Public cloud services revenue in India will reach $638 million by the end of 2014, an increase of almost 34 percent, or $161 million over 2013 revenue, according to Gartner. Public cloud services revenue is driven by high rates of growth in key market segments, namely cloud infrastructure as a service (IaaS) and software as a service (SaaS), two of the largest segments in the public cloud services market. Spending on SaaS will total $249 million in 2014, an increase of 37 percent over last year. Spending on IaaS will grow 33 percent to $77 million during the same period.
Gartner predicts continuing high rates of spending on cloud services in India through 2018 when the market is expected to reach almost $2 billion.
“The expanding use of information technology in India, coupled with aggressive adoption of cloud services, makes India a rich market for cloud services growth,” said Ed Anderson, research vice president at Gartner. “Organizations in India see cloud services as a means to develop new applications and support a more effective use of IT budgets.”
According to Gartner’s latest cloud adoption survey, organizations in India demonstrate a preference for public cloud services beyond most other countries. 53 percent of organizations in India indicate they are using cloud services today, with another 43 percent indicating plans to begin using cloud services in the next 12 months.
Business process as a service (BPaaS) is expected to grow to from $131 million in 2014 to $358 million in 2018. SaaS is expected to grow to $735 million in 2018, PaaS is forecast to grow to $121 million, and IaaS is forecast to grow to $295 through 2018.
Mr. Anderson said the growth of cloud services varies by country and specific cloud service type. The Indian market is unique in that demand is consistently high for all types of cloud services.