The software as a service (SaaS) market in India is likely to grow at a rate of 36 per cent and estimated to reach US$ 3.3-3.4 billion by 2022
Increasing adoption of Internet of Things (IoT), artificial intelligence (AI), Big Data and analytics, is likely to push the cloud market in India. The cloud market is expected to grow threefold to US$ 7.1 billion by 2022, according to a latest report by NASSCOM.
In 2018, cloud spending was estimated to be around six per cent of the overall IT spending in the country, says the report, which is prepared with Google Cloud and Deloitte Touche Tohmatsu India LLP.
Infrastructure as a service (IaaS) spending in India was estimated to be around US$ 1 billion last year and is predicted to grow at a rate of 25 per cent annually to reach US$ 2.32 billion in 2022.
As per the report, the factors that can drive the IaaS acceptance in the country are improved infrastructure, increased innovation, economic benefits, vibrant startup and connected ecosystem.
Growth in SaaS market
On the other hand, the software as a service (SaaS) market in India is likely to grow at a rate of 36 per cent and estimated to reach US$ 3.3-3.4 billion by 2022. This growth is likely to supported by lower cost of workforce, mature sales eco-system, abundant talent availability, adoption of new and emerging technologies such as AI and ML to develop products.
The cloud spending worldwide on IT is growing at a compound annual growth rate (CAGR) of 16.5 per cent and is estimated to reach US$ 345 billion by 2022.
Commenting on the findings, Debjani Ghosh, President, NASSCOM said, “India’s cloud computing market is poised for growth and, the technology is increasingly being embraced across businesses as well as consumers. Complementing the ecosystem are the futuristic technologies such as AI, ML, advanced analytics and immersive media that are aiding in the seamless adoption of SaaS, IaaS and PaaS offerings.”
In order strengthen India’s cloud market story, Ghosh said, “Innovation to reduce the cost of services and thus, a wider usage of cloud. This report will be a ready reckoner for all to understand the imminent need for Cloud and the underlying opportunities.”
