High spending on cloud services likely to continue through 2019, with market expected to reach $1.9 bn

Public cloud services revenue in India is forecast to touch $731 million by the end of 2015, growing more than 31 per cent over last year, research firm Gartner said.

High rates of spending on cloud services in India to continue through 2019 when the market is expected to reach $1.9 billion, Gartner said in a statement.

The revenues, which stood at $555 million in 2014, are expected to be driven by high growth rates in key market segments like cloud  infrastructure as a service (IaaS), cloud management and security services and software as a service (SaaS), it added.

Gartner forecast spending on IaaS to total $100 million in 2015, an increase of 25 per cent over last year. Spending on cloud management/security will grow 36.6 per cent to $82 million, and SaaS will grow 33.4 per cent to $302 million this year, Gartner added.

“The forecast for cloud services vary based on local factors, including supply and demand within the local markets, country-specific economic conditions, currency exchange rates, and other global market factors,” Gartner Research Director Sid Nag said.

The explosive growth of IaaS and SaaS in the India market is an indication that enterprises in India are moving away from building their own on premises infrastructure, as well as migrating from the traditional software licensing model, to a SaaS model served up by cloud providers, Nag added.

Source: http://www.business-standard.com/

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