“By 2021, 28% of all IT spending are to be used for cloud based infrastructure, application,
and business processing services. In particular, the SaaS area is expected to
have steep growth of more than 15% per year by the 2020.”
– Gartner (October 12, 2017)
Cloud services are constantly being launched for businesses and regular consumers, thus the size of global cloud market is growing with cloud specific data centers becoming erected all around the world. This year, the public cloud market is expected to reach 260 billion dollars and 400 billion dollars by 2020. (Gartner, Oct 12, 2017)
The movement of the cloud market
Companies no long wish to invest heavily into building the physical infrastructures of their own. Instead they operate by utilizing the resources as they see fit through the cloud environment and benefit from the efficiency. Successful business applications using cloud services can be found easily around us. For example, the company SUPERCELL known for their mobile game the “Clash of Clans” is a great example of a successful cloud usage. The company have started small but expanded their gaming services by becoming evaluated as providing pleasant gaming environment to anyone in the world. They understood and utilized their clouding environment, allowing a great scalability for their services.
“Indian elephant on the clouds”
Recently, cloud services has been blowing up in India as the Public Cloud Market grows. For strong IT countries like India, the growth of the cloud market might seem to be taken for granted, since it works as a backbone for IoT, Mobility, and AI technologies. However, this has been made possible by change of the Indian people’s tendency, the rapid shift of the India’s business environment, and the government’s promotional policy.
According to the BCG survey of India, ‘as the supply of smartphones increased, 62% of the mobile phone users in India are now using smart phones, and most of them use smart phones to surf the internet or watch videos.’ Even the patient minded Indian people are becoming more sensitive to the speed of content delivery through their smartphones, and they no long can tolerate the slow speed and the global cloud service providers are rapidly deploying data centers in key areas of India and aggressively pursuing marketing strategies.
Start-up India, Stand-up India!
In the 2016, the government of India announced the “Start-up India” policy, which provides various deregulation, simplification, and tax benefits for start-ups so that they can sustain their economy growth and create jobs. With the policy, start-ups receive an annual support of approximately 400 million dollar for start-up funds and cloud services, which can efficiently utilize the high-end infrastructure and software at low cost without significant initial infrastructure investments, are gaining popularity among the startup industries.
Additionally, there is a policy called ‘Digital India” which is one of the policies announced by the Indian government for their G2C (Government to Citizen) program, aims to eliminate the corruption within public services and lessen the information gap between urban and rural areas. Consider a scenario, if a government opens up a complaint website for over a billion people or develop a simple identity verification function via mobile, cloud technology will be perfect for the “digital India” policy. It is because with cloud technology it is not necessary to estimate the average access amount or the peak time connection increase, thus no need to calculate the investment required to support such usages. The Indian government is fascinated by the resilient and scalable characteristics of the cloud environment, and actively supports its business. In other words, the Indian elephant, who did not even know how to fly, is now staring into the clouds floating into the sky. The Indian elephant is now preparing to truly fly riding the clouds.
By regional expert Seong-Yoon Jeong senior engineer
Strategic Development_Samsung SDS