STAMFORD, Conn., October 12, 2017

Public Cloud Services Market in India Forecast to Reach $1.9 Billion in 2017

The Forecast/ Current Scenario: Public cloud infrastructure as a service (IaaS) continues to be dominated by the hyperscale providers and their ecosystems that are driving growth, according to Gartner, Inc. The public cloud services market in India is projected to grow 43 percent in 2017 to total $1.9 billion (see Table 1).

Analyst Take:

"Ongoing new entries into the public cloud managed service provider and migration services space indicate continued overall growth in net new and migrated workloads," saidSid Nag , research director at Gartner. "Hybrid cloud solutions will continue to drive overall cloud adoption and overall IaaS trajectory at the same rate as past quarters."

The highest growth will continue to be driven by IaaS which is projected to grow 42 percent in 2017, followed by 33.5 percent in platform as a service (PaaS) and 33.3 percent in software as a service (SaaS).

Worldwide demand for IaaS will continue with strong growth through 2021, which benefits the cloud related services market, such as development, implementation, migration services, etc. Gartner sees continued significant above-average growth for the big three hyperscale IaaS cloud providers.

The iPaaS market will continue to be the fastest growing segment within application integration and middleware (AIM) segment, and it is therefore the jewel in the crown of the integration software market.

Much of the worldwide growth will be driven by increasing adoption of cloud applications, mainstream organizations building their hybrid integration platforms, the relatively untapped SMB/mid-size markets, and geographies outside US such as India.

Table 1. India Public Cloud Services Forecast (Millions of U.S. Dollars)

Source: Gartner (August 2017)

Declining annual growth rates indicate the mainstreaming of cloud services in the market for IT spending generally. Approximately 18 percent of IT spending generally was directed to cloud in 2016 worldwide and is expected to increase to 21 percent in 2018. In 2016, approximately 17 percent of the total addressable market for cloud infrastructure, middleware, application and business process services shifted to the cloud. By 2021, cloud shift for these markets will increase to 28 percent worldwide. Absolute growth rates for cloud will continue to be strong, while annual growth rates for each cloud segment decline.

Gartner clients can learn more in the report: "Forecast: Public Cloud Services, Worldwide, 2015-2021, 2Q17 Update ". Additional analysis on driving business performance will be presented during Gartner Symposium/ITxpo 2017 , the world's most important gathering of CIOs and other senior IT executives. IT executives rely on these events to gain insight into how their organizations can use IT to overcome business challenges and improve operational efficiency. Follow news and updates from the events on Twitter using #GartnerSYM .

Gartner Symposium/ITxpo

Upcoming dates and locations for Gartner Symposium/ITxpo include:

October 23-26, Sao Paulo, Brazil

October 30-November 2, Gold Coast, Australia

October 31-November 2, Tokyo Japan

November 5-9, Barcelona, Spain

November 13-16, Goa, India