The cloud computing market in India is expected to rise at an outstanding 24.3% CAGR and reach a startling $17 billion by 2025, marking a remarkable surge. This rapid growth results from the fast transition to cloud-based technology and is not merely a statistic. It is driven by the extensive digital transformation that is occurring across industries. The Indian cloud market alone was valued at $7–10 billion in 2023, and experts predict it will grow faster as it follows the global trend. The services industry is expanding far quicker than anticipated as the business world becomes more cloud-friendly. However, what is triggering this rise? And what do businesses need to know to manage this cloud evolution successfully?
What’s driving this cloud adoption boom?
The market for cloud services in India
has been expanding exponentially. There are multiple factors contributing to
this surge:
Digital
transformation
Cloud adoption is rising due to
the government's "Digital India" initiative and the private sector's
drive for digital-first business strategies. According to a recent KPMG report,
65% of Indian businesses are increasing their efforts at digital
transformation, with many of them mainly depending on cloud services to remain
competitive.
Rising investments
F&S predicts that cloud services
in India will grow 25% per year over the next five years due to significant
investments from international firms.
Growth of
SMEs and Startups
As of 2024, India has established
50,000 tech businesses, and the startup ecosystem is thriving. Many SMBs use
cloud services to scale more quickly, embrace flexible business models, and
reduce infrastructure costs.
Increasing
data consumption
An analysis projects that by 2026,
India's data usage will rise by 25% yearly, increasing demand for cloud storage
and data services. The nation's growing internet infrastructure speeds up the
adoption of cloud computing even more.
What are the factors that are driving cloud adoption?
Cloud services are getting widely
adopted in India due to several important factors:
Cost
efficiency:
Cloud computing has replaced Indian
organizations' on-premises infrastructure. According to a survey, 47% of Indian
businesses claimed that cloud services reduced their IT infrastructure expenses
by 25% to 30%.
Flexibility
and scalability
Businesses are rapidly expanding their
infrastructure as India's economy advances. By 2025, 85% of Indian companies
are expected to use hybrid cloud solutions to meet their needs for agility and
scalability.
Improved
collaboration
Cloud collaboration tools are critical
for real-time communication, as the popularity of remote and hybrid work
patterns has grown in recent years. According to a survey, employee
productivity has increased by 30% because 73% of Indian organizations use cloud-based
collaboration tools more often.
Compliance
and security
Cloud providers are providing
substantial protection to counter growing cyber threats. According to 92% of
Indian organizations, advanced encryption and multi-layered defenses have
improved security.
AI and big
data integration
India's expanding tech sectors fuel the need for AI-driven solutions. The fact that 35% of India's cloud market will be AI-powered by 2027 will highlight advanced tech integration.
What should you look for when switching to cloud services?
Given India's growing number of cloud
providers, selecting the appropriate partner is essential. The following are
important factors when opting for cloud services:
Security
features
According to a Cisco poll, security is
the most important consideration for 60% of Indian firms when choosing a cloud
service provider. Verify that your service provides multi-factor authentication
and robust encryption and conforms with industry standards (including GDPR and
HIPAA).
Uptime and
reliability
According to Statista, 97% of firms
require 99.9% uptime and cloud outages can cause operational disruptions.
Ensure your provider's service-level agreements (SLAs) guarantee this
reliability.
Cost
structure
Although cloud services are typically
reasonable, it's essential to comprehend the pricing structure. According to
Gartner's 2024 study on cloud services, 32% of businesses face unexpected costs
due to hidden resource misuse, storage, or data transport fees. Be sure to read
the fine print.
Customer
service and support
An IDC survey found that 68% of
businesses stated that customer service is crucial when selecting cloud
providers. Choose a supplier that offers timely, 24/7 service to ensure smooth
operations.
Integration
capabilities
A smooth adoption of cloud computing
requires a seamless interface with existing systems. According to a
TechRepublic poll, 62% of Indian businesses ranked ease of integration as their
top priority, highlighting the significance of API compatibility with key
business tools.
What are the key
cloud service trends to watch?
Several trends could change the
landscape as the cloud market develops further:
Multi-cloud
and hybrid strategies
Multi-cloud and hybrid configurations
are becoming increasingly popular among businesses. A study claims that 57% of
Indian companies either utilize hybrid cloud models now or intend to do so to
boost flexibility and lower the risks associated with relying solely on one
cloud provider.
AI-powered cloud
services
Since machine learning and artificial
intelligence are becoming highly crucial to corporate operations, cloud
services are developing to incorporate these features. India's cloud services
AI industry will be $10.7 billion by 2025.
Edge
computing
The growth of IoT devices is driving
the need for low-latency processing. According to Gartner, India is expected to
play a significant role in the global edge computing industry, reaching $16.7
billion by 2025.
Cloud
Security
Cloud security is becoming crucial as
cyber threats are evolving significantly. Cloud-related security incidents are
predicted to rise by 25% a year. 83% of businesses want to use advanced cloud
security solutions, such as Zero Trust Architecture (ZTA), by 2026.
Cloud for
SMBs
Cloud computing is not just for big businesses. According to a PwC India survey, 72% of Indian SMBs expect to use the cloud by 2025 due to its cost-effectiveness, scalability, and flexibility.
Wrapping up
The cloud market in India is expected
to grow to $17 billion by 2025 because of data-driven businesses, increased
demand, and rising expenditures on digital technologies. A dynamic workforce,
government efforts, and the increasing demand for scalable, affordable
solutions are some of the main factors driving growth.
Businesses facing digital
transformation must choose the right cloud provider. At ESDS, we provide
cost-effective, scalable, and secure cloud solutions customized to meet your
needs. Our experience and cutting-edge infrastructure guarantee success whether
you're implementing cutting-edge technologies like artificial intelligence,
growing your cloud infrastructure, or moving to the cloud.
Visit us: https://www.esds.co.in/cloud-services
For more information, contact Team ESDS
through:
🖂 Email: getintouch@esds.co.in; ✆ Toll-Free: 1800-209-3006; Website: https://www.esds.co.in/