Growing adoption of big Data, analytics and artificial intelligence to push India's cloud market to $7 bn by 2022: Nasscom

The report titled 'Cloud – Next Wave of Growth in India', said cloud spending in 2018 was estimated to be about six percent of the total IT spending

Press Trust of India April 02, 2019 18:32:07 IST
Growing adoption of big Data, analytics and artificial intelligence to push India's cloud market to $7 bn by 2022: Nasscom
  • Infrastructure as a service spending was estimated to be about $1 billion in 2018, and is forecast to grow at 25 percent per annum

  • Factors that can drive the IaaS uptake in India are improved infrastructure, economic benefits and increased innovation

  • Globally, the cloud spending on IT is growing at 16.5 percent (CAGR) and is expected to touch $345 billion by 2022

New Delhi: Growing adoption of Big Data, analytics, artificial intelligence and Internet of Things is expected to push cloud market in India to grow 3-fold to $7.1 billion by 2022, a report by Nasscom said Tuesday.

The report titled 'Cloud – Next Wave of Growth in India', prepared with Google Cloud and Deloitte Touche Tohmatsu India LLP, said cloud spending in 2018 was estimated to be about six percent of the total IT spending.

Indian infrastructure as a service (IaaS) spending was estimated to be about $1 billion in 2018, and is forecast to grow at 25 percent per annum to reach $2.3–2.4 billion in 2022.

Factors that can drive the IaaS uptake in India are improved infrastructure, economic benefits, increased innovation, vibrant startup and connected ecosystem, the report said.

The Indian software as a service (SaaS) market, on the other hand, is expected to grow at 36 percent per annum and touch $3.3-3.4 billion by 2022. This boost is expected on the back of lower cost of workforce, abundant talent availability, mature sales eco-system, adoption of newer technologies like AI and machine learning to build products.

Growing adoption of big Data analytics and artificial intelligence to push Indias cloud market to 7 bn by 2022 Nasscom

Representational image. Reuters.

Globally, the cloud spending on IT is growing at 16.5 percent (CAGR) and is expected to touch $345 billion by 2022.

To accelerate the cloud growth momentum in India in the right strategic direction, the report recommended that the Indian government set out tangible time-bound targets for cloud and a sharper focus on the multitude of other infrastructural and operational factors (reliable power, sustainable land regulations, and high-speed connectivity).

"India's cloud computing market is poised for growth and, the technology is increasingly being embraced across businesses as well as consumers. Complementing the ecosystem are the futuristic technologies such as AI, ML, advanced analytics and immersive media that are aiding in the seamless adoption of SaaS, IaaS and PaaS offerings," Nasscom President Debjani Ghosh said.

She added that to bolster India's cloud market story, there is a need to exercise innovation.

"Innovation to reduce the cost of services and thus, wider usage of the cloud. This report will be a ready reckoner for all to understand the imminent need for Cloud and the underlying opportunities," Ghosh said.

Updated Date:

also read

Cyborgs v ‘holdout humans’: What our species will look like if we survive a million years
World

Cyborgs v ‘holdout humans’: What our species will look like if we survive a million years

After a million years, man may become extinct, split into several species, or evolve. Future technologies such as human enhancement, brain emulation, and artificial intelligence (AI) may result in technological forms of new species that have not previously been observed in biology

Meta's AI demo pulled offline after testers used it to write racist and inaccurate scientific literature 
News & Analysis

Meta's AI demo pulled offline after testers used it to write racist and inaccurate scientific literature 

Users testing Meta's Galactica were able to generate false, inaccurate and racist scientific literature using basic prompts. Meta was forced to pull the service down to work on it.

Technology no longer agnostic, has strong political connotation: EAM Jaishankar
India

Technology no longer agnostic, has strong political connotation: EAM Jaishankar

'The rise of India is deeply linked to the rise of Indian technology. It could be semiconductors, it could be 5G, artificial intelligence, commercial space launches,' he said