According to a report by IDC, the revenue from Indian public cloud services (PCS) market, including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS) solutions, totalled $8.3 billion in 2023. The overall Indian public cloud services market is expected to reach $24.2 billion by 2028, growing at a compounded annual growth rate (CAGR) of 23.8 per cent for 2023-28.
Commenting on the report, Rajiv Ranjan, associate research director, cloud and artificial Intelligence (AI), IDC India, said, “While enterprises continue to modernise IT on IaaS offerings, core business applications have a shifting trend to SaaS models on public cloud. These offerings are further enhanced by Generative AI (GenAI) technologies to improve user experience and productivity. While SaaS will drive the volume of public cloud, strong growth also comes from PaaS offerings, like fully managed databases and serverless technologies, to deploy pure cloud native applications and modern data management infrastructure. In addition, GenAI adoption to streamline operations, improve customer experience, and increase innovation will also drive public cloud services growth.”
The report highlighted that the top two vendors continued to hold more than 40 per cent of the market in 2023. SaaS continued to be the largest category in the overall public cloud services market, followed by IaaS and PaaS. Additionally, segments like customer relationship management (CRM), enterprise risk management (ERM), collaborative applications, and IaaS continued to drive growth, demand for AI platforms, data management software and system infrastructure software also continued to rise.
Meanwhile, Harish Krishnakumar, senior market analyst, IDC India, said, “Public cloud adoption in India continued to rise as enterprises preferred public cloud services for their digital transformation initiatives, application modernisation, and productivity enhancements. Moreover, the increased focus on cost optimisation in recent times has accelerated the move towards as-a-service consumption models, thus driving public cloud adoption. With enterprises making significant investments in next-generation technologies like GenAI, the demand for robust computing infrastructure and data management capabilities will continue to drive public cloud adoption in the upcoming years.”
