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Adoption of Cloud Services in Indian SMBs

India SMB cloud market: 25% CAGR between 2012-2016

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2014-03-05 09:40:03 - Adoption of Cloud Services in Indian SMBs - a new market research report on

Adoption in the India SMB cloud services market is to grow at a CAGR of 16-25 percent over the period 2012-2016. One of the key factors contributing to this market growth is the need to enhance operational efficiency. The adoption of cloud services in Indian SMBs survey has also identified the increasing adoption of software-as-a-service. However, the lack of data security could pose a challenge to the growth of this market.

A major trend in this market is the increasing adoption of SaaS and NaaS. According to 82.6 percent of the respondents, the rate of adoption of SaaS is expected to be high during the forecast period. More than 44 percent of the respondents believe that Indian SMBs are expected



to adopt SaaS rapidly. However, 50 percent of the respondents are expecting that the adoption of PaaS will be slowed down during the forecast period. Increasing adoption of hybrid cloud is an emerging trend in the Cloud market for SMBs in India. Of the total respondents, 59.3 percent expect that the adoption of hybrid cloud services will be high during the forecast period compared to the current scenario. In addition, many respondents commented that there will be rapid adoption of public cloud by Indian SMBs than private cloud during the forecast period.

One of the major drivers is the increasing need to enhance operational efficiency. According to 93 percent of the respondents, many Indian SMBs are adopting cloud services to enhance their operational efficiency. Currently, factors such as need for large infrastructure, integration of cloud services provided by multiple vendors, and failure to adhere to service-level agreements (SLA) are hindering the operational efficiency of SMBs in India. However, such obstacles can be overcome by the adoption of cloud services.

Concern over the security of enterprise data is one of the major challenges for the adoption of cloud services among SMBs in India, showing the conservativeness of Indian SMBs. Many Indian SMBs are afraid about the loss of data and breaches in the security of their services. Hence, they do not prefer to adopt cloud services.

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