New Delhi, Dec 17 (IANS): The overall Indian Public Cloud services market is expected to reach $17.8 billion by 2027, growing at a CAGR of 22.9 per cent for 2022-27.

According to the International Data Corporation (IDC), the Indian public cloud services (PCS) market, including infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS) solutions, and software-as-a-service (SaaS), revenue totalled $3.8 billion for the first half of 2023.

"Public cloud services in India have evolved beyond just cost savings and flexibility,” says Rajiv Ranjan, Associate Research Director, Cloud and AI, IDC India.

Enterprises are increasingly investing in modernising applications, developing cloud-native solutions, and exploring artificial intelligence.

“While enterprises are ramping up investments in GenAI, chatbots, and conversational AI tools, GenAI tools are specifically used for cost optimisation, application development, and workload testing use cases,” said Ranjan.

SaaS continued to be the largest component of the overall public cloud services market, followed by IaaS and PaaS in H1, 2023. The top two public cloud service providers continue to hold more than 40 per cent of the market.

Despite challenging economic conditions, leading cloud service providers are making significant investments in India. This move signals their confidence in the strong potential of the Indian market.

“Enterprises are increasingly relying on public cloud services as they drive digital transformation, and seek agility and operational efficiency,” says Harish Krishnakumar, Senior Market Analyst, Enterprise IT Services & Cloud, IDC India.