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Public cloud services revenue in India will reach $2.5 billion in 2018: Gartner

The revenue of public cloud services in India is expected to reach $2.5 billion this year, up 37.5% from a year before, according to Gartner. In 2017, the public cloud revenue in India was $1.8 billion.

“While the public cloud revenue market in India exhibits solid growth in 2018, the growth rate is expected to flatten, which is indicative of a maturing market,” said Sid Nag, research director at Gartner.

Public cloud is divided into five segments: Business Process as a Service (BPaaS), Platform as a Service (PaaS), Software as a Service (SaaS), Cloud Management and Security Services, and Infrastructure as a Service (IaaS).

The revenue growth of public cloud services will majorly be driven by the IaaS segment, which is expected to reach $1 billion in 2018, up 46% from 2017. The growth in IaaS segment is being driven by enterprises refraining from using data center build-outs and consolidation among data center vendors.

“While IaaS enables efficiencies and cost benefits, organizations need to be cautious about IaaS providers potentially gaining unchecked influence over customers and the market,” said Mr. Nag. “In response to multicloud adoption trends, organizations in India are also increasingly demanding a simpler way to move workloads, applications and data, across cloud providers’ IaaS offerings without penalties.”

SaaS, the largest segment of Indian public cloud market in 2017, is predicted to reach $932 million this year, up 34% from last year. Gartner said that organizations would continue to move toward applications and workloads to cloud locally, as opposed to running them on-premises. The demand for purpose-built services to deliver specific business outcomes is rapidly increasing.

Whereas, the PaaS segment will reach $191 million in 2018, up from $143 million in 2017. Within this segment, particularly the database PaaS (dbPaaS) is forecasted to total $32 million this year, an increase of 50% from a year before.

Gartner said that the growth in dbPaaS segment presents an opportunity for hyperscale cloud providers to include it in their services to increase customers.

public cloud services revenue in India
Image Source: Gartner

Also read: Spending on data center infrastructure in India will reach $2.7 billion in 2018: Gartner

Gartner will share additional analysis on data center and IT operations trends at Gartner global IT Infrastructure & Operations events.

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Worldwide public cloud market to hit $186.4 billion, with hyperscale cloud providers dominating it: Gartner

According to a new analysis by Gartner, public cloud services market is projected to grow from $153.5 billion in 2017 to $186.4 billion in 2018, which is a rise of 21.4 percent.

Amongst the cloud segments, IaaS (Infrastructure-as-a-service) was identified as the fastest growing segment, predicted to grow 35.9 percent in 2018, reaching $40.8 billion, led by leading IaaS providers like Amazon Web Services (AWS) and Microsoft Azure.

Source: Gartner

SaaS (Software-as-a-service) was again identified as one of the largest segments of the cloud market with a revenue growth expected of 22.2 percent, to hit $73.6 billion in 2018. Gartner also predicted that by 2021, SaaS will reach 45 percent of the total application software spending.

SaaS based application models are becoming a preferred choice for most of the enterprises. Sid Nag, who is a research director at Gartner, thinks that the SaaS demands are changing with users seeking more purpose-built solutions that can meet their specific business outcomes.

Under PaaS (Platform-as-a-Service) segment, dbPaaS (database platform as a service) is seeing the highest demand, expected to hit $10 billion by the year 2021. As a result, the hyperscale cloud providers are expanding their range of services to include dbPaaS.

Talking about the high demand of dbPaaS, Mr. Nag said that the customers should explore other dbPaaS service offers apart from the one offered by the large service providers, to avoid any lock-in.

Despite the high forecast rates, Gartner expects the growth rate to stabilize from 2018 onwards, due to the maturity that cloud services might gain within the IT segment.

One of the primary challenges here is to avoid vendor lock-in. With most of the big cloud providers like AWS, Microsoft etc. offering major cloud services, companies that once use any vendor’s cloud platform can find it very expensive and complicated to move away again.

Gartner said that this scenario might give rise to new demands by customers who want easy migration of their apps and data, without any penalties.