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Gartner Forecasts $ 7.3 Billion End-User Spending on Public Cloud Services for 2022

CIO Insider Team | Wednesday, 3 November, 2021
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According to a recent report by Gartner Inc., end-user spending on public cloud services in India is expected to reach $ 7.3 billion in 2022, up 29.6 percent from 2021.

Gartner’s research vice president Sid Nag says that, "since the outbreak of the global pandemic, public cloud services adoption has surged. The pandemic was a tipping moment for Indian enterprises to recognize the full benefit of public cloud".

Nag believes that, “policy infrastructure is emerging as a key driver to public cloud growth in India”. He gives an example of the recently launched public cloud government programs Meghraj and Cloud Vision for India 2022 which will be beneficial to small and medium firms, as well as those that are still in the early stages of cloud adoption”.

In addition, measures aimed at developing a competent cloud workforce in collaboration with private IT service providers will aid the government's efforts to expand the country's public cloud ecosystem.

“The next step in the growth of cloud in India will be the adoption of cloud native technologies. Indian CIOs will look to re-imagine and refashion their applications and workloads using containers and micro services as well as artificial intelligence (AI) and machine learning (ML)”, adds Nag.

While still in growth, Indian end-user expenditure on public cloud would rise gradually next year than the 34.6 percent growth predicted in 2021. Indian CIOs are anticipated to prioritize cloud system infrastructure services (IaaS) in their cloud investments. In 2022, this segment is expected to be worth $2.4 billion, up 40 percent from 2021. In 2022, IaaS will account for 32.3 percent of all public cloud service investments.

The Cloud business process Services (BPaaS) which is at $ 1,414 million this year is expected to grow at 12.4 percent and is predicted to grow at 8.2 percent to reach at $ 1,895.6 million next year.

Cloud application infrastructure Services (PaaS) is currently at $ 904.2 is seen to have a 39.7 percent growth this year as it leaps with 34.1 percent to reach at $ 1,137.2 next year.

Cloud application Services (SaaS) is expected to have a 21.3 percent rise to reach at $ 1,786.9 million this year and is expected to grow at 21.4 percent to reach $ 2,169.2 million in 2022.

Cloud management and security is said to grow at 19.2 percent to reach $ 406.2 million this year while it’s said to pace at 23.7 percent to reach at $ 502.4 million next year.

Cloud system infrastructure Services (IaaS) is expected to achieve $ 1,690.8 million at a percentage of 57.2 this year and it’s predicted to reach $ 2,367.5 million at 40.0 percent the coming year.

Nag went on to say that, “public cloud growth continues to be driven by organizations that want to modernize their IT and reduce their capital expenditure. The desire for agility and innovation in both business transformation and IT operations is also fueling the growth of public cloud”.

“The next step in the growth of cloud in India will be the adoption of cloud native technologies. Indian CIOs will look to re-imagine and refashion their applications and workloads using containers and micro services as well as artificial intelligence (AI) and machine learning (ML)”, adds Nag.



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