Indian Cloud market was $535m in 2011,70% growth expected in 2012: IDC

IDC estimates the Indian Cloud market to be in the region of $535m in 2011, with a growth of more than 70% expected for 2012 and almost 50% growth forecasted for the next 3 years.

It is a market that is fast maturing and seeing many new entrants with a broad range of investments/solutions taking key roles in the cloud ecosystem. Public cloud still lags way behind the private cloud adoption for a number of factors.

International Data Corporation (IDC) has released a Cloud research report, India Cloud Market Overview, 2011-2016, which provides a reality check and detailed understanding of the adoption in India, future potential and the major trends the market is witnessing. The Research also addresses the attitudinal and purchase behaviors of end users and what is influencing them in their choice for adoption.

"We have definitely seen cloud cross the inflexion point in end 2011; use cases especially in IAAS & SAAS areas provide testimony to that. With proper messaging from key vendors and due diligence of opportunities which exist in the cloud delivery models, the market will grow much faster in the coming years" says Nirupam Chaudhuri, Research manager - Software & IT Services, IDC India.

Business priorities have changed in the recent troubled economic times and are influencing the way IT is being looked as a strategic tool to grow faster. 2012 has been a tough year so far, but it is rapidly starting to get to a point where mature companies with careful planning and focus on business/operational efficiency are fast moving into the leadership spots.  These companies have been proactively looking at various "disruptive technologies" that will ensure the IT is elastic enough to meet the business needs and growth. Cloud models and the flexibility they bring are definitely featuring high there.

"Cloud providers also need to strengthen their capabilities to understand the business requirements of the organizations and come up with apt value propositions. "Organizations are more likely to work with firms that understand their business processes better and industry dynamics, and hence are better suited to overseeing the transition of the organization to a cloud environment without disruption of the business processes", says Sandeep Kumar Sharma, Senior Market Analyst- IT Services, IDC India.