New Delhi, Jun 8 (IANS): After growing 53 percent at a compound annual growth rate (CAGR) in 2010-2014, the public cloud computing market in India is estimated to touch Rs.2,434 crore in 2014, a study by CyberMedia Research India said Tuesday.
The study - India cloud computing market review 2011, May 2011 edition - a survey of "users" and "non-users" of cloud computing showed that penetration amongst Indian enterprises was four percent in 2010. This is expected to rise to 6.8 percent for all large and mid-size enterprises in the country by 2012.
Cloud computing refers to the on-demand provision of computational resources - data and software - through a computer network, rather than from a local computer.
"Cloud computing is witnessing widespread interest from the vendor-service provider-channel community on the one hand and business leaders and chief information officers on the other," said Kamal Vohra, lead analyst of India software and IT services research at CyberMedia Research.
"This is fuelled by the strong belief that cloud computing will allow a large number of small and medium business enterprises to adopt the same enterprise class software and technology solutions, which were earlier the exclusive preserve of large enterprises," he added.
According to Vohra this, in turn, is expected to allow the market for software solutions to open up as large, upfront capital investments in IT infrastructure can be converted into smaller, manageable 'pay-per-use' annuity payments.
The study also sought that the overall India security-as-a-service (SaaS) market is expected to touch Rs.465 crore by end 2011, a growth of 50 percent over 2010.
The Indian Telecom Service Providers (TSPs) and Internet Service Providers (ISPs) are also realising the business opportunities offered by the new "cloud computing" paradigm.
Indian telcos such as Reliance Communications, Tata Communications and state-owned BSNL have announced plans to address this emerging opportunity.
"Telcos and ISPs are well positioned to offer cloud services with ease since they already have their data centers and bandwidth pipes in place, both of which play a pivotal role in delivering cloud services," said Apalak Ghosh, analyst, emerging technologies, India Software and IT services research, CMR.