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India’s public cloud market to triple by 2018 : Gartner

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A newly released Gartner Report has finally re-affirmed, what we have been contemplating for quite some time now. The report says, India’s rapidly evolving public cloud market is poised to grow at a triple of the current rate, eventually becoming worth $1.9 Billion by 2018 (via TOI)

According to the figures calculated by Gartner, an American information technology research firm, cloud market in India is expected to reach upto $1.9 billion (about Rs 12,000 crore) by 2018, which is roughly the triple of the present figure. Gartner’s report cites the rapidly surging Indian e-commerce market and increase in the number of people drifting towards the internet, as primary drivers for this enormous growth.

Naveen Mishra, research director at Gartner said-

Early web content and e-commerce companies have used data centres in the US to address their primary requirements. However, as the number of internet users has swelled in India, web technology companies have increasingly shifted their servers to data centers in India, leading to significant demand for Indian data centre service providers.

India’s e-commerce players are the primary users of currently operating cloud services within the country, and they have all reasons to do so. Flipkart alone received a huge $2 Billion in total this year from existing and new investors, thus further expanding its already vast e-commerce business. Snapdeal, on the other hand, raised a staggering $627 Million from Japan’s Softbank while Amazon infused $2 Billion in its war chest to fight off with the local competitors in India. Furthermore, these e-commerce giants are not hesitating to acquire relevant start-ups, to make the battle intense.

The country itself is making extraordinary efforts to increase the availability of Internet to people in remote areas and establish a digitalized connectivity. In October, India welcomed the initiative of Internet.org which was led and inaugurated by Facebook founder Mark Zuckerberg. The country has also shown a great interest in Google’s project Loon which is working to provide Internet access through high-altitude balloons placed in the stratosphere.

Not to be forgotten, Microsoft last month talked about making use of White Space Spectrum in the country to contribute towards the effort of providing free internet access to every corner of the rural India. White space, in telecommunications, is referred to the frequencies allotted to a broadcasting service but is unused. The unused frequencies are considered to have potential for provide wireless broadband Internet access. Following the plans and current efforts, the proportion of Internet users in India is likely to hike exponentially.

To meet these requirements, Microsoft, IBM and a few local players are buckling up and are ramping up their capacities in the country. IBM has planned to add up another cloud data center to its already existing center in India. Serving the same objective, Microsoft said that it will invest Rs 1,400 crore to set up three data centres in India.

Local players are not lagging behind in any way to make the most of this opportunity. Reliance Communications has already kicked off the construction of its tenth data center in the country with an investment of $200 million.  Netmagic, an NTT Communications subsidiary, is building its ninth data centre in Mumbai and is exploring further opportunities to build another center.

Deepak Khanna, CEO, India Enterprise Business at Reliance Communications said-

We are investing into enhancing our cloud capabilities. In the last six months, we have partnered with Hitachi to offer cloud storage, Panasonic for cloudbased security surveillance, and with Polycom for cloudbased video conferencing. We expect an additional 2022% annual growth in business with the help of these services.

IMAGE : FLICKR / CC 2.0 / TOM RAFTERY

Senior Writer


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