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India’s ‘data eruption’ to cause boom in private cloud

07 Feb 2019

India’s IT industry is up there among the fastest evolving in the world.

In light of this, IDC has unveiled its top 10 predictions to impact the cloud initiatives of India organisations through 2023.

According to IDC, at a time of increasing costs of infrastructure and complexities of managing them, enterprises in India are investing in cloud and are in early stages of realising the benefits.

While the area is experiencing rapid growth, the need for having agile businesses through simplified IT and comprehensive security is still far from reality for most organisations. Based on IDC analysis, business agility and/or the need for speed from IT and improved security are the top most important trigger factors for considering cloud, in contrast to cost.

IDC India Cloud and AI associate research manager Rishu Sharma says the market is in need for more consistent and standardised automated cloud resources to enable developers and line-of-business to execute at speed and in a more cost-effective manner.

"The IT environments for organisations in India is becoming more complex with multiple public clouds, private clouds, and traditional systems needing to be interconnected, integrated, and collectively managed,” says Sharma.

“Most Indian organisations are clustered around early stages of cloud maturity and find it challenging to move ahead in the adoption curve. As Indian organisations move towards a cloud-first strategy, enterprises are preferring cloud solutions for their new capability, capacity and functionality.”

Below are IDC’s predictions impacting the technology buyers and suppliers in cloud in India over the next 48 months:

#1 Mega-platforms: By 2023, the top 4 clouds ("mega-platforms") in India will be the destination of choice for 50 percent of workloads, while lock-in will be avoided through multi-cloud and cloud-native approaches to achieve portability.

#2 Cloud native: By 2022, 40 percent of new enterprise applications in India will be developed cloud-native, based on a hyper-agile architecture, but only 10 percent of those environments will have machine learning capabilities built in.

#3 Multi-cloud management: By 2023, 55 percent of India 500 organisations will have a multi-cloud management strategy that includes integrated tools across public and private clouds.

#4 Consumption-based deployment model: By 2021, more than 30 percent of enterprise IT operations spend in India will be consumption-based, opting for a public cloud platform as a lower-risk option to manage complexity and aligning cost to consumption.

#5 Redefining the edge: By 2023, more than 30 percent of organisations' cloud deployments in India will include edge computing to address bandwidth bottlenecks, reduce latency, and process data for decision support in real time.

#6 SaaS and cloud verticalisation: By 2022, organisations in India will spend more on vertical SaaS applications, excluding desktop and internal employee productivity apps, than horizontally designed applications.

#7 Private cloud expansion: By 2020, 60 percent of enterprises in India using public cloud will also use an enterprise private cloud platform; the majority of these platforms will support delivery of higher-layer PaaS and SaaS functionalities.

#8 Data eruption: By 2023, 40 percent of India 500 enterprises will be AI-enabled, with over 40 percent of enterprise applications workflows aided by AI to better utilise legacy data, real-time operational data, and third-party data feeds.

#9 Managed cloud services: Enterprises' needs in India to optimise ROI, reduce budgets, and cope with the scarcity of cloud experts drive spending on managed cloud services to nearly US$1.2 billion by 2022 and almost 25 percent of technology outsourcing.

#10 Life-cycle automation: By 2022, 30 percent of organisations in India will have invested in automation, orchestration, and development life-cycle management of cloud-native applications to realise the cost benefits and operational efficiencies.

"The cloud has challenged many infrastructure hardware and software providers as a growing portion of enterprises source capacity through cloud services providers, shifting demand away from enterprise data centres and toward cloud service providers, hyperscale data centres," concludes IDC India Enterprise Solutions director Ranganath Sadasiva.

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