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'India's cloud market to cross $7 bn by 2022'

Indias cloud market to cross $7 bn 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 USD 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 per cent of the total IT spending.

Indian infrastructure as a service (IaaS) spending was estimated to be about USD 1 billion in 2018, and is forecast to grow at 25 per cent per annum to reach USD 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 per cent per annum and touch USD 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.

Globally, the cloud spending on IT is growing at 16.5 per cent (CAGR) and is expected to touch USD 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).

Agencies

Agencies

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