Public cloud services revenue to grow 24% in 2019: Report
Public cloud services revenue will grow 24 per cent to USD 2.4 billion in 2019 and will make India the third fastest growing markets in the world, a report said Tuesday.
Public cloud services revenue will grow 24 per cent to USD 2.4 billion in 2019 and will make India the third fastest growing markets in the world, a report said Tuesday. China will be fastest growing market with a 33 per cent growth, followed by Indonesia with 29 per cent, consultancy firm Gartner said. However, even after the impressive growth, India's overall revenue share will only be 1.2 per cent of the global public cloud services, it said, adding there are nine countries growing faster than the world average of 16 per cent revenue growth.
"The shift from 'cloud first' to a 'cloud only' model is pushing organizations in India to increase their spending on public cloud services to advance their digital business initiatives," its Research Vice President Sid Nag said. "Disinvestments in new data centers are also one of the early signs of this move," he added. The firm said a survey of Chief Information Officers of companies done by it validates the rising move to cloud in India, with 34 per cent expecting to increase their spending on cloud services in 2019.
"Organizations want to reduce capital expenditure spend by consolidating existing data centers and halting the buildout of new ones," Nag said. The research firm is projecting the overall public cloud service revenue to grow 24 per cent to USD 3.04 billion in 2020, the statement said.
The company said spends on security and analytics are driving the public cloud services revenue growth and added that the move to digital is forcing Indian organisations to increase their spending on security. "We've witnessed an increase in the number of targeted attacks on Indian organisations compared to a few years ago," Rajpreet Kaur, the Principal Research Analyst, said.