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Cloud: A significant growth opportunity for India

Cloud: A significant growth opportunity for India

India’s IT landscape is transforming at a better pace by many promising developments in the field of cloud computing, which are even more perceptible across the domestic boundaries. India’s proactive functions in cloud services have recently created great enthusiasm among technology rulers in nations like the United States. This endless cloud computing progression in India is of commercial importance and participants create an uncertain yet potential image.
Here’s a glance at how rapidly India is marching towards becoming a center for both quick cloud consumption and one of the finest suppliers of cloud hosting

India’s Cloud Penetration

Across some major countries for cloud consumption, India’s cloud penetration indicates a potential growth opportunity in the industry. According to a Nasscom report, India’s GDP spend was USD 2,597 billion in 2018, with its total IT spend being USD 42 billion. The same report indicates that as a percentage of its GDP, India’s IT spending is only 1.6% while the global average is 3.0% which is almost double than the country. India’s cloud adoption is presently positioned at 6.0%, lagging behind the global average (7.9%) and almost half that of the US and UK’s adoption levels (11.4% each). The present global pattern suggests that IT expenditure and cloud implementation in India is in the budding stage of development.

India’s Market Size

The ever-growing market for cloud consumption in India is a significant driver in boosting the country’s growth in the state of cloud. Nasscom states that the current estimate for cloud computing in India is USD 2.5 billion, dominated by IaaS & SaaS. As a percentage of Total Cloud spending, the share of SaaS is anticipated to boost from 39% in 2018 to 47% by the year 2022. The growth in IaaS is expected to continue but the percentage share is projected to fall from 39% in 2018 to 33% in 2022. SaaS is anticipated to demonstrate powerful development fueled by a larger number of cost-effective SaaS products for big, moderate and small businesses. Although SaaS is anticipated to be a leader in the overall cloud services, the level of Cloud adoption may vary depending on several drivers and aspects. These figures indicate at a possible jump in cloud computing estimate to rise up to USD 7.1 billion by 2022.

India’s Market Forecast

The Indian Cloud industry will develop by 3x to USD 7.1 billion by 2022, driven by elevated rates of acceptance. India’s cloud expenditure growth level is world’s second-highest in 2016-18 at 40.2% (CAGR), second to only China. It is anticipated that more than 13% of India’s workload will be transferred to the cloud by the implementation, as per Gartner Cloud Forecast.

India’s Key Challenges

Although the prospects are mainly favorable, some difficulties must be overcome to enhance cloud acceptance.

Data Security

Data security is a key issue for client and company data handling businesses. India places fourth in terms of online security violations.

Governing Compliance

The most important factors of companies include national and global laws on data autonomy and data protection, industry-specific compliance with legislation and states.

Process & System

Migration into cloud facilities and offers continues to re-engineer current procedures and structures in succession.

Cost Savings Obscurity

Cost-sparing visibility tends to decrease over a long period of time and is a struggle for companies because most cloud business vendors have complicated price designs, which can also include unseen fees.


Large businesses need the ability to incorporate in relation to price benefits efficiently with current deployments.

Loss of Monitoring

Concerns regarding prospective governance losses at the stage of infrastructure where companies lose immediate control of information, computers and security protocols.

Lock-in Vendor Ecosystem

They also miss links to stronger products and distribution accessible to other cloud providers. The ease of moving in and out of the cloud vendor’s ecosystem can be potentially lost.


Cloud experiences in India so far have been encouraging with the correct setting and intellect behind. But IT experts claim that it’s only a warmup; more from this South-Asian nation is in the pipeline, that is recognized around the globe for its technical capabilities. We are going to experience further cloud implementation among businesses in the coming days and months, opening up new possibilities for businesses and careers.

The data is extracted from NASSCOM Cloud: Next Wave Of Growth In India 2019 (April) Report