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29 Mar 2019

India Public Cloud Services Spending Forecast to Value at $6.3 Billion by 2022, IDC Reports

INDIA, March 29th, 2019 - India spending on public cloud services and infrastructure is forecasted to reach $2.9 billion in 2019, an increase of 34.5% over 2018, according to the latest update of the IDC Worldwide Semiannual Public Cloud Services Spending Guide. Although annual spending growth is expected to be moderate during forecast period 2017-22, the market is expected to hit a five-year compound annual growth rate (CAGR) of 33.9% in public cloud services spending.

“Enterprises in India are realizing the true cloud potential and are including emerging technologies like AI, IoT, Analytics and Blockchain in their portfolio, this anticipated journey towards the value added services are all driven out of the cloud” Ashutosh Bisht, Senior Research Manager, Customer Insights and Analysis group, IDC said.

“Enterprises are adopting to the multi-cloud management capability; the challenge lies in managing and moving workloads seamlessly across multiple cloud platforms” Bisht added.

Software as a Service (SaaS) is by far the dominant cloud-delivered service in the region capturing 61.0% of the overall public cloud spending in 2018. Infrastructure as a Service (IaaS) is the second biggest product category in spending on cloud, with a 32.9% share followed by Platform as a service (PaaS) with 6.1% share in 2018. SaaS spending will be skewed towards Application throughout the forecast with Collaborative Applications, Customer Relationship Management (CRM) Applications and Enterprise Resource Management (ERM) Applications as the major contributors towards the spend. IaaS spending will be balanced throughout the forecast with server spending trending ahead of storage spending.

Telecommunication and Banking are the two leading industries accounting for 14.7% and 14.5% market share of the overall public cloud spend in 2018. Following this, Discrete Manufacturing, Personal and Consumer Services and process manufacturing altogether are also expected to spend more than 26.0% on Professional Services in 2018. These five industries are expected to remain as the highest spenders in 2022 due to their continued investment in public cloud solutions. However, the industries that will see the fastest spending growth over the five-year forecast period (2017-22) are Retail (40.3% CAGR) and Professional Services (39.8% CAGR), respectively.

"India Cloud market is moving through some interesting times. Organizations are looking for partners that can provide "best of breed" approach specifically for dealing with their multi-cloud environment along with deep-rooted technological and industry expertise. Over the coming years, organizations are planning to spend on SaaS applications alongside custom applications running on PaaS." Rishu Sharma, Associate Research Manager, Cloud and AI, IDC India.

The IDC Worldwide Semiannual Public Cloud Services Spending Guide   quantifies public cloud computing purchases by cloud type for 20 industries and five company sizes across eight regions and 47 countries. Unlike any other research in the industry, the comprehensive spending guide was designed to help IT decision makers to clearly understand the industry-specific scope and direction of public cloud services spending today and over the next five years.

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About IDC Spending Guides

IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships. For more information about IDC's Spending Guides, please contact Monika Kumar at mkumar@idc.com.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC   and LinkedIn.

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Contact
For more information, contact:

Shivani Anand
sanand@idc.com
9910466896

Rishu Sharma
risharma@idc.com
+91 124 476 2300

Ashutosh Bisht
abisht@idc.com
+918066991108