Even as several reports point out the accelerated adoption of cloud, the latest report by IT Industry body NASSCOM expects India's Public Cloud market to grow at a compounded annual growth rate of 30 per cent over the next five years led by small and medium businesses (SMBs). India's Public Cloud market which currently stands at Rs 17,000 crore is expected to reach around Rs 63,000 crore by 2025.
According to the 'SMB Cloud Adoption in India: Towards a Cloud First nation' report, SMBs in India are in the process of becoming digitally savvy with over 60 per cent of such businesses surveyed indicating adoption of cloud, though with varying degree of maturity. In FY19, SMBs accounted for $952 billion in revenues or nearly 34 per cent of the Gross Domestic Product. The sector also employs over 110 million people directly and creating jobs for several millions indirectly. Though the COVID-19 pandemic has led to a massive unemployment in the sector along with other structural issues like liquidity crunch, lack of demand and lack of an alternative operational model, according to the findings of the report, those small and medium businesses that have an online presence have shown greater resilience and are expecting to see short-term revenue gain. "As India aims to become a cloud-first nation and with the government's push for cloud adoption by MSMEs, it will be crucial for SMBs in India to think of themselves as Digital Enterprises and lead the E-revolution for India," Said Debjani Ghosh, President, NASSCOM.
While technology-first segments like e-commerce, IT-BPM firms, banking finance and insurance firms are leading the cloud adoption, media & entertainment, retail, automotive, healthcare and manufacturing verticals are also catching up. While business could drive nearly 25-30 per cent productivity improvement and 15-20 per cent reduction in operational costs by adopting cloud, the lack of management support, talent and capital still remain as some of the key constraints in its large scale adoption.