Public cloud services revenue in India to grow 24% in 2019: Gartner
Cloud application services (SaaS) is set to be the fastest-growing market segment in India in 2019.
“The shift from ‘cloud first’ to a ‘cloud only’ model is pushing organizations in India to increase their spending on public cloud services to advance their digital business initiatives,” said Sid Nag, research vice president at Gartner. “Disinvestments in new data centers are also one of the early signs of this move.”
Cloud application services (SaaS) is set to be the fastest-growing market segment in India in 2019, accounting for nearly half of total public cloud services revenue, followed by cloud system infrastructure services (IaaS). SaaS revenue is estimated to grow 23% in 2019 to reach $1.15 billion while IaaS spending is estimated to grow 22% in 2019.
The growth of SaaS spending is being fuelled by the increased end-user spending on customer relationship management (CRM) as organizations in India move away from commercial off-the-shelf (COTS) and license-based on-premises software to a subscription-based SaaS model to gain agility, innovation and cost efficiency.
The Gartner CIO Agenda survey found that 34% of CIOs in India are expected to increase their spending on cloud services in 2019. “Organizations want to reduce capital expenditure spend by consolidating existing data centers and halting the buildout of new ones,” said Nag.
Table 1. India Public Cloud Services Revenue Forecast, 2018-2020 (Millions of U.S. Dollars)
|Cloud application infrastructure services (PaaS)||204||251||313|
|Cloud application services (SaaS)||935||1149||1396|
|Cloud business process services (BPaaS)||178||213||261|
|Cloud management and security services||187||224||269|
|Cloud system infrastructure services (IaaS)||462||605||809|
Source: Gartner (June 2019)