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Public cloud infrastructure as a service (IaaS) continues to be dominated by the hyperscale providers and their ecosystems that are driving growth, according to Gartner. The public cloud services market in India is projected to grow 43% in 2017 to total USD 1.9 billion (see Table 1).
The highest growth will continue to be driven by IaaS which is projected to grow 42% in 2017, followed by 33.5% in platform as a service (PaaS) and 33.3% in software as a service (SaaS).
Worldwide demand for IaaS will continue with strong growth through 2021, which benefits the cloud related services market, such as development, implementation, migration services, etc. Gartner sees continued significant above-average growth for the big three hyperscale IaaS cloud providers.
The iPaaS market will continue to be the fastest growing segment within application integration and middleware (AIM) segment, and it is therefore the jewel in the crown of the integration software market.
Much of the worldwide growth will be driven by increasing adoption of cloud applications, mainstream organizations building their hybrid integration platforms, the relatively untapped SMB/mid-size markets, and geographies outside the US such as India.
Declining annual growth rates indicate the mainstreaming of cloud services in the market for IT spending generally. Approximately 18% of IT spending generally was directed to cloud in 2016 worldwide and is expected to increase to 21% in 2018. In 2016, approximately 17% of the total addressable market for cloud infrastructure, middleware, application and business process services shifted to the cloud. By 2021, cloud shift for these markets will increase to 28% worldwide. Absolute growth rates for cloud will continue to be strong, while annual growth rates for each cloud segment decline.
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