India Cloud Market Stands At $860-912 Mn In CY11: Zinnov

Zinnov, a market expansion and globalisation advisory firm, has released a study to evaluate the public cloud opportunity in India, titled, “Public Cloud Opportunity in India”. The released study, pegged that the overall Indian market for cloud (both public and private) has grown steadily to reach approximately $860 - 912 million in CY11. Of the total pie, the study highlighted that the public cloud market comprises of 20- 22 percent of the share, while the remaining 78-80 percent is accounted by private cloud.

The public cloud market has rapidly evolved in the last 2 years in India with significant traction across SaaS, PaaS and IaaS, added the study. With the current market of $160-192 million in CY11, public cloud in India is at a very nascent state of the market and may not have hit the inflection point yet, indicating significant future potential.

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SaaS market in India is largely dominated by email, collaboration tools, CRM/ ERP and currently stands at $123-143 million for CY11. The SaaS market has grown at a CAGR of 46 percent from $56-67 million in CY09 until CY11.

The PaaS and IaaS markets in India on the other hand are rapidly growing, though from a small base, highlighted the study. The PaaS market in India is at $1.5-2.5 million in CY11, which has grown at a CAGR of 75 percent from $0.5-1.5 million in CY09. IaaS market in India on the other side stands at $38-47 million as in CY11. This segment has seen a promising growth of CAGR 84 percent from a market share of $11-14 million in CY09.

Praveen Bhadada, Director-Market Expansion, Zinnov Management Consulting, said, “Public cloud market is expected to grow at 55 percent CAGR in the near future and will become a default choice for new IT investments, especially in the SME segment. We will not be surprised, if cloud takes up more than 20 percent of the total Indian IT spend in the next couple of years. This would also mean that there will be a significant demand in the job market for cloud computing related skills.”

“Additionally, the huge global and domestic opportunity that exists in the cloud space, has excited a lot of Indian start-ups and in fact 20 percent of the total public cloud market in India is currently being addressed by Indian companies. Further to this, we have also witnessed that categories like SaaS and cloud computing, are being preferred for VC investments in India”, he added.

Drawing some analysis on the growth numbers, the study read that as a result of the demand and supply forces, the public cloud market opportunity could reach potentially reach $685 million by CY14.