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India Public Cloud End-user Spending to Reach $4.4B in 2021

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The end-user spending on Public Cloud services in India will reach $4.4 billion in 2021, growing 31.4 percent as compared to last year, a Gartner report said on Thursday.

For the first time, spending on SaaS and cloud management and security services will experience double-digit growth in India.

“SaaS has been pivotal in supporting the sudden increase in the mobile workforce, as well as customers, in 2020. Learning from this , Indian CIOs will continue to build on the above trend as they move towards a composable business environment,” said Sid Nag, research vice president at Gartner.

Within SaaS, customer experience and relationship management and content services will be the highest growing segments in 2021, forecast to grow at 24.9 percent and 26.1 percent.

The continued trend of increased remote workers in 2021 will lead to an increase in spending on desktop-as-a-service (DaaS) and infrastructure-as-a-service (IaaS).

These segments are forecast to grow 47.7 percent and 52.2 percent, respectively.

“Indian CIOs saw the benefits of cloud during the first wave of the pandemic in 2020,” said Nag.

“To build business resilience and minimize the impact of continued disruptions, investing in the cloud is unavoidable. India has experienced consistent double-digit growth in cloud spending over the last three years, the pandemic only expedited the shift,” he said in a statement.

In 2020, spending on e-mail and authoring declined 0.2 per cent, however, this trend will reverse in 2021.

E-mail and authoring is expected to grow 25.1 per cent this year.

“With the increase in remote workers by organizations due to the pandemic, more business is being conducted using email and collaboration tools, which will drive the growth of these services,” the report mentioned.


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