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Gartner Forecasts End-User Spending on Public Cloud in India to Grow 29% in 2021

Analysts Discuss the Opportunities for Public Cloud in India During Gartner IT Symposium/Xpo 2020 India, November 23-25


End-user expenditure on public cloud services in India is predicted to reach a total of US$4.1 billion by 2021, up 29.4% in 2020, according to Gartner, Inc's latest forecast.


During the Gartner IT Symposium/Xpo India, which takes place virtually through Wednesday, the researchers discussed the prospects for the Indian IT market.

“The onset of the COVID-19 pandemic was the starting point of the Cloud 2.0 era,” said Sid Nag , research vice president at Gartner. “Indian enterprises were not ready for the large scale of remote work. However, public cloud delivered on its promise of scalability, cost efficiency and business resilience for Indian enterprises during this critical time in 2020. As digitalization efforts further evolve in the country, public cloud will become a must have technology for Indian enterprises.”


In 2021, expenditure on cloud infrastructure and managed services will account for 8% of the total Indian IT expenditure. The low entry costs of public cloud services will have a significant impact on the price-sensitive Indian CIOs, increasing their spending on this technology.

Although the Segment of Cloud Application Services (SaaS) is expected to be the largest segment on the Indian public cloud service sector in 2021, the cloud infrastructure services (IaaS) will grow by 44.6%.


Table 1. India Public Cloud Services End-User Spending Forecast (Millions of U.S. Dollars)