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05 July 2012

Public Cloud Market in India has rapidly evolved in the last 2 years and stands at USD 160-192 Million in CY 11: Zinnov Study

 Key Findings of the Study:
  • Public Cloud comprises of 20-22% of the total cloud computing market in India
  • The Public Cloud Market demonstrates potential to reach USD 685 Mn by CY14
  • Indian Software-as-a-Service (SaaS) market stands at USD 120-143 Mn, potential to reach USD 410 Mn by CY14
  • Public Cloud is at a very nascent state of the market and may not have hit the inflection point yet
  • Infrastructure-as-a-Service (IaaS) has shown a promising growth of 84% in the last 2 years

Bangalore, July 5, 2012: Zinnov, a leading market expansion and globalization advisory firm, today released a first-of-its-kind study to evaluate the Public Cloud opportunity in India, titled, “Public Cloud Opportunity in India”. The released study, peggedthat the overall Indian market for Cloud (both Public & Private) has grown steadily to reach ~USD 860 – 912 Mn in CY11.  Of the total pie, the study highlighted that the Public Cloud market comprises of 20- 22% of the share, while the remaining 78-80% is accounted by Private Cloud. 
Change Catalysts since CY09 until CY11
  • Market evolving from concept to reality; continues to be price sensitive; may not have hit the inflection point yet
  • Virtualization, RIM, outsourcing’s acceptance in the Indian market opening avenues for cloud adoption
  • Deep focus on market creation by a number of MNC and Indian companies. Talent availability at demand side is a challenge
  • Adoption continues to be in email, collaboration, CRM/ ERP.
  • Increasing preference for local infrastructure/ datacenters
  • Adoption evolving across verticals such as IT-ITeS, Manufacturing, BFSI, Education, Retail, Healthcare, etc.
  • Adoption by both large companies & SMBs. Strengthening of the channel part ner ecosystem for cloud
Developer ecosystem and startups starting to embrace public cloud. Number of telecom companies & SIs venturing into the cloud space
The Public Cloud market has rapidly evolved in the last 2 years in India with significant traction across SaaS, PaaS & IaaS, added the study. With the current market of USD 160-192 Million in CY11, Public Cloud in India is at a very nascent state of the market and may not have hit the inflection point yet, indicating significant future potential.
SaaS market in India is largely dominated by email, collaboration tools, CRM/ ERP and currently stands at 123-143 USD Million for CY11. The SaaS market has grown at a CAGR of 46% from 56-67 USD Million in CY09 until CY11.
The PaaS and IaaS markets in India on the other hand are rapidly growing, though from a small base, highlighted the study.  The PaaS market in India is at 1.5-2.5 Million USD in CY11, which has grown at a CAGR of 75% from 0.5-1.5 Million USD in CY09. IaaS market in India on the other side stands at 38-47 Million USD as in CY11. This segment has seen a promising growth of CAGR 84% from a market share of 11-14 Million USD in CY09.
Speaking about the study, Mr. Praveen Bhadada, Director-Market Expansion, Zinnov Management Consulting, said, “Public Cloud market is expected to grow at 55% CAGR in the near future and will become a default choice for new IT investments, especially in the SMB segment. We will not be surprised, if Cloud takes up more than 20% of the total Indian IT spend in the next couple of years. This would also mean that there will be a significant demand in the job market for Cloud Computing related skills.”
“Additionally, the huge Global and Domestic opportunity that exists in the Cloud space, has excited a lot of Indian start-ups and infact 20% of the total Public Cloud market in India is currently being addressed by Indian companies. Further to this, we have also witnessed that categories like SaaS and Cloud Computing, are being preferred for VC investments in India”, he added.

The study also highlighted that a multitude of trends are emerging in the Indian Public Cloud Market. Some of them include, Price Sensitivity of the Market; Business Model around Long Term Contracts; Acceptance of Online Payment Options; Focus on Offline Models; Focus on SMBs, Clusters and Target Verticals; Channel Focus to Scale in the Market; Going Local and Increasing Relevance for Customers, besides many others.
Last but not the least and drawing some analysis on the growth numbers, the study read that as a result of the demand and supply forces, the Public Cloud Market opportunity could reach potentially reach USD 685 Mn by CY14.  
About Zinnov
Founded in 2002, Zinnov – meaning Zeal in Innovation – is a leading Globalization and Market Expansion Advisory firm, with specialization in areas like Global Sourcing, Emerging Markets Expansion, Human Capital Optimization, Small & Medium Businesses, Innovation, Cloud Computing and Enterprise Mobility. Zinnov provides advice to global leaders in business and technology and works collectively with them to tackle prevailing organizational challenges by analyzing changing dynamics, improving performance, and building institutional capability. The services delivered to its clients through advanced reasoning and analytical techniques, provides solutions that help in integrating organizational vision, business definition and processes.
For further information, please contact:
Kinjal Chhetri Panwar
Senior Marketing Manager, Zinnov
Phone No: +91 9466132313

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