Cloud Infrastructure Market in India 2024-2029

Cloud computing involves the delivery of computing services such as servers, storage, software, databases, networking, and analytics to the customer over the internet (generally referred to as ‘the Cloud’). Cloud infrastructure refers to the software and hardware components including servers, software, network devices, ethernet switches, and storage, among other resources, that support the entire computing requirement.

The cloud infrastructure market can be segmented based on their type, end-user vertical, and deployment type:

Based on type, the market has been categorized as Infrastructure-as-a-Service (IaaS), Software-as-a-Service (SaaS), and Platform-as-a-Service (PaaS). By end-user vertical, the market has been divided into IT/ITES, e-commerce, communication and media, telecom, manufacturing, government, transport and logistics, retail (excluding e-commerce), BFSI, and others.

Market trends:

In the traditional model, data is transferred to a remote server for processing. However, in Edge AI computing, a compact and streamlined computing environment is established near the data source. This decreases latency and allows real-time analysis and informed decision-making.

Multi-cloud and hybrid solutions incorporate public cloud services from multi-providers, allowing portability across cloud infrastructures. Hybrid cloud solutions help to manage data storage complexities more effectively. The combination allows companies to leverage the current infrastructure while at the same time, adopting security and achieving scalability.

Market drivers:

Increased adoption of digital technologies across retail, healthcare, and financial services is boosting demand for cloud services. Companies are transitioning from traditional data centers to cloud infrastructure to enhance scalability, efficiency, and innovation.

Government programs like "Digital India" and "Make in India" have encouraged cloud adoption, especially among small and medium enterprises (SMEs), to enhance digital infrastructure and foster tech innovation.

Key deterrents to the growth of the market:

Performance is a major factor when it comes to the cloud infrastructure market. Players in the space face challenges as it can drive away users and decrease revenue if performance is not up to the market. Even minor hindrances while loading an application or web page can reduce profits significantly.

Competitors must strive hard to provide the best user experiences every time. Challenges include inefficient load balancing and fault tolerance.