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Cloud: Transforming the Indian IT industry

Anuj Sharma

Businesses have adapted their priorities to the current economic climate, with more Indian enterprises changing how they view IT. Many of the big telecom providers are using their existing IT infrastructure to offer public cloud services such as Software as a Service

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(SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS).

Small and medium-sized businesses (SMBs) are evaluating public cloud offerings to save on the cost of physical IT infrastructure, allowing these companies to focus on their main business. Enterprises are in the process of cloud transformation by consolidating computers, storage and network for optimal and efficient use of resources.

The latest cloud research by International Data Corporation (IDC), "India Cloud Market Overview, 2011-2016," estimates the Indian cloud market will grow more than 70% this year. 

"We have definitely seen cloud cross the inflexion point at the end of 2011; use cases especially in IaaS and SaaS areas provide testimony to that. With proper messaging from key vendors and due diligence of opportunities that exist in the cloud delivery models, the market will grow much faster in the coming years" said Nirupam Chaudhuri, research manager of software and IT services at IDC India. 

In addition, business revenue spurred by cloud innovation will reach $1.1 trillion by 2015, IDC said in its recent report "Cloud Computing’s Role in Job Creation." IDC found that 6.8 million jobs will be created in India and China and 1.2 million will be created in the US. The rest of the Asia-Pacific region will see 2.9 million cloud jobs, while Europe, the Middle East and Africa will have 2.9 million jobs generated, according to the report.

Areas where cloud computing will affect (or is already affecting) the Indian IT industry include:

  • Increase in demand for cross-domain skilled resources. With the increase in adoption of public, private and hybrid cloud, the need for people with cloud skills will increase. Those involved in cloud infrastructure design, implementation and administration should have an understanding of server, network and storage area network technologies.
  • More IaaS public cloud offerings available. The increase in IT companies and Internet service providers offering IaaS has helped SMEs realize economic benefits.
  • The software industry taking is taking advantage of PaaS. With many Indian SME IT organizations developing software for enterprises across the globe,  PaaS  provides developers different development platforms with less capital expenditure involved.
  • SMEs and larger enterprises are taking advantage of SaaS. With the SaaS providers such as Microsoft and Amazon entering the Indian market, more companies are considering SaaS. Applications such as Microsoft Office 365 and SAP Business by Design let companies avoid the hassles of managing the complex IT applications while helping them saving money .

The transformation to private cloud is gaining momentum, but at slower pace compared to public cloud offerings. Private cloud involves more initial cost for new hardware, software suites and cloud skills. It also takes time for companies to realize the ROI of private cloud transformations.