Sunday 12 January 2014

Cloud Computing in India - Opportunities and Way Forward

 Innovation in IT industry has always been faster compared to other industries. It has resulted in the industry witnessing a series of transformations over the last 50 years. Technology transformations started with mainframe computers than moved on to minicomputers, PCs and the web. The next wave of transformation in IT industry is cloud computing. We have already seen the success of cloud computing in the consumer world. Companies such as Facebook have grown over the last 5 years to reach over 400 million active users. The company is today valued at more than USD 15 billion dollars. The growth, revenue and the market valuation was only possible by using all three corner stones of cloud computing i.e., technology innovation, delivery model innovation and business model innovation.
However, there are few concerns with the adoption of cloud computing as well. Data security and lack of control on IT environment are the key concerns of CIOs. Like any transformational initiative, adoption of cloud also faces internal resistance to change as it alters the makeup of IT organization. Cloud changes how IT departments buy or develop, deploy, maintain and support applications. In the near future, these challenges will be resolved through better technology, transparency, cost, regulations and changes in mind set of the customer. Despite challenges and concerns, CIOs are aware about opportunities and benefits of cloud computing and related business models. In a recent survey conducted across 240 CIOs, more than 70 percent agreed to adopt cloud in the near future.

India has a legacy of jumping technology curves. The precedent exists in the telecom sector and now DTH is also witnessing transformation. It is expected that cloud would also show the similar behavior. The companies that are currently not adopting IT and don\'t have major investments in datacenters and server farms are expected to shift directly to the cloud model. There are ample opportunities in every industry. Verticals such as retail, manufacturing, banking, education, and healthcare will rely upon cloud services for better reach. The key themes for most opportunities are cloud, mobile, market place, price discovery, collaboration and analytics.

Cloud computing and related business models will act as a leveller for Indian ISVs. Cloud has just not opened up opportunities for Indian ISVs. It has also opened up interesting opportunities for large service companies both in traditional services and services that will drive non-linear growth. In terms of traditional opportunities, cloud has helped Indian services companies to enter into areas such as SaaS enablement.


Cloud is opening up new windows of opportunities for Indian companies both from global as well as domestic opportunity stand point. Having realized the immense potential of cloud, it is essential for companies to come together and enable collaborative innovation to address both India and global market needs. The key focus should now be on developing the ecosystem. It should include developing talent for cloud development, connecting start up ISVs with large system integrators, enabling start ups on the cloud market places and finally, influencing government policies to become cloud friendly. the near future, this ecosystem together with Indian capabilities of exporting business models will provide the right mix to leverage opportunities created by cloud.

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