO’s Perspective,” highlights aspects like the various cloud opportunities existing in India currently and how the market is poised to grow in the years to come, a perspective on the various aspects related to its adoption from a CIO’s perspective.

The study reveals that over 60% of CIOs surveyed believe that their IT budgets will surely grow next year and that fact that a one stop shop for all cloud service would help accelerate the adoption as well as help standardise different workloads.

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The study brought into light the fact as to how a large number of Indian CIOs today are now willing to leverage cloud services and have in fact already started evaluating it. It read that the domestic IT spend in India has been growing at a significant pace and is dominated by BFSI, Telecom, Government, Manufacturing & Energy verticals. It further added that Indian enterprises are already starting to show signs of steep recovery with respect to their IT spending; however, the IT spend in the country as percentage of revenue (1-3%) is still lower as compared to some of the developed economies of US and Europe (3-4%).

Speaking about the study Pari Natarajan, Chief Executive Officer, Zinnov Management Consulting said, “The next wave of transformation in the Indian IT industry is ‘Cloud Computing’. This is indeed a perfect storm. The only difference is that this storm is destructive only to companies who are not willing to change, while it is a huge opportunity for others.”

“SaaS adoption would continue to grow at a rapid pace in India over the next 5 years and business process as a service is expected to grow rapidly in the SMB segment. Governments’ continued focus on e-governance will also drive significant adoption of cloud pan in the country,” he added.

The study also reveals that the emergence of large number of new enterprises in verticals such as Microfinance, Healthcare, and Organised Retail etc. has resulted in an increased IT spends of these verticals. IT spend as percentage of revenues has been observed to be the highest in the telecom space with an average of 3-4%.

Speaking about the Indian Cloud market and findings of the study Praveen Bhadada, Manager-Consulting, Zinnov Management Consulting said, “Although Indian businesses are adopting cloud computing, it’s still is in a nascent stage; however, the signs of its adoption and growth are surely positive. Our perception analysis conducted with CIOs has validated the fact that India is now ready for that sea change with Cloud Computing as the mode. The good news is also that that, CIOs have started looking towards Cloud computing as a means to reduce the ever increasing IT budgets. Public cloud alone holds a potential of USD 1 billion by 2015, a rapid 10 fold growth in 5 years."

The study also highlights that government projects also hold huge potential for Cloud technologies. Increasing awareness regarding Right to Information in the public is compelling the government to digitise its databases and make more and more information available to the public domain. For financial inclusion, the government has committed itself to provide banking services by using information and communication technology to 73000 rural habitations in the country having a population of over 2000 by March 2012.