India public cloud market to reach ₹63,000cr by FY2025, says Nasscom
India's public cloud market stood at ₹17,000 crore in FY2020 and is expected to grow at about 30 per cent CAGR to reach ₹63,000 crore by FY2025, a report by industry body Nasscom said. Also, small and medium businesses (SMBs) can account for 28-30%of the cloud market by 2025, it said.
The report titled 'SMB Cloud Adoption in India: Towards a Cloud First nation' showcased how SMBs are at the cusp of digital transformation with cloud adoption as the catalyst. In a survey of 1,000 SMBs in India, 60% said they are already using cloud, though almost half are at early stages of adoption. Best-in-class SMBs that adopted cloud have been able to drive 25-30% productivity improvement and 15-20% reduction in operational costs.
Security, analytics and offline to online are the three major opportunity segments for cloud adoption, the report said. More than 50% of the respondents cited lack of management support, talent and capital as key constraints for cloud adoption.
"The COVID-19 pandemic has severely impacted the SMB segment and they have struggled with liquidity crunch, lack of demand and lack of an alternative operational model. However, according to the report findings, SMBs that have an online presence have shown greater resilience and are expected to see short-term revenue gain," Nasscom said.
Technology adoption can help SMBs become more resilient and better equipped to handle disruption and also enhance their global competitiveness, it added. Cloud computing is one of three fundamental technologies in this digital transformation journey, the other two being big data analytics and cybersecurity, it said.
"As India aims to become a cloud-first nation and with the government's push for cloud adoption by MSMEs, it will be crucial for SMBs in India to think of themselves as Digital Enterprises and lead the E-revolution for India," Nasscom President Debjani Ghosh said.