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COVID-19 impact: Public cloud spending to grow over 30% in India in 2021, says Gartner

End-user spending on public cloud in 2021 could reach $4.4 billion growing over 30 per cent compared to 2020 and is expected to reach $5.6 billion in 2022.

Rukmini Rao | April 29, 2021 | Updated 19:08 IST
COVID-19 impact: Public cloud spending to grow over 30% in India in 2021, says Gartner
As remote working sees an increase this year due to the second wave of COVID-19, the increased spending is likely to happen in DaaS and IaaS segments.

India's end-user spending on public cloud is set to grow 31.4 per cent year-on-year in 2021, helped by the COVID-19 pandemic, according to a forecast by global research and advisory firm Gartner.

The total end-user spending on public cloud is expected to grow to $4.4 billion in 2021 from $3.3 billion in 2020, Gartner said, adding that it will rise 26 per cent in 2022 to $5.6 billion.

As remote working sees an increase this year due to the second wave of COVID-19, the increased spending is likely to happen in desktop-as-a-service (DaaS) and infrastructure-as-a-service (IaaS) segments. "To build business resilience and minimise the impact of continued disruptions, investing in cloud is unavoidable," said Sid Nag, research vice president at Gartner.

India has seen a consistent double-digit growth in cloud spending over the last three years, Nag added.

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For the first time, spending on software-as-a-service (SaaS), and cloud management and security services is set to experience a double-digit growth in India, Gartner said. Cloud application services, and cloud management and security services are expected to grow 20.8 per cent and 18 per cent over last year, respectively, with a combined spending of $1.7 billion.

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

"SaaS has been pivotal in supporting the sudden increase in the mobile workforce, as well as customers in 2020," Nag said, adding that both the segments are expected to continue their double-digit growth in 2022.

According to Gartner, spending on e-mail and authoring declined by 0.2 per cent in 2020, however, this trend is expected to reverse in 2021. As remote workers in organisations continue to work from home due to the pandemic, more business is being conducted using email and collaboration tools, which is expected to drive the growth of these services.

Also read: Bharat Biotech cuts Covaxin price to Rs 400 per dose for states

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