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There is a Significant Shift Happening in Terms of Perception

DD Mishra, Research Director, Gartner, spoke to Amit Singh on the adoption trends in public and private cloud and how ISVs are building the growth story of cloud in India

How is the India cloud market shaping up?

As per cloud services end-user spending forecast, public cloud market in India will touch $1.93 billion by the end of 2017. It is currently growing at a rate of 43 percent during 2017, which will gradually slow down as the size increases but will be somewhere between 35-24 percent for the next 3 years. IaaS holds the majority share in the spending with close to $700 million followed by SaaS which will be $651 million by the end of 2017.

DD Mishra
DD Mishra, Research Director, Gartner

As per the Gartner cloud forecast for the second quarter of 2017, end-user spending on cloud services in India will reach $5.3 billion by 2021 and will continue to be dominated by IaaS, which will hold more than 40 percent share of the spending.

Traditional data center outsourcing and infrastructure utility services market will grow up to $637 million by end of 2017 and will have modest growth to $857 million by 2021, mainly driven by fast infrastructure utility services growth of around 20 percent in next few years.

By 2021, the public cloud IaaS spend in India will exceed the sum end-user spending on data center outsourcing services, infrastructure utility services and hosting/co-location services.

How is public cloud fairing in the overall cloud services space? How has the perception changed towards public cloud in the last 2-3 years?

We see a significant shift towards the adoption of public cloud. Even for critical workloads some customers are ready to try public cloud. The trust has gone up for sure and concerns have reduced as cloud is gaining more maturity. In India, we see that the adoption was previously driven by mid-market organizations but we now see that large enterprises are also adopting public cloud. So there is a shift happening in terms of perception.

What are the adoption trends around private and hybrid cloud?

Many of the customers we are talking to are open to explore private cloud and they are either already building a strategy or have already made progress in this direction.

As the business is changing fast, customers will eventually have to come out of the mindset of keeping everything under their control and move to more dynamic models. You cannot have a dynamically changing business with a static or slow moving infrastructure deployment. We need to keep pace with the changes in internal and external environments. This fundamental shift is being increasingly felt by many businesses in India.

How do you see the Indian ISV space and how are they supporting the growth of cloud computing in India?

There are many ISVs who have come up with innovative offerings. In order to succeed, they need to be part of the ecosystem as the market has become more complex and being innovative does not always guarantee success unless you have built an ecosystem of partnerships to be able to drive the outcome rather than a point solution.

ISVs can drive SaaS growth by their products, platforms and services around it. Cloud providers will need value added services around their cloud offerings. ISVs can complement cloud providers to help leverage the opportunities. It will also generate potential for some to reach out to wider market as cloud enables growth of IT Services and makes it affordable to a wider base, but it will also cause demise for some who fail to understand the change and leverage it.

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