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A Game-Changer for Industries Across the Nation


A Game-Changer for  Industries Across the Nation

In recent years, cloud computing has emerged as a game-changer in the technology landscape, revolutionizing the way businesses operate and transforming industries across the globe. In India, the cloud computing market has witnessed rapid growth, driven by the increasing adoption of digital transformation strategies by businesses and the government’s push towards a digital economy. 


Market Overview
The cloud computing market in India witnessed remarkable growth in 2022. In the first half of the year, the market had touched $2.9 billion and continued to grow in the second half of the year as well. Looking ahead, it is projected that the overall India public cloud services market will expand further, reaching an estimated value of $17.8 billion by 2027. This growth is anticipated to occur at a compound annual growth rate (CAGR) of 23.4% between 2022 and 2027.

According to a recent report from Nasscom, cloud technology is projected to contribute 8% of India’s GDP by 2026. It has the potential to boost the country’s GDP by $310-380 billion and create 14 million jobs. The rise of born-in-the-cloud companies has been instrumental in paving the way for India’s progress. Notably, India ranks third globally in terms of unicorns, highlighting the significance of this trend. Furthermore, the Indian government has been actively supporting this growth by establishing data centers, improving bandwidth, and implementing other necessary infrastructure.

48% YoY increase in cloud-based cyberattacks for 2022, as organizations increasingly move operations to the cloud due to escalated digital transformations. The largest increase was seen in Asia (+60%).

In this respect, cloud will continue to grow exponentially in India, though organisations now need to seriously consider greater protection for their networks. There are three main directions you can choose when securing cloud networks and migrations:

Protect your assets using security solutions delivered by your cloud vendor Invest in a DIY approach Work with a vendor who specializes in cybersecurity.

There is growing complexity right now, as most organizations migrate to hybrid-cloud and multi-clouds, which are now in use among 76 percent of enterprises, compared to 62 percent a year ago. There are reports coming, many companies are retreating back from the cloud and ‘repatriating’ data, workloads, and applications back to on-premise or colocation facilities.

The surge in demand for public cloud services was further fueled by the accelerated adoption of artificial intelligence (AI), as enterprises expanded their investments in cloud-based AI platforms.


Market Drivers
There are a number of factors that are driving the growth of the cloud computing market in India. These include:
In response to the rapid growth of India as a key market, cloud service providers have actively expanded their presence in the country, unveiling new data centers and cloud regions. This expansion has significantly improved their ability to deliver services to customers. The adoption of public cloud services has been particularly notable in verticals such as BFSI (Banking, Financial Services, and Insurance) and manufacturing. However, other sectors including the public sector, media, and gaming have also witnessed a significant increase in demand for cloud services.

Collaboration applications, compute resources, storage solutions, customer relationship management (CRM), enterprise resource management (ERM), and security services remain the most sought-after public cloud offerings. Additionally, there has been a remarkable surge in the adoption of cloud-based artificial intelligence (AI) platforms and the development of cloud-native applications.

Adoption by Businesses: Indian businesses across various sectors have recognized the potential of cloud computing to drive agility, scalability, and cost efficiency. Small and medium-sized enterprises (SMEs) have been at the forefront of cloud adoption, leveraging cloud services to level the playing field with larger competitors. Startups, in particular, have embraced cloud computing as a foundational technology, enabling them to quickly scale their operations without significant upfront investments.

“The accelerated digital adoption among Indian enterprises with cloud as a key enabler continued to be the prime driver of the public cloud services market in India, as cloud adoption helps enterprises drive efficiency in operations along with scalability benefits, thereby enabling them to gain a competitive advantage. 

The surge in public cloud adoption is expected to continue in the upcoming years, with more enterprises focusing on digital-first business strategies, with the adoption of technologies like AI/ML, analytics, etc., and cloud-native application development also gaining momentum. 
Enterprises would have a strong inclination towards as-a-service consumption models for their IT infrastructure requirements as a measure to keep IT spending in check amidst the challenging economic landscape and also mitigate talent shortages in ITOps,” according to IDC India.

Large enterprises in India have also recognized the benefits of cloud computing. Migrating on-premises infrastructure to the cloud has helped them reduce capital expenditure, optimize resource utilization, and enhance business continuity and disaster recovery capabilities. The shift to cloud-based software applications has also allowed businesses to access advanced technologies like artificial intelligence, machine learning, and big data analytics without hefty upfront investments.

Government Initiatives: The Indian government’s focus on digitization and data localization has been a key driver for the growth of the cloud computing market. Initiatives such as “Digital India” and “Make in India” have encouraged the adoption of cloud services across various sectors. 

The government’s push for data localization, mandating that certain categories of data must be stored within the country, has also led to increased demand for cloud infrastructure and data centers.

Furthermore, the National Digital Communications Policy (NDCP) 2022 aims to promote the development of a robust digital infrastructure, including cloud computing, to support the country’s growing digital economy. These initiatives have created a favorable environment for cloud service providers, attracting both domestic and international players to invest in the Indian market.

Availability of skilled talent in India: India has a large pool of skilled talent in the IT and ITeS sectors. This talent pool is a major advantage for the cloud computing industry in India.


Market Trends
The cloud computing market in India is characterized by a number of trends, including:

The rise of hybrid cloud: Hybrid cloud is a combination of public cloud and private cloud. This is a popular option for businesses that want to take advantage of the benefits of both public and private cloud computing.
The growth of SaaS: Software-as-a-service (SaaS) is a cloud-based delivery model for software applications. SaaS is a popular option for businesses of all sizes because it is easy to use, scalable, and cost-effective.
The increasing adoption of cloud-based security solutions: Businesses are increasingly adopting cloud-based security solutions to protect their data and applications. Cloud-based security solutions are more scalable and cost-effective than traditional on-premises security solutions.


Major players 
The top three cloud service providers in India are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform.

Amazon Web Services (AWS): AWS is the leading cloud service provider in the world. It offers a wide range of cloud computing services, including compute, storage, database, analytics, networking, machine learning, and artificial intelligence. AWS is a popular choice for businesses of all sizes, from small startups to large enterprises.

Microsoft Azure: Azure is the second-leading cloud service provider in the world. It offers a wide range of cloud computing services, similar to AWS. Azure is a popular choice for businesses that use Microsoft products, such as Windows Server and Office 365.

Google Cloud Platform (GCP): GCP is the third-leading cloud service provider in the world. It offers a wide range of cloud computing services, similar to AWS and Azure. GCP is a popular choice for businesses that use Google products, such as Google Workspace and Google Cloud Storage.

Challenges and Opportunities: While the cloud computing market in India is experiencing rapid growth, there are challenges that need to be addressed. One significant challenge is the lack of adequate internet infrastructure in certain regions, especially rural areas. Limited internet connectivity and bandwidth constraints hinder the adoption of cloud services in these areas. Addressing this infrastructure gap will be crucial to expanding the reach of cloud computing in India.

Security concerns: Data security and privacy concerns also pose challenges to cloud adoption. Businesses and consumers alike are becoming increasingly aware of the importance of data protection. Cloud service providers need to ensure robust security measures and comply with regulations to instill confidence in users.

Lack of awareness: There is still a lack of awareness about cloud computing in India. This is a challenge for the cloud computing industry because it needs to educate businesses about the benefits of cloud computing.

High cost: The cost of cloud computing can be a barrier for some businesses. The cloud computing industry needs to offer more affordable pricing options to reach a wider range of businesses.

However, these challenges also present opportunities for innovation and growth. Companies that can provide solutions to address connectivity issues, enhance data security, and offer localized services tailored to Indian needs will be well-positioned to capture the untapped potential of the Indian cloud computing market.

Future Outlook: The future of the cloud computing market in India looks promising. With the government’s continued focus on digitization and initiatives to improve internet connectivity, the demand for cloud services is expected to surge further. The Indian market presents significant opportunities for global cloud service providers as well as domestic players.

Moreover, emerging technologies like 5G, edge computing, and Internet of Things (IoT) are expected to drive the next phase of cloud adoption in India. These technologies require scalable and flexible cloud infrastructure to support their deployment and operations, creating new avenues for growth.


The cloud computing market in India has experienced exceptional growth in 2022, driven by increasing digital transformation efforts, government initiatives, and a thriving startup ecosystem. While challenges such as internet infrastructure and data security need to be addressed, the overall trajectory remains positive.

The continued investment in cloud infrastructure, the rise of emerging technologies, and the government’s support for a digital economy will further propel the growth of the cloud computing market in India, unlocking immense opportunities for businesses and enabling India to become a global cloud hub.

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