The Hindu Business Line
Nasscom sees $7.1-b cloud market by 2022
Big Data, Internet of Things and artificial intelligence expected to drive momentum
Driven by the growing adoption of Big Data, analytics, artificial intelligence (AI) and Internet of Things (IoT), the Indian cloud market could grow three-fold to $7.1 billion by 2022, a report by Nasscom said on Tuesday.
The report titled ‘Cloud — Next Wave of Growth in India’, prepared along 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 $1 billion in 2018, and is forecast to grow at 25 per cent 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, and vibrant startup and connected ecosystem, the report said.
The Indian software as a service (SaaS) market, on the The report has called for time-bound targets and sharper focus on a multitude of operational factors to accelerate the momentum of the cloud market
other hand, is expected to grow at 36 per cent 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 ecosystem, and adoption of newer technologies like AI and machine learning (ML) to build products. Globally, cloud spending on IT is growing at 16.5 per cent (CAGR) and is expected to touch $345 billion by 2022.
To accelerate the cloud growth momentum in India in the right direction, the report recommended that the government set tangible time-bound targets and focus more on a 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,” said Nasscom President Debjani Ghosh.
“Complementing the ecosystem are futuristic technologies such as AI, ML, advanced analytics and immersive media that are aiding in the seamless adoption of SaaS, IaaS and PaaS offerings.”
She added that to bolster India’s cloud market story, there is a need to spur innovation.
“Innovation will reduce the cost of services and lead to wider usage of cloud. This report will be a ready-reckoner for all to understand the imminent need for cloud and the underlying opportunities,” Ghosh said.