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MUMBAI, India. November 24, 2020

Gartner Forecasts End-User Spending on Public Cloud in India to Grow 29% in 2021

Analysts Discuss the Opportunities for Public Cloud in India During Gartner IT Symposium/Xpo 2020 India, November 23-25

End-user spending on public cloud services in India is forecast to total $4.1 billion in 2021, an increase of 29.4% from 2020, according to the latest forecast from Gartner, Inc.   

Analysts discussed the outlook for the Indian IT market during Gartner IT Symposium/Xpo India, which is taking place virtually through Wednesday.

“The onset of the COVID-19 pandemic was the starting point of the Cloud 2.0 era,” said Sid Nag, research vice president at Gartner. “Indian enterprises were not ready for the large scale of remote work. However, public cloud delivered on its promise of scalability, cost efficiency and business resilience for Indian enterprises during this critical time in 2020. As digitalization efforts further evolve in the country, public cloud will become a must have technology for Indian enterprises.”

In 2021, spending on managed services and cloud infrastructure will make up 8% of total IT spending in India. The low cost of entry provided by public cloud services will be a big influence on Indian CIOs to increase their spending on this technology in the price sensitive market.

Although the cloud application services (SaaS) segment is forecast to be the largest segment in the public cloud services market in India in 2021, cloud system infrastructure services (IaaS) will experience the largest growth at 44.6% (see Table 1.)

Table 1. India Public Cloud Services End-User Spending Forecast (Millions of U.S. Dollars)

 

2019 Spending

2019 Growth (%)

2020 Spending

2020 Growth (%)

2021 Spending

2021 Growth (%)

Cloud Business Process Services (BPaaS)

186

5.8

184

-1.1

195

6.0

Cloud Application Infrastructure Services (PaaS)

549

54.3

718

30.7

968

34.8

Cloud Application Services (SaaS)

1,133

22.7

1,156

2.1

1,365

18.1

Cloud Management and Security Services

251

22.9

276

10.0

362

31.2

Cloud System Infrastructure Services (IaaS)

696

60.8

816

17.2

1,180

44.6

Desktop as a Service (DaaS)

30

105.8

49

63.7

70

43.5

Total Market

2,845

35.1

3,199

12.4

4,140

29.4

BPaaS = business process as a service; IaaS = infrastructure as a service; PaaS = platform as a service; SaaS = software as a service
Note: Totals may not add up due to rounding.

Source: Gartner (November 2020)

Indian enterprises are at an early stage of cloud adoption as compared to their global counterparts. The COVID-19 pandemic accelerated their cloud adoption rate significantly as Indian CIOs migrated from legacy systems to public cloud services to maintain business continuity and resilience through 2020. Indian enterprises moved critical business applications such as email, web hosting, customer relationship management (CRM), enterprise resource planning (ERP) and human resources (HR) to the cloud, ensuring employees can access them anytime and from anywhere in the world, as long as they have internet access.

“While end-user spending on cloud in India is increasing, there is a long road ahead for Indian enterprises to achieve the same market maturity as the U.S. or Europe. India-based organizations and their CIOs need to focus on the cultural shift that will make them cloud-ready and give them a competitive edge,” said Mr. Nag.

The recent investment by hyperscalers, such as Amazon Web Services, Google Cloud and NTT, in India further testify the opportunities for public cloud to grow in this market.

Gartner clients can read more in the report "Forecast: Public Cloud Services, Worldwide, 2018-2024, 3Q20 Update." Learn more about how to Reset your business strategy on gartner.com. Complimentary research, insights and webinars are offered to help leaders build resilience on their path to business recovery.

About Gartner IT Symposium/Xpo

Gartner IT Symposium/Xpo 2020 is the world's most important gathering for CIOs and other IT executives. IT executives rely on these conferences to gain insight into how their organizations can use IT to overcome business challenges and improve operational efficiency. Follow news coming from Gartner IT Symposium/Xpo on Smarter With Gartner and on Twitter using #GartnerSYM.

About Gartner

Gartner, Inc. (NYSE: IT) is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and an objective resource for more than 14,000 enterprises in more than 100 countries — across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit gartner.com.

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