Total Cloud Market in India estimated to reach a Market Value of $ 4.5 billion by 2015

According to a study Private Cloud Landscape in India released by EMC Corporation and Zinnov Management Consulting, a management consulting firm in July 2011, total cloud market in India will reach a market value of $ 4.5 billion by 2015. The cloud market currently stands at $ 400 million.

According to the study private cloud adoption will dominate and account for $ 3.5 billion in revenues, growing at over 60 percent. The study estimated that private cloud deployments could result in potential savings of up to 50% on the IT investments on average, when compared with a legacy IT model, with cost optimization in areas such as telecom and networking, facilities and fabric, hardware, software, internal labour and external IT services.

The study based on a comprehensive survey of over 100 CIOs and IT decision makers in India across industry verticals pointed out that there is an increased preference of cloud adoption over the next five years in India.
In cloud computing, a company can store applications and information in its data centers, rather than on the local servers. The information stored and processed on computers in the data centers, can be tapped remotely through a personal computer, cellphone or other device. Cloud computing is expected to reshape the Indian IT market by generating new opportunities for IT vendors and driving changes in traditional IT offerings.

The study opined that companies that are not adopting IT today and don't have major investments in data centers and server farms will directly move into the cloud model. The total cloud spend as a percentage of the total IT spend as such is expected to rise from 1.4% in 2010 to 8.2% in 2015.

IT/ITeS, Telecom, BFSI, Manufacturing and Government sectors are expected to contribute largest to the cloud market in India, with nearly 78% of the total market.

Private cloud market is likely to create 1 lakh jobs by 2015 from 10000 today thereby providing an opportunity for students and the workforce.

The study recommended companies to invest in competency building internally to take advantage of cloud computing technologies. It estimated that the skilling and re-skilling market in India will grow fast as cloud computing becomes critical to IT strategies. Leading public and private educational institutions, along with IT enterprises are expected to play a key role in enhancing workforce skills to match the industry demand for cloud computing.