According to Zinnov, the overall Indian market for Cloud (both Public & Private) was worth $860-912 mn in CY 2011. Of this, the Public Cloud market accounted for 20-22% with the rest being Private Cloud. The Public Cloud market has evolved in the last two years with traction across SaaS, PaaS & IaaS. At $160-192 mn in CY11, the Public Cloud in India is at a nascent stage.
The Indian SaaS market was largely dominated by email, collaboration tools, CRM/ ERP and stood at $123-143 mn for CY11. It grew at a CAGR of 46% in 2009-11.
The PaaS and IaaS markets in India are rapidly growing, though from a small base. The PaaS market in India stood at $1.5-2.5 mn in CY11, growing at a CAGR of 75% from $0.5-1.5 mn in CY09. The IaaS market in India was worth $38-47 mn in CY11. It grew at a CAGR of 84% during 2009-11.
Praveen Bhadada, Director – Market Expansion, Zinnov Management Consulting, said, “The Public Cloud market is expected to grow at a CAGR of 55% in the near future and will become a default choice for new IT investments, especially in the SMB segment. The Cloud could take up over 20% of the total Indian IT spend within the next couple of years. This would mean that there would be significant demand in the job market for Cloud Computing related skills.”
“20% of the Public Cloud market in India is currently being addressed by Indian companies. Categories like SaaS and Cloud Computing, are being preferred for VC investments in India,” he added.
The Public Cloud market opportunity could potentially reach $685 mn by CY14.