Propelling India’s digital growth story

Government, healthcare, retail, supply chain and logistics, manufacturing and financial services will see an explosion in cloud adoption in India. We expect Indian cloud market to see an unprecedented growth 24% in the coming year.   Indian enterprises adopting public cloud are spending an average of ₹3.7 billion on public cloud in the past 12 months. In Forrester’s Infrastructure Cloud Survey, 2022, 73% of Indian enterprise cloud decision-makers using at least two cloud deployment models say they use hybrid cloud: 85% of those using public cloud use two or more vendors.

Key observations about the Indian cloud market:

• Public clouds to remain in demand with both large and medium sized enterprises.
• Startups in India have a cloud only policy and in general do not have any applications/ platforms in house.
• Enterprises planning for tech modernization or application portfolio rationalization adopt a cloud first or cloud only approach.
• Partners are key to success for large cloud migrations in Indian enterprises.
• Cloud native technologies are the new normal for Indian enterprises.
• Banks have been leading in migrating to hyperscalers for example, Axis bank announced plans to migrate 70% of their on-prem infrastructure to AWS.

Future of cloud in India:

• Finops is still very new in India. However, it will see major traction in the next 12 months. Cloud service providers are helping Indian enterprises to get on the Finops bandwagon by releasing accelerated Finops adoption roadmaps. These include helping in core capabilities like efficient cost allocations and reporting, building architectural efficiency and driving accountability throughout the system.
• Hyperscalers along with service providers will roll out custom Generative AI (Artificial Intelligence) enabled services. For example, TCS (Tata Consultancy Services) in partnership with Google announced the launch of a new offering – TCS Generative AI. Similarly, Wipro announced launch of its own Generative AI solution in partnership with Google. Mphasis announced its new business unit mphasis.ai which aims to integrate existing infrastructure solutions from leading hyperscalers with AI capabilities.
• Industry clouds will see greater adoption. There are few industry cloud offerings available in India now. However, MSMEs are keen to adopt industry clouds, as it helps them leapfrog the digital journey. There is a lot of potential for manufacturing, logistics, insurance, retail, and healthcare industry clouds in India. With more than 63 million SMEs, industry clouds catering to those markets will gain a lot of traction.

Refer our report The State Of Cloud In India, 2023 | Forrester for more information on the State of cloud in India.