Nasscom Cloud Next Wave of Growth in India 2019

NEXT WAVE OF
GROWTH IN INDIA
2019
CLOUD - NEXT WAVE OF GROWTH IN INDIA
About NASSCOM
NASSCOM is the industry association for the IT-BPM sector in India. A not-for-profit organization funded
by the industry, its objective is to build a growth led and sustainable technology and business services
sector in the country with over 2,500 members. NASSCOM Research is the in-house research and
analytics arm of NASSCOM generating insights and driving thought leadership for today’s business leaders
and entrepreneurs to strengthen India’s position as a hub for digital technologies and innovation.
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1
FOREWORD
The National Association of Software and Services Companies is proud to present a Report on the subject
of ‘Cloud – Next Wave of growth in India’
The world is on the cusp of experiencing a massive transformation under the Industrial Revolution 4.0.
The domination of the information technology sector, and the myriad of applications across the various
areas of lives of consumers has led to the explosion of information, the urge to communicate and the
continuous stream of data.
Cloud Computing has emerged as the next wave in computing and has been increasingly adopted across
businesses as well as consumers. While Software-as-a-Service offerings have always been dominant,
Infrastructure-as-a-Service and Platform-as-a-Service are gaining steam with the rise of use-cases across
futuristic technologies such as Artificial Intelligence, Machine Learning, Advanced Analytics, Immersive
Media and so on.
It is critical to note that consumers of Cloud across Enterprises and the Digital Natives continue to
demand affordability, which in turn is leading to the innovations in the technology supporting Cloud
computing. For instance, Edge Computing, Efficient Cooling Systems, Converged & Hyper-Converged
Hardware Infrastructure are some of the innovations that are helping providers reduce the cost of services,
making adoption widespread.
India continues to remain a market that is thriving under the dual-opportunity of serving domestic and
international demand as well as enjoying higher consumption of data with the advent of high speed
mobile connectivity. With these factors in play, the opportunity to build the Cloud market in India is
significant and promising.
The Government has a significant role to play, as do other enablers. Specific regulatory directions will
act as the necessary catalyst to the growth of Cloud in India. Protection of Data and Privacy is slowly
becoming the mainstay of the policy makers focus, which we believe will enable faith in the potential
buyer of Cloud services.
We wish you gain insights from this report, and welcome your feedback on the same.
Thanks
Debjani Ghosh
President, NASSCOM
2
ACKNOWLEDGEMENT
NASSCOM would like to acknowledge the support provided by Google in the making of this report.
We also acknowledge the support provided by Deloitte Touche Tohmatsu India LLP in conducting the
market research and analysis for preparing this report.
While the analysis has been conducted by Deloitte Touche Tohmatsu India LLP, the study was
commissioned by Google.
We would like to thank all our stakeholders– industry, government, research firms, etc. – for their valuable
contributions, without which this report would not have been possible.
We would also like to thank NASSCOM member organisations, who provided relevant data and insights
about various industry trends and developments.
Detailed list of participants have been listed in the appendix section.
3
BACKGROUND, SCOPE &

OBJECTIVES
Background, Scope and Objectives of the current and future
addressable Cloud, Public IaaS and SaaS market in India
OBJECTIVES OF THE STUDY
To understand the key Cloud computing types,

NASSCOM is an
market size both globally and in India, Cloud
industry body of the
adoption levels across industry verticals, key
IT-BPM industry in
demand & supply side drivers for Cloud uptake and
India that works with
challenges faced by the demand side enterprises
diverse stakeholders to
in India
build focused initiatives
that enable the growth
of the sector through
policy advocacy, skill
building, research,
startup programs, To assess the IaaS Global and Domestic ecosystem
facilitate business and emerging trends, its global & India market
and increase industry projections, the supply ecosystem evolution, key
outreach demand side drivers and challenges for the future
growth of IaaS market in India
To analyze SaaS demand and adoption levels

across various industry verticals and the key
challenges impacting the SaaS uptake in India
NASSCOM wishes
to communicate the
present and the future
state of the India Cloud
market and identify
the major technology
trends, issues and To review the current regulatory scenario and
concerns of the industry Cloud policy framework in India, the proposed
Data Protection Bill 2018, and analyze its impact,
on the Cloud industry in India
4
EXECUTIVE SUMMARY
Cloud Computing
Cloud computing refers to the provision of software, storage and computational power to customers
from remote data centers through the internet. The concept of Cloud has been around for two decades,
but has now become mainstream with the growing presence of “hyper scale” Cloud providers in big data,
analytics, artificial intelligence and IoT. The Indian Cloud market has a large opportunity for growth, as the
Cloud becomes more lucrative for the Indian SMEs, Enterprises and as the global demand for Cloud grows
providing India opportunity to emerge as a significant consumer and supplier, leveraging its cost and other
advantages.
Key characteristics include Global Cloud spending

on-demand self-service, estimated at USD 187 Bn.
multi-tenant business in 2018 and is projected to
model, digital network-based architecture, grow at 16.5% p.a. to reach
rapid elasticity, flexible, zero capex and USD 345 Bn. in 2022
measured pricing capabilities
Cloud spending in
Cloud spending in
India is estimated at
India is estimated
USD 2.5 Bn. in 2018
to grow at 30% p.a.
(Only 6% share of relevant IT
to reach USD 7.1 – 7.2 Bn.
spending compared to a global
in 2022.
average of 7.9% and average of
leading countries of 11.4%).
This growth is estimated on account of multiple factors (both demand

and supply) such as: Increased awareness of Cloud, consumerization of IT,
proliferation of start-up ecosystem, diverse landscape of supplier ecosystem,
increasing investments in infrastructure, talent, strategic partnerships and the
impetus from key digital-led Government programs.
5
Infrastructure-as-a-Service (IaaS)
With the advent of advanced solutions and computing, it is imperative to note that IaaS is showing excellent
potential growth
Tier II and rural markets in

India remain untapped due
to lack of access to quality
broadband, reliable power supply, stringent
land regulations and cumbersome permissions
procedures, etc.
India now has a globally Improved infrastructure

competitive IaaS supply facilities, economic benefits,
ecosystem, led by significant expansion increased innovation, vibrant start up
since 2015 (Large global IaaS players - AWS, Google ecosystem and connected ecosystem are
Cloud and Microsoft now operating IaaS Facilities driving IaaS uptake in India
out of India)
Indian IaaS
spending is estimated
Global IaaS spending
at only USD 1 Bn. (2018),
is estimated at
forecasted to grow at 25% p.a. to
USD 41 Bn. (2018) and
reach USD 2.3 – 2.4 Bn. in 2022
projected to grow at 25.5% p.a. to
reach USD 102 Bn. in 2022
6
Software-as-a-Service (SaaS)
There exists an opportunity for India to emerge as a significant player globally, as both Indian and global
demand grow
Re-skilling for
Lower cost of
advancements, Investing
workforce, abundant
in newer technologies and
talent availability, mature
partnering to bring advanced capabilities by
inside sales ecosystem, adoption of
SaaS Industry players can accelerate growth
futuristic technologies like AI, ML to
build world-class products, increased
investments in SaaS start-ups is enabling
India to become a global supplier
Recent adoption and growth of

Indian to become the computing and a digital ecosystem,
global supplier for SaaS better product fit, opportunity
products; SaaS exports from India in SME sector, increasing adoption by
are estimated to reach USD 19 – 20 Bn. Start-ups are driving SaaS demand in the
By 2022, contributing ~15% of the total global domestic market
demand
Indian software
Global Software & Services market is
& Services market is forecasted to reach
forecasted to reach USD 1.7 Tn. USD 37 Bn by 2022 from the current 28
by 2022 from the current 1.3 Tn. Bn (2018), SaaS Market expected to
(2018), SaaS market is expected contribute USD 3.3 – 3.4 Bn. by 2022
to contribute USD 129 Bn. (7%) (growth rate of 36% p.a)
by 2022
7
Cloud Growth – Strategic Direction & Policy considerations

Right strategic direction and policy initiatives coupled with required industry actions can accelerate the
growth of Cloud Industry in India
A sharper focus on the

multitude of other critical infrastructural
and operational factors (reliable power,
sustainable land regulations, high-speed
connectivity) driving Cloud growth in India will
lead to an expedited growth in the country
Indian Government
released a draft Data
The Government of India is required Protection Bill. The bill focusses on
to take a balanced view of industry multitude of areas like processing of
impact, economic impact, and impact on personal data, rights of the Data Principal,
data privacy and security as it evaluates data Transparency and accountability of data
localization. collected by the organizations, etc.
To set a strategic GoI through NDCP

direction for the Cloud, 2018 states the vision
the GoI may set out tangible for Cloud as ‘Establish
time-bound targets for Cloud like % India as a global hub for Cloud
of Government IT Spends on Cloud , % computing’ and has taken multiple
of India’s share of Global outsourcing steps for its growth
market
Additionally, action by industry players such as driving enterprise awareness on

Cloud, building custom-made solutions for SMEs, re-strategizing by IT players
to align with changing landscape, and forging partnerships & alliances to build
advanced skill-sets will help forge a sustainable Cloud growth in India.
8
TABLE OF CONTENTS
Section I. Cloud Computing 11

Section Summary 12
Technology Evolution 13
Cloud Computing: Key Characteristics 15
Cloud Computing: Deployment Models 16
Cloud Computing: Service Types 17
Global: Key Trends 18
Global: Market Size 23
India: Adoption Trends 28
India: Market Forecast 30
India: Focus Areas 32
India: Challenges 33
India: Recommendations 34
Cloud Ecosystem: Global & India 35
Section II. Infrastructure as a Service - IaaS 43

Section Summary 44
Data Center: Building Blocks 45
Data Center: Deployment Models 46
Data Center: Key Technology Trends 47
India: IaaS Penetration 49
India: IaaS Evolution 50
India: IaaS Current State 51
India: Key Growth Levers 53
India: Adoption Trends 54
India: Market Forecast 56
India: Challenges 57
9
Section III. Software as a Service - SaaS 59

Section Summary 60
SaaS Evolution 61
Global: Key Trends 63
Global: SaaS Penetration 65
India: SaaS Adoption 66
India: Market Size 74
India: SaaS Exports 75
India: Factors Driving SaaS Exports 76
SaaS: Challenges 79
Section IV. Cloud Growth – Strategic Direction & Policy considerations 81

Section Summary 82
Global: Ecosystem Development Measures 83
India: Ecosystem Development Measures 84
Data localization : Overview & Impact 85
10
Section I
CLOUD COMPUTING
11
SECTION SUMMARY
Cloud computing evolution, growth, key trends, market size, drivers,
challenges & recommendations
01 The concept of Cloud Computing has been around since late 1990s and has now
evolved significantly to an estimated size of USD ~187 Bn+ globally (2018)
02 Global Cloud Computing is 8% of the global relevant IT spend in 2018 and estimated
to grow at a CAGR of 16.5% p.a. to reach USD 345 Bn by 2022
03
Indian Cloud Computing market is USD 2.5 Bn (2018), dominated by SaaS (39%) and
IaaS (39%), and has significant scope for growth (estimated to grow at 30% CAGR to
become USD 7.1 - 7.2 Bn by 2022)
04
Emerging technology, commercial & consumer trends like Edge computing, Machine
learning, on-demand models, Immersive experiences and XaaS will further drive
adoption and innovative use cases
05
New age companies, those incorporated in the last decade (Born in the Cloud era) are
driving Cloud adoption by adopting Cloud first strategy and setting example for others
to follow
06
In India, Cloud adoption levels are high for few industry verticals e.g. IT/ITeS,
Communications, Media & Internet enabled companies. However, Banking, Healthcare
& Retail are still in the early stages of adoption
07
Cloud computing demand drivers in India : Growing opportunities from world
IT outsourcing market, increased awareness of Cloud computing benefits,
consumerization of IT, requirement of agile IT spending, proliferation of start-up
ecosystem, and emerging technologies in India
08
Cloud computing supply drivers in India : Presence of diverse of service providers,
availability of skilled talent with deep domain knowledge, cost advantages in platform
/ product build out, mature customer service and Government initiatives that are
driving Cloud Growth in India
09 Challenges for Cloud Ecosystem Growth in India include data security & privacy,
interoperability, loss of control, vendor ecosystem lock-in, Quality of Service, cost
savings uncertainty and regulatory uncertainty
In order to set a strategic direction for the Cloud, we recommend that GoI setup
10
tangible targets for Cloud e.g. % of Govt. IT spends on Cloud, % of India’s share of
Global outsourcing market. In order to boost the overall implementation, rollout and
adoption of Cloud, basic infrastructure such as reliable and high quality power for
Data Centers, Affordable data plans for consumers on high speed & reliable internet
are a must-have
Source : Gartner Cloud Forecast 2018Q1, Industry reports, Deloitte Analysis

Source : Deloitte Analysis
12
TECHNOLOGY EVOLUTION
Technology has seen rapid evolution since 1960s – From

mainframes to Cloud computing and beyond
Cloud Computing 2018:

• Edge computing Cloud computing
used by over 90%
• XaaS of Fortune 500
• Distributed systems companies
• Machine learning
2012:
Worldwide public
Cloud services 2018
spending ~ USD 100
Bn
Growth in Computing & Change in Form Factor
2003:
AWS platform was 2010’s
launched
Desktop 2000’s 2010:

Computers with
Google &
Microchips
Microsoft
First 1990’s launched their
Commercial Internet Cloud business
Computer mass
adoption
1970’s
Portable
1940-
1960’s Computers
50’s
Mainframe
Computers
Time
Source : International journal of Novel Research, Deloitte Analysis
13
CLOUD EVOLUTION
Cloud computing finds its evolution in the last 18 years, with future
technology evolution driving potential adoption
Data center • Major player Open Source • Cloud

growth was Google Cloud acceptance
highest in launches Movement grows further
the wake of Cloud services takes hold • Applications
the Dot-com • Part of the as UC-Santa grow beyond
boom Technology Barbara SaaS with
market (AWS) and IaaS and
disagrees with Rackspace (w/ PaaS taking
the concept of Nasa) launch firm grip
public Cloud Open Source
Cloud
2000-05 2006 2007-08 2008-09 2009-10 2009-12 2012-18 2018

onwards
Amazon enters With data • Cloud • 90% Fortune
the Cloud security computing 500 using
market with concerns, gains Cloud
the launch of players like acceptance in • Focus on
Amazon Web Microsoft and enterprises Next-gen
Services (AWS) Rackspace • Major players Cloud (XaaS)
veer towards like Netflix, • Growth of
private Cloud NASA join Cloud led by
establishment Cloud Future Tech.
• Hybrid Cloud (AI, ML etc.)
is born • Edge
Computing
taking firm
shape
14
CLOUD COMPUTING:
KEY CHARACTERISTICS
Cloud Computing is a model for enabling ubiquitous, convenient,

on-demand network access to a shared pool of configurable
computing resources
Self-Service
Creating
environments,
enhancing
capabilities,
adding capacity
with minimal
effort and lower
lead times
Dynamic
On-Demand Multi-Business
Provisioning. The Cloud computing
ability to add delivers shared
capability and capacity across
capacity as rapidly business lines,
as business reducing
requires duplicate
environments
Scalable
React quickly
to increased Digital-Based
business demand, Architecture
acquisitions, or Cloud
new business architectures
models without are based on
large Capex virtualized
expenditures environments
and increased long Flexible Pricing defined by
run-off periods facilitates better their use not by
visibility and cost hardware
control
allowing
enterprises to
spend in
other areas as
business demands
fluctuates
15
CLOUD COMPUTING :
DEPLOYMENT MODELS
Enterprises looking to private Clouds for their core assets whilst still
moving to public/hybrid Cloud environments
Cloud Deployment Types
Private Cloud Hybrid Cloud Public Cloud
The Cloud infrastructure is It is a composition of two The Cloud infrastructure

dedicated to an organization or more Clouds (private on is made available to the
which may be managed by premise / off premise, or general public or enterprises
the organization itself or a public) that remain unique while it is owned by a
third party and may exist on entities but are bound by third-party Cloud services
premise or off premise standardized or proprietary provider
technology that enables
data and application
portability
Considerations supporting Considerations supporting a Considerations supporting

continued importance Hybrid approach total Public Cloud adoption
of On-Prem
Risk averse
As organisations look
Capitalised enterprise organisations look to
to reduce complexity
software and associated keep mission critical
the adoption of
depreciation cycles may apps in house, leading
Public Cloud offers a
impact the ability of the to slow uptake due to
tenable platform for
organisation to justify ‘perceived’ (and not
streamlining processes
further investment to it’s real) fear of security and
and update cycles
shareholders data regulation issues
For businesses with CIOs report fear

extremely high compute of vendor lock-in
Ability to procure ‘best
processing volumes to infrastructure
in class’ for all apps/
the economics of as a concern when
technologies on a
outsourced data center considering transitioning
consistent platform
infrastructure many not core workloads to the
deliver cost efficiencies Public Cloud
16
CLOUD COMPUTING :
SERVICE TYPES
Cloud Enables breaking down the traditional IT services into
components and roll out each or combination as a specialized
service
Application Middleware and Mgmt
Facilities / Monitoring / Support

Public Off-premises
Application Host and Run
Operating System
Servers / Storage
Virtualization
Applications
Networking
Services
Integrated public
Hybrid
& private service
Private On-premises
Software-as- Platform-as- Infrastructure-as-

a-Service a-Service a-Service
Software that Ready-to- Horizontally and vertically
provides a use scalable, scalable compute, storage
purpose built integrated app and networking delivered to
business service to & data hosting an application on-demand
the client
*The organizations featured in this report are only illustrative and not exhaustive
17
GLOBAL : KEY TRENDS

Cloud computing is no longer about servers & storage; emerging
trends are transforming it as a business technology must have
Technology Customer
• Edge computing • Immersive experiences
• Server less computing • Hyper Personalized
• Containerization • IoT - Data eruption
• Low latency connectivity Cu • Cloud managed services
y
og
• Machine learning st
om
ol
hn
• Real time analytics er

c
Te
• Distributed systems
Trends impacting Cloud

computing
Bu
c
si
Se
ne
fo
ss
In
m
&
od
a
at
el
D
Business model Data & InfoSec

• Consumption based models • Emphasis on data
• Accelerated innovation security/privacy
• XaaS – Everything as a • Regulations on data
service localization
18
GLOBAL : KEY TRENDS |

TECHNOLOGY
Key technology trends – Drivers & opportunities for Cloud adoption
Low to High
Drivers Opportunity for Cloud adoption
• With proliferation of IoT use • Edge computing leading to

cases, newer and larger data emergence of innovative
sets like video, voice etc. are • Use cases e.g. HD video on
in demand. These require demand, gaming etc.
Edge computing resources closer
computing to the end consumer
• Higher computing • Machine learning and

capabilities allows to autonomous systems will
derive insights and acquire drive adoption of Cloud
capabilities to forecast computing resources
Machine future actions • Use case : Self driving
Learning
vehicles
• Increased computing • Cloud systems are obvious

capabilities allows analysis choice for handling large
of large quantities of data quantities of data thereby
driving adoption
Real time • Use case : Real time vehicle
Analytics tracking etc.
• 5G leverages small cell • Improved access to Cloud

architecture to deliver low applications by consumers
Low latency latency high bandwidth driving adoption
connectivity
• Emergence of newer use
(5G)
cases e.g. surveillance
• Distributed systems are • Distributed systems leading
challenging the authority to higher demand for low/
and inefficiencies of medium capacity Cloud
centralized systems computing resources
Distributed • Use case : Distributed ledger,
systems crypto currency etc.
19

BUSINESS MODEL
Key Business model trends – Drivers & opportunities for Cloud
adoption
Low to High
• Allows businesses to • Flexibility to cater to

acquire resources based on seasonal demand spike will
actual requirement drive adoption
• Allows flexibility to • Significant savings compared
increase/decrease to On premise solutions will
resources as required drive adoption
• Reduced cost of access
provides ability to
On-Demand
experiment and test before
access to
scaling
latest tech
• Allows businesses to • XaaS allows businesses the

acquire all the required IT required agility to launch
resources on demand required solutions
Driving -- Database-as-a-Service • Cost optimization
business -- Computing-as-a-Service opportunities to businesses
agility -- Security-as-a-Service by reducing the overheads
• Cloud ecosystem provides • Getting teams to focus on

businesses the required value adding projects, rather
agility to conceptualize, test than managing ‘keeping
& launch products lights on’ projects and/or
• Save on maintenance technology
time & cost hence more • Ease of implementation
innovative products and maintenance will allow
more number of use cases/
Accelerated workloads e.g. analytics, non
innovation critical apps etc.
20

CUSTOMER
Key Customer trends – Drivers & opportunities for Cloud adoption
Low to High
• Ability to experience • Compute & storage

standard media in a multi- requirement to power
dimensional realm experiences will drive demand
• Technologies include • Visual processing equires
-- Augmented Reality (AR) higher capacity graphics
processing capability which
-- Virtual Reality (VR)
are easily available over Cloud
Immersive -- Mixed Reality (MR)
• Use case: Education,
experiences Simulation etc.
• Increasing consumer • Cloud solutions are

requirements for anytime, well-suited to fulfil this
anywhere access to requirement
products and services
(device/platform agnostic,
Anytime, anytime and everywhere
anywhere access)
access
• Technological advances • Data generated by

have led to emergence connected devices will be
of multiple IoT based processed by Cloud and will
solutions drive demand
• Large quantities of data will • IoT platform offerings
be generated by connected from vendors will drive
devices new products/ solutions
e.g. Home automation,
IoT - Data Manufacturing automation
eruption etc.
• Enterprises’ need to optimize

• Provides the required ROI, reduce budgets, and
resources & skillsets cope with scarcity of Cloud
to manage Cloud experts drives spending on
deployments managed Cloud services(e.g.
Cloud
managed • Managed SPs can free up security as a service etc.)
services scarce internal IT resources
21

DATA & INFOSEC
Key Data & InfoSec trends – Drivers & opportunities for Cloud
adoption
• Ever growing complexity • Companies have to either

of threat vectors for build secured Cloud
enterprises to deal with capabilities in-house or
• Changing regulation trust Cloud service providers
and compliance policy or leverage best-in-class
Emphasis landscape across countries security and compliance
on data making it tough for tools from Cloud services
security/ enterprises to operate providers
privacy business across the globe • Higher demand for managed
• Hyper scale Cloud security services for Cloud
providers provide world- solutions
class security tools,
controls, and engineering
that are unavailable in-
house
22
GLOBAL: MARKET SIZE

Driven by the positive impact of trends, Cloud spend is catching up
fast on traditional IT across the globe
x% Represents Cloud spend proportion of total IT spend
x% Represents 18’-22’ CAGR of total IT spend In USD (Bn.)
2,900
CAGR(F)
2,692 18’-22’
2,700
2,363 2,445 13% 345 3.3%
2,500 2,226 221
8% 187 10%
152 16.5%
7%
2,300
1,900
2,176 2,224 2,347
2,074
2,100
1,700
1,500
2017 2018e 2019f 2022f
Non Cloud (Bn USD) Cloud (Bn USD)
• Cloud spending at USD 152 Bn. In 2017, and estimated at USD 187 Bn. by end of 2018
• Growing at 16.5% (CAGR), Cloud spending expected to touch USD 345 Bn. by 2022
1 2 3
• Globally, Cloud is • Trends show large • Large Enterprises
expected to contribute number of enterprises are likely to move
increasing proportion showing Cloud- workloads away
of total IT spending by first tendencies as a from traditional
enterprises way of maintaining and virtualized
competitive advantage environments toward
and relevance in the the Cloud at a relatively
business environment faster rate than prior
Cloud adoption waves
IT Spending/.Spend refers to spending by enterprises on Data center systems, Devices (excluding Mobile phones), Software,
IT Services, and Communication Services (excluding consumer communication)
Source : Gartner Market Databook 1Q18, Gartner Cloud Forecast 2018Q1, Deloitte Analysis
23
GLOBAL: MARKET SIZE

SaaS is the largest service type with a market share of 39% reaching
to USD 129 Bn by 2022
In USD (Bn.) Spending (USD Bn) & Growth (%) Share of Total Cloud (%)
• SaaS is the largest
component of the
SaaS –1 5.5%
CAGR Cloud market share
at 39%
39% 38% • SaaS is expected to
129.4
grow at 16% (CAGR)
72.7
SaaS service and reach USD 129
spending 2018e 2022f 2018e 2022f Bn. By 2022
• SaaS share in Cloud

spending is driven
by a multitude
laaS of Cloud-based
– 25.4% software offerings
CAGR
as well as IT
22% 30% spending shifts
102.5 towards lower-
41.4
IaaS service cost solutions by
spending 2018e 2022f 2018e 2022f Startups, Large
and Medium-Small
enterprises
• IaaS is expected to
PaaS have largest growth
(25.4% CAGR), with
%
– 20.7 Top-3 players in
CAGR 8% 9% Cloud introducing
32.3 to offer Hybrid
PaaS service 15.2 Cloud offerings to
spending 2018e 2022f 2018e 2022f consumer. IaaS
growth is expected
to be driven by data
security & safety
measures provided
by CSP
Other • PaaS is expected to
grow at a CAGR of
– 8.7%
CAGR 20.7% to reach ~USD
31% 23% 32 Bn in 2022
80.3 • Other services e.g.
BPaaS & Cloud 57.6
Management Cloud management
2018e 2022f 2018e 2022f etc. will grow at a
moderate CAGR of
8.7% to reach ~ USD
80 Bn in 2022
Source : Gartner Cloud Forecast 2018Q1, Deloitte Analysis
24
GLOBAL: CLOUD PENETRATION

Current state of Cloud penetration across countries indicate
significant opportunity for growth in India
Total GDP Total IT Total IT

IT spend1 as a % of total Public Cloud spend as a %
spend spend1 spend1
USD Bn USD Bn
GDP spend (2018)
USD Bn
of total IT spend1 (2018)
UK 2,622 137 5.2% 137 11.4%
USA 19,391 911 4.7% 911 11.4%
Canada 1,653 63 3.8% 63 11.3%
Australia 1,323 48 3.6% 48 7.7%
World 80,000 2,362 3.0% 2,362 7.9%
Germany 3,677 103 2.8% 103 6.9%
Brazil 2,056 40 1.9% 40 7.9%
India 2,597 42 1.6% 42 6.0%
China 12,238 172 1.4% 172 2.7%
Russia 1,578 15 1.0% 15 2.9%
• IT spending as a % of its India’s GDP for 2018 is only 1.6%, which is almost half the global average
of 3.0%
• India’s Cloud adoption is currently placed at 6.0%, which is lagging behind global average of
7.9% and is almost half the US, UK adoption levels of 11.4%
• The current global trend suggest that the IT spend and Cloud adoption in India is at a nascent
stage and there is a significant scope for growth, both in terms of IT spending and adoption of
Cloud in India in the near future
Source : World Bank, Gartner Market Databook 1Q18, Gartner Cloud Forecast 2018Q1, Deloitte Analysis
25
INDIA: KEY DRIVERS & TRENDS

Key drivers for growth of Cloud uptake in India
Consumerization of
Information Technology 01
02 Increased awareness of Cloud computing

benefits
Growing worldwide Cloud market 03
04 Presence of diverse landscape of

suppliers
Availability of skilled talent with deep

domain knowledge; mature customer
service 05
06 Cost advantage in platform/product

build out
Government initiatives in support of

Cloud computing 07
08 Emerging technologies such as

AI/ML enabling Cloud growth
Proliferation of start-up ecosystem in

India 09
Requirement of Agile IT
10 spending-”Fail Fast” thinking
26
INDIA: MARKET SIZE

Cloud computing in India is currently estimated to be USD 2.5 Bn,
dominated by IaaS & SaaS
In USD (Bn.)
7.1- 7.2
47%
4.4 - 4.5
43%
2.5 33%
39%
36%
39%
20%
21%
22%
2018e 2020f 2020f
Others IaaS SaaS
• Share of SaaS as a % of Total Cloud spend is expected to increase from 39% in 2018 to 47% by
2022
• IaaS growth is expected to remain, but share is expected to shrink to 33% in 2022 from 39% in
2018
• SaaS is expected to show strong growth driven by Cost-effective and Larger number of SaaS
offerings for large, medium and small enterprises
• While expected outcome is the strong leadership of SaaS in the overall Cloud offerings, the rate
of Cloud Adoption may change subject to multiple drivers and factors
IT Spending/.Spend refers to spending by enterprises on Data center systems, Devices (excluding

Mobile phones), Software, IT Services, and Communication Services (excluding consumer
communication)
27
INDIA: ADOPTION TRENDS

Cloud adoption levels are high for few industry verticals e.g. IT/ITes,
Communications, Media & Internet enabled companies…(1/2)
Industry Industry share Cloud Adoption Industry share

Verticals (%) of Total IT Level (%) of Total • Despite being a lower
spend in (Scale of 1-5, Cloud spend spender in IT (as % of Total
India (2018) 5 being the highest) in India (2018) IT Spend in India), IT/
– USD 41.6 Bn – USD 2.5 Bn ITeS sector is the highest
spender in Cloud (~25% )
IT/ITES
• Manufacturing has a
lower spend % in Cloud at
10% ~20% as % of Total Cloud
1 2 3 4 5 22% - 27% Spending
• General Trends show

E-Commerce that technology and
technology-based
industry sectors such as
4% - 6%
IT/ITeS, e-Commerce have
2% 1 2 3 4 5 a higher propensity to
spend on Cloud
• This is led by the ability
Communication to scale, savings in costs
& Media and agility in innovation
offered by Cloud
8% - 12% deployments
4% 1 2 3 4 5
• Most IT & e-Commerce
businesses have emerged
out of a Born-on-Cloud
Telecom jump start, and others are
slowly emerging to follow
a Cloud-only strategy in
terms of their IT spends
9% 1 2 3 4 5
7% - 10% • Verticals with high levels
of Cloud adoption are
shifting new and existing
Manufacturing workloads over Cloud,
however verticals
with lower adoption
18% - 22% are shifting only new
1 2 3 4 5 workloads which are easy
18% to implement over Cloud
e.g. Analytics
Source : Gartner Verticals_Forecast_WW_2018Q1, Deloitte Analysis
28

Cloud adoption levels are high for few industry verticals e.g. IT/ITes,
Communications, Media & Internet enabled companies …(2/2)
Industry Industry share Cloud Adoption Industry share

Verticals (%) of Total IT Level (%) of Total • Sectors such as Transport
spend in (Scale of 1-5, Cloud spend & Logistics, BFSI, Retail lag
India (2018) 5 being the highest) in India (2018) at a mere ~4% of the total
– USD 41.6 Bn – USD 2.5 Bn Cloud spending coming
from each
Government
15% • In highly regulated sectors

such as BFSI, Telecom,
1 2 3 4 5 12% - 15% Cloud adoption has been
relatively lower owing
to specific directives as
Transport & well as apprehension over
Logistics Cloud-security
5% • Traditional industry
sectors such as brick-and-
1 2 3 4 5 3% - 5% mortar retail (unorganized)
and Transport & Logistics
have shown little or no
adoption of Cloud
Retail
(ex
e-commerce)
4% - 6%
1 2 3 4 5
4%
BFSI
23%
1 2 3 4 5 4% - 6%
Others
8%
1 2 3 4 5
8% - 10%
Source : Gartner Verticals_Forecast_WW_2018Q1, Deloitte Analysis
29
INDIA: MARKET FORECAST

Driven by high adoption levels, the India Cloud market is poised to
grow ~3X to USD 7.1 Bn by 2022
In USD (Bn.)
9.3 - 9.4
R= 30%
CAG
7.1 - 7.2
5.6 - 5.7
5.1 - 5.2
4.4 - 4.5
3.9 - 4.0
2.5
2018E 2020F 2022F
Conservative Base Aggressive
• At an expected growth rate ~30%, India Cloud market is expected to touch USD 7 Bn.+ i.e.
3-times of current levels
• Cloud spending in India expected to touch USD 2.5 Bn. by end of 2018, and only 1.3% of global Cloud
spending
• Additionally, in 2018, Cloud spending is expected to be ~6% of the total IT Spending
• Growth rate of Cloud spending in India is 2nd highest in the World at 40.2% (CAGR) over 2016-18,
second only to China
• Over 13% of India’s workloads are expected to be moved to Cloud driving up the adoption of Cloud
Key Assumptions
• Penetration considered as Cloud Spend as % of Total IT Spend
• To arrive at the aforementioned growth rates, Cloud penetration growth trends
were compared and evaluated across both developed and developing economies
• Conservative case : India to emulate developing economies in Cloud penetration
and reach ~10% penetration in 2022
• Base case : India will reach the Global Average of Cloud Adoption by 2022 and
reach ~13% penetration in 2022
• Aggressive case : India to emulate developed economies in Cloud penetration and
reach ~17% penetration in 2022
30
INDIA : EXPORTS
In addition to domestic demand, significant opportunity exists for
Indian IT companies to capture global demand in Cloud Computing
Contribution of India exports against Global demand
In USD (Bn.)
IT 600 65 10%
Services
Packaged
420 25 6%
Software
BPM 163 26 14%
Global demand India Exports
• The IT Exports market of • Emergence of BPM products • Key segments identified for
India is expected to be and services for the overseas growth of Indian IT Exports
buoyed by the consistent clients of Indian IT Export remain Cloud (and software
growth of Cloud adoption firms, such as Robotics driven infrastructure)
globally Process Automation, • Transition of on-premise
• Sectors such as SaaS are Chat Bots, Analytics etc. to on-Cloud solutions as a
already driving the fastest have created a surge in means for enhancing value-
growth in Packaged Software Cloud-based Solutioning added delivery to overseas
(Growth at 7.7%) as a preferred delivery enterprises
mechanism
Source : NASSCOM, Gartner, Deloitte Analysis
31
INDIA: FOCUS AREAS

Providers focus areas for strategic investments to drive growth in
India
Infrastructure Talent
With increased demand for Cloud services in CSPs are driving investments in talent building
emerging markets, such as India, global and to cater to increasing demand and technological
domestic CSPs are driving investments in R&D, advancements.
Data Center Setup in focus areas etc.
Google Netmagic Freshdesk Providing Setting up Google

establishes a launches launches APN Partner a CoE in Reskilling
Cloud region in data centers new India technical, Vishakhapatnam India Program
Mumbai in 2017 in Bengaluru, data center in marketing, and as a part of to reach and
Mumbai Mumbai go-to-market its ‘Digital help 2 million
support to build inclusion’ drive developers in
a successful India acquire
business on sought-after
AWS. technology
skills
Partnerships Investments for Cloud Growth
CSPs are rapidly investing in strategic Investments in the sectors such as SaaS are
partnerships to acquire next-gen digital leading to the hyper-rated growth of the
capabilities creating a focused COE and companies, backed by a strong offering and
invocation hubs customer base
Portfolio Customer Web-Testing Payment

Engagement Platform Subscription
Software Billing
Paytm Walmart HSBC signs
Investment USD 100 Mn. USD 50 Mn. USD 18.5 Mn.
launches enters into a agreement with
AI Cloud in partnership Google Cloud
Investors Sequioa, Accel India, Accel
partnership with Microsoft for its “Cloud Accel partners Accel Growth Partners,
with Alibaba for wider first strategy” Tiger Global
use of Cloud
and artificial
intelligence
32
INDIA: CHALLENGES
While the outlook is largely positive, there are a few challenges to
surmount for increasing Cloud adoption
Data Security Interoperability

Data security is a major concern Necessity for Large Enterprises
for companies managing sensitive to have capability to integrate
customer and business information. smoothly with existing
India ranks 4th when it comes to deployments, in addition to cost
online security breaches benefits
Loss of Control
Regulatory Compliance Perceived concerns around

potential loss of governance
National and international at an infrastructure level,
laws on data sovereignty and where enterprises lose direct
data privacy, industry specific oversight of data, servers
regulatory compliances and and security protocols
jurisdictions are the top
considerations for enterprises Key
Challenges Vendor Ecosystem Lock-in
Potential loss of flexibility of
migrating in and out of the
Cloud vendor ecosystem, they
also lose out on access to
better products and pricing
available with other Cloud
vendors
Re-Architecture of Processes &
Systems Cost Savings Uncertainty
Migration to Cloud infrastructure Visibility of cost savings tend to
and offerings tends to have a shrink in the longer run, and is a
cascade down impact on the challenge to businesses as most
existing processes and systems, Cloud service providers have
which need to be re-engineered complex pricing models which
may also include hidden charges
in their offerings
33
INDIA: RECOMMENDATIONS
Key recommendations for growth of Cloud ecosystem in India
Recommendations for Growth of Cloud Ecosystem in India
1
Drive awareness of
enterprises on advantages of 2
Cloud
Consider impact of Data

3 localization
Build custom-made solutions

for SMEs 4
5 Strict enforcement of Data

Protection Bill
Ensure strict compliance
with data privacy and
confidentiality laws 6
7 Continue/augment efforts
on broadband, power
improvements
Large incumbent IT players to
align strategies with changing 8
landscape
9 Incentivize MSMEs for

Cloud adoption; Cloud
First Guideline
Drive advanced skill
development 10
Enable ease of operations

for data center set-up,
incl. taxes and subsidies
34
CLOUD ECOSYSTEM : GLOBAL

& INDIA
Cloud ecosystem comprises Service providers, Cloud consumers &
Cloud enablers
Cloud Providers Cloud Consumers
Global MNCs Indian companies Enterprise

SaaS
PaaS
IaaS
Digital Natives
System integrators/Consultants
Enablers
Government/ Industry bodies
• Cloud Providers: Organisations that provide Cloud services across the various Cloud Services such as
SaaS, PaaS, IaaS, and cover organisations with Global Presence as well as those organisations which
are of Indian origin and may have global interests/focus
• Cloud Consumers: Organisations of either Enterprise-pattern/needs for Cloud Services, or Digital
Native-oriented organisations which power mobile/portable device consumption of data
• Enablers: Technology System Integrators, Consultants as well as Bodies of the Government and
Industry Organisations that play a critical role in ensuring the overall successful deployment of Cloud
solutions (Integrators), as well as drive growth of Cloud Computing through Policy, Regulations and
Directives
35

PLAYERS
Cloud Ecosystem | Global players
Cloud Service Provider Service Geographical Key Offerings

Offering Focus
SaaS Worldwide Key Products of Google Cloud

Platform:
• Compute
• Networking
Google Cloud offers enterprises IaaS • Security
Cloud computing solutions which
• Storage
includes Google Cloud Platform
• Analytics
and GSuite. Their technology
PaaS • Machine Learning APIs
is built on Google’s private
• GSuite
network and is the product of
• App Engine
nearly 20 years of innovation in
• Apigee
security, network architecture,
collaboration, artificial
intelligence, and open source
software.
SaaS Worldwide Key products of AWS:
• Cloud Compute, Elastic Storage,
Databases,
• Analytics
Amazon Web Services (AWS) IaaS • Networking,
is a subsidiary of Amazon.
• Developer tools
com that provides on-demand
• Management tools
Cloud computing platforms
PaaS • IoT
to individuals, companies
• Security
and governments, on a paid
• Enterprise applications
subscription basis
SaaS Worldwide Over 600 Services:
• Compute, Mobile, Storage services
• Data management,
IaaS • Messaging, Media services, CDN
Microsoft Azure is a Cloud
• Machine learning & IoT.
computing service created by
Microsoft for building, testing, Key Products:
deploying, and managing PaaS • Virtual machines,
applications and services through • Database: Azure SQL, Azure Cosmos
a global network of Microsoft- DB,
managed data centers • Azure Kubernetes service (AKS)
• Block chain workbench etc.
36
CLOUD ECOSYSTEM : INDIA

MAJOR IT PLAYERS
Cloud Ecosystem | India Major IT players
IT Player Service Geographical Key Offerings

Offering Focus
SaaS Worldwide Key Solutions:

• Advisory: Bus. Process, Tech.
Readiness etc.
• Development
A dominant player in the India IaaS -- Lift & Shift Cloud Migration
IT/ITeS sector, Infosys has
-- Modernization
created a suite of offerings in the
-- Readiness Engineering
Cloud domain across Advisory,
PaaS -- Native Cloud Development
Development and Co-evolution
• Co-evolution
-- New & Future Tech.
-- Utilization, Performance & Cost
Analysis
SaaS Worldwide Key Solutions
• Advisory
• Migration
• Native
Wipro empowers the continuous IaaS • Testing
transformation journey of
• Security
enterprises by providing full
• Engineering
stack Cloud services – Edge to
PaaS • Integration
Cloud across domains delivered
• Operate
through industrialized solutions
SaaS Worldwide Key Products & Solutions
• CHybrid Cloud
• Advisory Services
IaaS • Cloud Architecture Services
TCS is a dominant player in
• Containerization of Services
the IT/ITeS Industry, with
• Dev-Ops Services
specific product and services
• Managed Services
offerings in the Cloud domain. PaaS
These solutions span Cloud
Infrastructure and Cloud
Applications as well as advisory
37

EMERGING PLAYERS
Cloud Ecosystem | India emerging Players
IT Player Service Geographical Key Offerings

Offering Focus
SaaS India Key Offerings:

• Payment Gateway Integration to
small, medium and large scale
businesses
BuildaBazaar is India’s largest IaaS • e-commerce
SAAS based E-commerce
• Online store building
platform. This platform is
• Customer service
currently utilized by several
PaaS • e-commerce consulting
industry giants for their
e-commerce stores
SaaS India Key Solutions
• Hardware-as-a-Service
• Colocation-as-a-Service
• Disaster Recovery
RackBank Data centers Pvt. IaaS • Data Center Services
Ltd is Central India’s first Data
• Backup Services
center located in Indore, India.
Rackbank currently has a data
center in Indore; with data PaaS
centers in Mumbai and Chennai
being planned
SaaS India, Middle • Retail (inclusive Apparels &
East Fashion): enhance consumer
experience across websites, apps,
IaaS offline stores, e-commerce market
Capillary Technologies is a
place etc.
software product company,
• Provides AI powered retail CRM
which provides Cloud-based
solutions, e-commerce and loyalty
Omni channel Customer PaaS software
Engagement, e-commerce
• Provided B2B solutions such
platform and related services for
as digitizing clients business
retailers and brands.
to strengthen the distribution
channels, increase in retail
penetration and inventory ratio;
boost returns on promotions
38

START-UPS
Cloud Ecosystem | India Start-ups
• India’s startup ecosystem has evolved to become the 3rd largest in

the world and currently boasts of 10 Unicorn start-ups
Start-up ecosystem
in India • India is house to ~5,200 technology start-ups and is witnessing a
rapid rise in the business to business start-ups focused on verticals
like health-tech, fintech, e-commerce and aggregators
• Industry focused solutions and the associated cost savings by

moving from a CAPEX based IT spending model to an optimized
OPEX model
Start-ups Adopting
• Ability to reach global markets with relative ease at an affordable
Cloud Services
cost, fueling business expansion plans
• Keeping pace with technology trends and latest innovations to play
a vital role in achieving sustained growth
• Emergence of trends to adopt SaaS and PaaS solutions by

businesses across the world leading to larger technology/IT
Start-ups Providing start-ups offering Cloud-based products
Cloud Services • Demand origination from Developed economies as well as captive
demand from Indian industry leading the growth of Cloud-start-ups
across SaaS, IaaS, PaaS
39

START-UPS
Cloud Ecosystem | India Start-ups (Cloud service providers)

Offering Focus
SaaS Worldwide Key Offerings

• Analytics
Practo is the leading healthcare • Databases
platform that connects millions • Networking
IaaS • Appointment Booking
of patients with healthcare
providers across the world • Online doctor consultation
• Ordering medicines.
Founded & HQ: 2008, Bangalore, PaaS
India
SaaS Southeast Asia, Key Offerings:
South Asia, • Virtual Receptionist
and the Middle • Superfax
East • SmartIVR
Knowlarity Communications is a IaaS • Hosted PBX
Cloud telephony and AI company
• IVR, Toll Free Numbers
which provides Cloud-based
• Virtual Numbers, Conferencing
customer service and sales call
• API
handling solutions to businesses PaaS
• Cloud
in Southeast Asia, South Asia,
and the Middle East.
Founded & HQ: 2009, Singapore

SaaS Worldwide Key Offerings:
• Customer support service
• Multi-channel support
IaaS • Analytics
Freshdesk is Cloud-based
• Customer queries
customer support software
company. It focusses on cross-
functional team collaboration PaaS
to deliver exceptional customer
support.
Founded & HQ: 2010; Chennai,

India
40

START-UPS
Cloud Ecosystem | India Start-ups (Cloud service providers)

Offering Focus
SaaS Worldwide Key offerings:

• Data management-as-a-service
solution
• Cloud applications
Druva is currently one of the IaaS • Data protection
leading companies in Cloud data
• Security
protection and management
• Analytics
operating across 6 countries
PaaS • Server
It’s customers include over
4,000 global organizations, and
protects over 40 PB of data.
Founded & HQ: April 2008;

California, USA
SaaS India, China Key offerings:
and US • Predictive intelligence
• Process automation tools
• AI
Pentation Analytics is an IaaS • Analytics
insurtech company which
• Enterprise applications
helps enable insurers and
intermediaries to better engage
with policy holders PaaS
Founded & HQ: 2015; Hartford,

Connecticut
41
42
Section II
INFRASTRUCTURE AS
A SERVICE - IAAS
43
SECTION SUMMARY
IaaS evolution, growth, trends, market size, drivers, challenges &
recommendations
01 Global IaaS market is estimated at 18% of the global IT infrastructure spend in 2018
and is forecasted to grow at a CAGR of 25% to become USD 102 Bn. by 2022
02
India’s IaaS market contributes to 21% of its IT infrastructure spend, and has an
estimated market size of USD 956 Mn. (2018). It is estimated to grow at a CAGR of
25% reaching USD 2.3 - 2.4 Bn. by 2022
03
IaaS demand drivers in India : economic benefits to enterprises and start-ups
choice with customized product offerings and flexible pricing models, and the
governments push towards a connected ecosystem
04
IaaS supply drivers in India : Improved infrastructure facilities (Submarine landing
stations and affordable power), government’s commitments towards data center
investments and availability of a large talent pool
05
The data center supply ecosystem in India has expanded exponentially in the last
four years with all the large global IaaS players (AWS, Google Cloud, IBM, Azure etc.)
and established domestic players (Tata Communications, ESDS, CtrlS, Netmagic etc.)
now operating in India
06
Lack of access to quality broadband (pipe), reliable power supply, stringent land
(place) regulations and cumbersome permission procedures are some of the
challenges faced by IaaS players
44
DATA CENTER : BUILDING

BLOCKS
To understand IaaS, we need to understand the basic building
blocks of data center
The server layer consists

of the Processor,
Storage and RAM, to
provide, computing &
Server RAM storage power to run
applications.
Processor Storage Connectivity allows

customers to connect to
their data and manage
their applications
Network
Connectivity / Bandwidth
Infrastructure consists of
facilities such as building
Cage Rack
Building area, racks, power supply
and cooling systems
Area
Location Power Cooling
IaaS is fundamentally a data center at core, rolled out as a service on the internet
45
DATA CENTER : DEPLOYMENT

MODELS
Captive, Colocation and IaaS are the typical data center deployment
models
Captive Colocation IaaS
Enterprises own and Colocation providers offer IaaS companies offer

internally manage IT infrastructure services to complete IT services to
Infrastructure / Services: enterprises: enterprises:
• Building infrastructure • Building infrastructure • Building infrastructure
– Power, racks, cooling – Power, racks, cooling – Power, racks, cooling
systems systems systems
• Network connectivity • Network connectivity • Network connectivity
Overview • Compute services • Compute
• Storage • Storage
• Managed services • Managed services
• Complete freedom of • CAPEX is not spent on • No CAPEX spent on IT

choice and control over construction of data hardware or software
hardware, software and center • Provision to scale
data security • Enterprises have limited up and down
• Enterprises are free freedom of choice over computational needs
from getting locked in to hardware and software based on demand
vendor ecosystem • Allows firm specific cycles
Key
security protocols and • Higher visibility of
Features • High CAPEX customizations IT costs and flexible
investments, high • pricing models
maintenance cost and • CAPEX is spent on
security hardware (servers, • Inability to deploy
• Difficult to match network racks, etc.) and custom hardware
infrastructure capacity software solutions
with demand • Hiring and training of
• Expensive disaster staff required to manage
recovery and business their IT systems
continuity management • Expensive disaster
recovery and business
continuity management
Popular among large • Popular among • Popular among small

Customer enterprises and highly enterprises that and medium scale
Preference regulated verticals such as: must meet specific enterprises who gain
• Banking compliance or data from faster time to
• Financial services protection requirements market and reduced IT
• Insurance without actually paying spend
• Enterprises which for the construction • Large enterprises are
require strict data looking at IaaS providers
confidentiality and for new greenfield
complete management projects
control of their
operations
46
DATA CENTER : KEY

TECHNOLOGY TRENDS
Edge data centers, all flash storage, converged technologies,
efficient cooling innovations are driving adoption of IaaS
Edge data centers,

containerization of Highly efficient all Flash
applications, converged Storage solutions are
technologies, efficient cooling changing future data center
innovations are driving designs
adoption of IaaS
IaaS key
technology
trends
More investments in
improving data center Converged and
efficiency through new hyperconverged
cooling solutions infrastructure (simplifying
data center design and
enhancing cost efficiency)
and Improving connectivity
Getting the data

centers hybrid ready
47
GLOBAL : MARKET SIZE

Driven by innovation, global IaaS spending is estimated to grow
rapidly at a CAGR of 25.5% and reach USD 102 Bn. by 2022
x% Represents IaaS proportion of total IT infrastructure spend In USD (Bn.)
x% Represents 18’-22’ CAGR of total IT Infrastructure spend

286 CAGR(F)
272 18’-22’
257 5.7%
244
229 25.5%
85 31% 102
211 68 36%
54 27% -0.6%
41 18% 22%
30 14%
181 188 190 189 187 184
2017 2018e 2019f 2020f 2021f 2022f
Non IaaS (Captive + Colocation) IaaS
IT Infrastructure Future growth
• Infrastructure spending trend changing • IT infrastructure spend in IaaS is expected

rapidly with Industry 4.0 led revolution to grow by 26% to reach USD 102 Bn. by
• IT infrastructure USD 229 Bn. market of 2022
which IaaS ~18% • Proportion of IaaS to IT spend to increase
• Captive and colocation services to 36%
contribution ~82%
48
INDIA : IaaS PENETRATION

Current state of India’s IaaS penetration at ~21.4%, above global
average of 18% indicates growth potential
Total IT infra Total IaaS

spend (USD spend (USD IaaS spend as a % of IT Infrastructure spend (2018)
Bn.) Bn.)
UK 9.1 2.9 31.4%
USA 92.7 22.5 24.3%
Canada 6.3 1.4 22.7%
India 4.5 1.0 21.4%
World 229.2 41.4 18.0%
Brazil 2.5 0.4 17.7%
Australia 2.6 0.4 16.6%
Germany 10.7 1.4 13.1%
China 31.2 2.7 8.6%
In 2018, IaaS market in India was valued at an estimated USD 956 Mn.
49
INDIA : IaaS EVOLUTION

IaaS ecosystem in India has proliferated over the last 4 years, with
presence of both global MNCs & Indian players
Only few domestic players like Tata

Before 2014 Communications, Airtel, Netmagic
operated in India
IBM Opens its 1st private data

Oct 2014
center in Mumbai
Shortly, IBM follows up with its 2nd

Oct 2015 data center, a public Cloud data
center at Chennai
Microsoft opens 3 data centers

Oct 2015
in Mumbai, Pune and Chennai
India becomes the 13th AWS region

Jun 2016 as AWS opens its 1st India data
center with two availability zones
in Mumbai
Google Cloud opens its 13th GCP

region worldwide and 1st region Nov 2017
in Mumbai, India.
Alibaba announces its entry in the

Dec 2017 India data center market with plans
to set up its 1st base in Mumbai
CtrlS opens its 4th data center in

India. A Tier IV green data center Feb 2018
at Bangalore
Netmagic launches two data

Jun 2018 centers in Bengaluru and Mumbai,
expanding its overall India capacity
by 70%
50
INDIA : IaaS CURRENT STATE

India has a small data center footprint, with majority of them
located in select few metropolitan cities
~15%
Delhi NCR
~4%
Jaipur
~4%
Ahmedabad
~3%
~24% Kolkata
Mumbai Region ~5%
~7%
Pune
Hyderabad
~16%
Bengaluru
~10%
Chennai
~4%
Kochi Region
~200 # of data centers facilities providing colocation and IaaS services in India
2.2% Share of global data center footprint
92% Contribution of tier I cities to Data center footprint
Lack of data centers in Tier 2 & Tier 3 cities due to lack of access to quality broadband, sustainable
power and stringent policy regulations.
Source : OVUM and Data center map

https://www.srgresearch.com/articles/hyperscale-data-center-count-approaches-400-mark-us-still-dominates
51
However, future investments in Data Centers look promising
# Company Planned investments
1 • Has entered into a MoU with State Govt. to set up renewable

powered 5GW Data center parks in Vizag
• Plans to invest INR 40,000 crore on Data center park and INR
30,000 crore in renewable power infrastructure
2 • Plans to invest about INR 1,200 crore in next three years for
setting up R&D and upgrading of infrastructure of its five existing
date centers
• Also plans to add new data centers in Hyderabad and Mumbai
within three years
3 • Looking to open two more data centers in Kochi and Naya Raipur
4 • Plans to open India’s largest data center in Bhopal, with a planned

capacity of five lakh virtual servers
5 • Plans to invest $1 billion in five years to build hyper-scale data

centers in Chennai, Mumbai and Hyderabad
6 • In Jul 2018, Oracle announced plans to expand its Cloud services

in India over the next six to nine months with by setting up Oracle
data center in India
7 • In Aug 2018, Reliance announced plans to invest INR 1,000 crore
in a state-of-the-art greenfield Data Center in Kolkata
Source : News articles (Details in Notes below), Deloitte Research
52
INDIA: KEY GROWTH LEVERS

Key growth levers driving adoption of IaaS in India
Economic Benefits Availability of Talent

Asset-light IaaS help Rapidly expanding talent
enterprises operationalize pool suitably qualified on
their IT expenses, reduce Cloud platforms / products
expertise making India
their CAPEX burden, and
global leader in Cloud
enhance their return on
consulting, implementation
assets thus improving the and migration activities
firm profitability
Customized product Government’s

offerings & flexible pricing commitments towards
Enterprises can choose investments
the right product from the Government through
offerings mix based on departments and wholly
their customized needs owned units such as NIC,
with a flexible pricing
Meghraj etc. are investing
model
and providing data center
services
Connected Ecosystem Improved infrastructure

Government schemes such facilities
as Digital India, Smart Cities Relatively inexpensive
etc. creating connected power, presence of cable
ecosystems spiking data landing stations makes India
center demand strong choice for
Data centers
53

IaaS adoption levels are high for few industry verticals e.g. IT/ITeS,
E-Commerce and Communications & Media sectors…(1/2)
Industry Industry share IaaS Adoption Industry share • Spending as a proportion

Verticals (%) of total IT Level(Scale of 1-5, 5 (%) of total of total IaaS spending is
Infrastructure being the highest) IaaS spend in significantly high in IT/ITeS
spend in India India (2018)– as well as Manufacturing
(2018) – USD USD 956 Mn.
4.5 Bn.
IT/ITES • Internet enabled
businesses as well as
12% high-tech industries
prefer IaaS owing to the
1 2 3 4 5 19% - 23% asset-light, cost only
model for infrastructure
• With highest propensity
E-Commerce
to adopt, IT/ITeS sector
contributes to over 19% of
the total spending
4% - 6%
1% 1 2 3 4 5
Communication
& Media
5% - 7%
4%
1 2 3 4 5
Telecom
10% 12% - 14%
1 2 3 4 5
Manufacturing
19% 18% - 22%

1 2 3 4 5
54

IaaS adoption levels are high for few industry verticals e.g. IT/ITes,
Communications, Media & Internet enabled companies …(2/2)
Industry Industry share IaaS Adoption Industry share • Traditional/ Regulated

Verticals (%) of total IT Level(Scale of 1-5, 5 (%) of total sectors such as Transport
Infrastructure being the highest) IaaS spend in & Logistics, Retail and BFSI
spend in India India (2018)– show little to no adoption
(2018) – USD USD 956 Mn. of IaaS
4.5 Bn.
Government
• BFSI and the Government,
both highly regulated,
15% have low adoption of IaaS
1 2 3 4 5 11% - 13% • Traditional sectors such
as Transport & Logistics
and Retail have limited
applications of IaaS and
Transport &
show less than average
Logistics
willingness to adopt
6%
1 2 3 4 5 3% - 5%
Retail (ex
e-commerce)
4% - 6%
7% 1 2 3 4 5
BFSI
17%
4% - 6%
1 2 3 4 5
Others
8%
1 2 3 4 5 9% - 11%
55
INDIA: MARKET FORECAST

Driven by high adoption levels India IaaS market is estimated to
grow ~2.5X approaching USD 2.3-2.4 Bn. by 2022
In USD (Bn.)
2.8 – 2.9
R= 25%
CAG 2.3 – 2.4
1.9 – 2.0
1.7 – 1.8
1.5 – 1.6
1.4 – 1.5
1.0
2018E 2020F 2022F
33% ~USD 2.4Bn. 25% 40%
Of the forecasted Estimated Indian Estimated IaaS of the Indian IT

Cloud market is IaaS market by the CAGR infrastructure
expected to be end of 2022 (2018-22) market will be
delivered by IaaS contributed by
by 2022 IaaS by 2022
• Cloud-First strategies followed by Enterprises as well as the Government of India are driving up the
potential for IaaS adoption
• Upscaling (Hyper-scale) and New Data centers by global leaders such as Amazon, Google and
Microsoft in addition to Tier-4 data center launches by local players are driving up shift to IaaS for
local enterprises
56
INDIA: CHALLENGES
However, a few fundamental challenges need to be addressed to
drive adoption further
Power & Electricity Place & Location

• Largest cost heads for data center • Data centers in India are presently
business - 30-40% of the total concentrated in tier l cities like
operating cost Mumbai, Pune, Chennai, Delhi
• Reliable power supply is a major • Rural areas / tier-2 & tier-3
challenge throughout India cities lack infrastructure, power,
connectivity
Challenges for
uptake of IaaS
Pipe & Capacity Permissions

• Dependence on Telcos and ISP • Starting a new data center requires
for connectivity needs, as license close to 60 permissions from
only available to carriers in India. over 15 different government
Dependency drives up the cost of departments, taking as long as 6 to
operations 8 months to only start constructing
• Average broadband speeds in the data center
India are low and uneven across • Cloud providers are hassled
cities, which affects QoS by the permission procedure
and long revenue gestation
cycles
57
INDIA: RECOMMENDATIONS
Key infrastructure and policy considerations for growth of IaaS in
India
Connectivity
• Ensure availability of
Reliable and High-Speed
Broadband
• Connectivity issues in Tier
2 & 3 cities
Infrastructure
• Land regulations
enabling ease of
data center set-up Awareness
• Favorable facilities • Industry awareness
in Tier 2 and Tier of security
3 cities (Cities of with Cloud, RoI
affordable land advantage vis-à-vis
availability) on-premise
• Building • Lack of
infrastructure understanding and
namely power, awareness of the
racks, cooling software
system, storage
adds on to the cost
Power Data Security

• Availability of a • Clear guidelines
reliable power to organizations
source on data security
• Concentration of measures and
data centers in Tier standards
1 & 2 cities
• Availability of
reliable and
affordable power
supply in Tier 2 & Permissions
Tier 3 cities • Ensure regulations favoring
• Largest operating timely Go-to-Market
cost for data center for data center set-up
business (Reduced permissions and
operational steps)
• Multiple permissions
from various government
departments taking over 6
months to start data center
construction
58
Section III
SOFTWARE AS A
SERVICE - SAAS
59
SECTION SUMMARY
Section Summary: SaaS evolution, growth, trends, market size,

drivers, challenges & recommendations
01
Global Software & Services market is estimated to reach USD 1.7 trillion by 2022
from the current 1.4 trillion (2018), SaaS to contribute USD 129 Billion (7%) of the
total software & services market by 2022
02
Indian Software & Services market is forecasted to reach USD 37 Billion by 2022
from the current 28 Billion (2018), SaaS to contribute USD 3.4 Billion (9%) of the
total software & services market by 2022
03 India is one of the fastest growing SaaS market in the world, estimated to grow at
CAGR ~36% (2018-22)
04
Factors driving SaaS demand in Indian market are increasing adoption by Start-ups
and SMB’s due to cost savings and increased efficiency potential and availability of
customized solutions
05
Increased SaaS adoption is being experienced in sectors like retail, media,
e-commerce however sectors like BFSI, Healthcare are yet to follow adoption due
to data privacy and security concerns
06 ~70% of the total SaaS revenues earned by Indian players are contributed by other
geographies, USA being the highest contributor
07
India has become a strong supplier market for software and SaaS owing to cost
advantage, skilled talent availability, mature Inside sales eco-system and increased
investments in SaaS start-ups
08
Although SaaS Market in India is on growth trajectory, few challenges still exist like
limited understanding of SaaS benefits, under-penetrated SMB segment and talent
limitation in specific areas
09
To further drive the growth of SaaS market in India initiatives like re-skilling for
relevant skills, leveraging new-age technology for product development and
partnerships shall be undertaken
60
SaaS EVOLUTION
SaaS is a software distribution model, in which third party providers

hosts application and enable consumers to access it over the
internet
With increased awareness and popularity, SaaS began to see higher uptake,
minimal capital investments, faster deployments and increased returns.
1960 - Emergence of SaaS – use

1980 of “dumb” terminals
Critical business data kept 1980 -

on central server - accessed 1990
using LAN
“Bloatware” filled the
Mid
hard-drive space faster –
1990s
led to surge in SaaS
Emergence of Application Late

Service Provider (ASP) 1990s
Industry
Early
2000s Death of ASP – technical
barriers & lack of
scalability
Salesforce – the first SaaS
2000s
built
- 2010
2010 -
SaaS becomes a $12 Bn.
2011
market
SaaS market estimated at

2017
$59 Bn.
Evolution story
As the market progresses, rapid changes are being seen in the way SaaS offerings are priced and
sold. From annual licenses to subscription and per feature pricing, from traditional feet on street
to inside sales, the changes are enabling faster and seamless adoption
61
SaaS EVOLUTION
SaaS is a software distribution model, in which third party providers

hosts application and enable consumers to access it over the
internet
Healthcare E-Commerce Retail Manufacturing BFSI Education

Vertical
ERP BI/ Analytics HCM CCM SCM CRM

Horizontal
Vertical SaaS Horizontal SaaS
Solutions address specific sectors and aim Aims to provide a broad service that can
to provide tools to businesses in specific cover a wide breadth of the market, through
industry sectors e.g. Healthcare by Practo, different industries e.g. Salesforce
Manufacturing by Sage
62
GLOBAL: KEY TRENDS
Key emerging trends that are shaping the future of SaaS
Vertical SaaS out spacing

Integration through APIs Increase in Micro-companies
Horizontal
• Demand among SaaS users • Companies generally run by • Vertical SaaS models allows
for flexible and seamless a small team that provide the SaaS to go deep, and
integrations of software niche products for specific offer full-featured solutions
products, databases and needs, or complementary to problems of an individual
information streams has products to improve a missing vertical
fueled Integration Platform / a particular feature of an
as-a-Service existing SaaS
Illustrative Example Illustrative Example Illustrative Example
Clearbit is A CMS which An app for Connects Targeted SaaS-based

a collection is built for store locator, Google Sheets SaaS-based learning
of Business the multi- provides data to anything - applications management
Intelligence APIs device world management web, mobile, for the life- solution for
with the goal of through an API, as well as IoT or any sciences education and
becoming the dealing with analytical service’s API industry training sector
BI backend for complexity of suites
businesses content across
devices
Futuristic Technologies Consumption-based

in SaaS Models
• Key futuristic technologies • Allows businesses to acquire
deployed by SaaS include resources based on actual
Artificial Intelligence, Machine requirement with flexibility to
Learning and integration increase/decrease resources
with Internet of Things (IoT) as required
devices • Per-user, Usage/Value/
Outcome based/ Per Feature
and Freemium models
available
Illustrative Example Illustrative Example
IoT integrations Azure AI Zoho offers Google offers

with Salesforce platform allows feature based per user based
allows for enterprises to pricing on a pricing for
real-time create Artificial per-user basis, incremental
interactions Intelligence- adding features users within
and enterprise- based modules as enterprises an enterprise
wide visibility using their select higher for its GSuite
Dynamics CRM price plans - enterprise
collaboration
and productivity
application
63
GLOBAL: MARKET SIZE
Global SaaS industry is estimated to be 73 Bn in 2018 and expected

to grow to USD 129 Bn by 2022
CAGR
(2018-22)
Share of SaaS in the total
1,739
6%
1,645 129
7.4%
115 15%
1,556
7.0%
1,473 100 5%
6.4%
1,394 86
5.8%
73 1610
1,286 5.2%
59 1530
4.6% 1456
1387
1321
1277
2017 2018E 2019F 2020F 2021F 2022F
Software & Services (Non-SaaS) SaaS
Key reasons encouraging the

In 2018, global software & transition from on-premise
services industry is estimated to to SaaS are greater agility
be USD 1.4 Tn, and forecasted to enabling rapid innovation,
grow at an annual rate of 6% in reduced vendor lock-in, reduced
the next 5 years to reach USD 1.7 time to market, reduced IT
Tn by 2022 dependencies and continual
access to latest software
Demand for SaaS is enhanced

Global SaaS industry is currently by the continuous development
estimated to be sized at USD 73 of world-class solutions
Bn in 2018 and expected to grow which are targeted towards
to ~ USD 129 Bn by 2022 changing business needs and
technological advancements
Source: Gartner, Deloitte Analysis
64
GLOBAL: SaaS PENETRATION
Comparison of SaaS penetration as a % of software & services

across countries, indicates significant potential for growth in India
SaaS as a % of software & services - 2018
Canada 8.6%
USA 6.6%
key drivers for the growth of
SaaS
Russia 6.6%
Australia 6.1%
• Requirements of agility in
Global 5.2% launching new products/
services
• Increased awareness of
the SaaS benefits
UK 4.7%
• Emergence of
consumption based
models
Germany 4.7% • Emergence of
technologically advanced
start-ups
India 4.0%
Brazil 3.8%
China 2.0%
SaaS is estimated to be ~972 in 2018 i.e, 3.5% of the total software and services market
65
INDIA : SaaS ADOPTION | BFSI
Sector highlights, key areas of implementation and notable uses

cases in BFSI
Key areas of implementation

Industry Size :
$ 1.8 Tn (2018)
Digital Customer Cyber Data

Solutions Experience Security Analytics
IT Spend:
$ 10 Bn. (2018) Notable Use Cases
• Analytics applications • Offers core and • Offers core and

for insurance, banking, payments-processing payments-
financial services, solutions that processing solutions
Software &
capital markets, and improve service, that improve service,
Services spend:
payment sectors reduce cost and reduce cost and
$ 7 Bn. • Insurance Analytics maximize efficiency maximize efficiency
Suite that offers for financial for financial
process automation institutions institutions
and predictive • Solutions provide • Solutions provide
intelligence enabled seamless, real-time, seamless, real-time,
product for policy high-volume and high-volume and
renewal enhancement high-performance high-performance
SaaS Share : transactions across transactions across
3-4% multiple channels multiple channels
Sector Highlights
• Currently, Cloud solutions are adopted in this sector mainly for lead management, email services &
human capital management
• In contrast to the size of IT spend, the spending on Cloud solutions is minimal. Major challenges that
impact the adoption in this sector are security risks & accountability, SLA & downtimes, and issues
pertaining to regulations & compliance
• Having said this, with the transformation to smart banking, the dependence on Cloud solutions is
showing an increase for enhanced performance & flexibility
• Additionally, analytics is acting as one of the major drivers of SaaS adoption in this sector. RBI has
also encouraged banks to adopt BI & Analytics to enable transparency and automated data flow
Source: IBEF, NASSCOM, Gartner, Deloitte Analysis
66
INDIA: SaaS ADOPTION |

MANUFACTURING
cases in Manufacturing

Industry Size :
$ 390 Bn.(2018)
(excluding Automobile)
Capacity Job Tracking & Quality Defect Reduction

Planning & MRP BoM Tracking Management & Compliance
Management
IT Spend: $ 7
Bn. (2018) Notable Use Cases
• Rootstock is an • Plex is a complete

AssurX is a software
customized ERP for Cloud built ERP
solution built for
Manufacturing catering which caters to a
Software & multiple industries,
to all dimensions large segment of
Services spend: with a customized
of operations of customers, and is
$ 5 Bn. set of modules for
a Manufacturing purpose built for
manufacturing such as:
organization Manufacturing
• Corrective &
• Modules extend across • As a SaaS platform
Preventive Actions
various functions Plex offers insights,
• Manufacturing
including, not limited to Connected and
Quality Mgmt.
-- Financial Accounting Mobile solutions for
• Customer Quality
-- Sales Order its customers
SaaS Share : Mgmt.
Management • Business Management
18-20% • Document
-- Purchase Order functions and
Management
Management manufacturing
• Complaints
-- Production operations are all
Management
Engineering combined as a part of
• Audit Management
the offering
Sector Highlights
• The manufacturing industries in India are adopting digital technologies for improving and efficiently
managing their operations
• Automation in manufacturing processes has led to ample scope for using systems and tools for
ensuring lower costs, high throughput to stay competitive in the global marketplace
• Cloud solutions provide a platform for innovation by help these industries integrate their business
processes, systems and people – enabling faster time to market, expanding reach, etc..
• Cloud-based manufacturing solutions have the capability of reducing infrastructure and maintenance
costs by ~54%, but only 30% of the manufacturing companies leverage them. This is mainly due
to challenges pertaining to integration & migration, business continuity and accountability & risk
impairments
67
INDIA : SaaS ADOPTION |

EDUCATION
cases in Education

Industry Size :
$ 1.8 Tn (2018)
Campus Learning Assessment & Library

Management Management Examination Management
Systems Management
IT Spend:
$ 10 Bn. (2018) Notable Use Cases
• Learning management • Easy to use Learning • Educational ERP solution

system - simplifies Management System using innovative Cloud
Software & the process of that helps create, technology for high
Services spend: conducting or selling manage, deliver and end performance and
online training, track online courses. unbreakable security
$ 0.5 Bn (2018) essentially for Allows sharing • Increases the security
institutions, training documents & videos, system of the school,
centers and individual creating and tracking efficient management
experts assignments, polls, of resources,
• Key services etc. provides complete IT
facilitated are: • Make infrastructure to the
content management, announcements schools, access to 2500+
SaaS Share : review performance via SMS and email. courses video content,
3-4% based on analytics, View reports and 85000+ video lectures
integration with graphical analysis with online exam and
HRMS via API of user analytics, skill developing activities
progress
Sector Highlights
• Implementing Cloud based solutions is helping schools and universities solve the constant struggle of
keeping up with hardware, software and IT staff costs and complexities
• On-premise virtual classroom software come with the challenges of installation and deployment with
large technical and financial requirements
• The e-learning market in India has become the second largest market for e-learning after the US, and
is expected to reach US$ 1.96 Bn by 2021. This provides for an opportunity for SaaS implementation in
the segment
• Private and public professional educational institutions are deploying learning management systems
enabling students to access course work and submit assignments as a key feature
68

RETAIL
cases in Retail

Industry Size :
$680 Bn (2018)
Point of Sale Digital Payments Inventory Distribution

Management Management Management
IT Spend:
$2.3 Bn (2018) Notable Use Cases
• Suite of automation • Connecting kirana • POS for small

solution for consumer stores to organized retailers to large
Software & companies using AI & retail enterprises; by online e-retailers
Services spend: ML to provide structure, helping management • The solutions
$1.1 Bn (2018) visibility, and to enable of stock movement include features
decision-making and usage to like inventory
• Solutions broadly increase sales and management,
include sales force profitability payment
automation, distributor • Does not charge the solutions, loyalty
management kirana stores, instead and marketing,
system (DMS, a once the automation analytics,
SaaS Share: partner relationship moves up the value accounting and
1-2% management chain, companies e-commerce
application), retail use it to move their marketplace
execution and inventory into more
merchandising, and van and more stores
sales automation
Sector Highlights
• The retail sector has experienced large digital transformation in the last decade led by the need to
counter the dominance from e-commerce and recently growing m-commerce
• Chain and established organized retail outlets are investing extensively in deploying Cloud based
solutions in order to manage store and supply chain. However, the Cloud spend from the total IT
budget has been estimated to be only 12-15%
• Centralization of inventory and inter-store fulfillments as a part of enhanced customer service are
driving up SaaS adoption
• The unorganized sector (over 90% of total retail) remains an untapped opportunity for SaaS solutions,
and is limited by low propensity to invest in SaaS and ultimately limited awareness
69

HEALTHCARE
cases in Healthcare

Industry Size :
$160 Bn (2018)
Electronic Patient Online E-Commerce

Health Record Management Aggregation
Management
IT Spend:
$1.4 Bn (2018) Notable Use Cases
• Medium that serves • eClinic Systems is a • A Connected Health

patients by finding medical clinic and Platform - that helps
Software & required doctor practice management key stakeholders
Services spend: and booking an system. Allows users within the Healthcare
appointment to capture patient ecosystem including
$0.7 Bn (2018) • Platform for doctors demographics, Doctors, Specialists,
manage their patients schedule appointments, Consultants, Clinics,
and practice. It maintain lists of Hospitals, Large
offers hassle-free insurance payers, scale Lab networks,
scheduling at all perform billing tasks, Pharma companies
hours and everyday and generate reports. and Pharmacy
access to reports and • eClinic systems is retail chains to
SaaS Share: records designed for all sizes seamlessly Integrate,
2-3% • 1.5 million users, of medical Clinics and Collaborate &
120,000 doctors third-party medical Communicate
and 120,000 billing companies.
appointments through
this portal monthly
Sector Highlights
• Hospitals and healthcare centers are aiming for higher quality patient care, diagnostics and
enhancement of overall efficiency through use of digital technology
• Customer experience is beginning to take center-stage with healthcare providers and they are
deploying Cloud across both clinical care and outpatient treatment perspective
• With sustained wellness being the goal of healthcare service delivery, providers are investing heavily
in Cloud based analytics solutions providing deeper insights on each patient’s performance as well as
health related patterns
• Led by a mere 0.5-1% spend on IT as well as concerns regarding security threats, unstable/ unreliable
connectivity, legacy systems and devices, the adoption for SaaS remains a challenge. The Cloud
spend from total IT budget has been estimated as merely 6-10%
70

LOGISTICS
cases in Logistics

Industry Size:
$ 160 Bn (2018)
Freight Export E2E Supply Collaboration

Procurement Documentation Chain Visibility across PoD,
& Contract & LC Payment and ETA Consignment and
Negotiation Integration Prediction Freight Claim
IT Spend: $0.8 Bn
(includes transportation)
(2018)
Notable Use Cases
• Companies being • Prime offering is • End-to-End Fleet

networked together the digitization Management allowing
to deliver maximum and automation of single window planning
Software &
value to the end- accounts payable of jobs, schedules
Services spend:
user/client through and receivables and communication
$1 Bn (2018) Infor Supply Chain processes, financing of jobs to drivers
• Cloud-based requests instantaneously.
visibility to reduce • Connectivity of • VersaDrive app
any silos in each buyers and suppliers sends drivers latest
dimension of the through a totally run-sheets, sign-on-
supply chain Cloud-based solution glass PoD. Real-time
• Advanced • Document communication such as
SaaS Share : algorithms enable Management across 24/7 tracking through
3-4% the automation of Purchase Orders mobile/web, Customer-
key processes across • Real-time dashboards monitoring and
the supply chain and visibility of SCM Exception Management
ecosystem transactions through alerting
Sector Highlights
• The adoption of SaaS by logistics providers has traditionally remained a challenge due to the
unorganized nature of the sector. Also, it becomes difficult for the SaaS providers to target individual
logistics providers
• However, SaaS for logistic management is gaining lot of traction in India in the past 2-3 years. Heavy
investments are being seen in SaaS based logistics management solutions. Many large players are
also entering this space in India, mainly through mergers & acquisitions
• Also, with the rise of smartphone penetration, app based SaaS solutions bringing the logistics
provider and their customers on a common platform is helping drive adoption
• Major Industry groups in India have adopted digitization at a large scale across their logistics and
supply-chain eco-system thereby driving the demand for relevant Cloud solutions
71

GOVERNMENT
cases in Government

Industry Size:
NA
Data E-Governance Website Office Suite

Management Service Management
IT Spend:
$7.9 Bn Notable Use Cases
• (S3WaaS) is a website • Open Government • Microsoft Azure is

generating and Data (OGD) Platform powering multiple
deploying products India - data.gov.in - is a state government
SaaS Share : hosted on the platform for supporting departments
11–12% National Cloud of Open Data initiatives • Office 365 is being
National Informatics of the Government of used by 2100
Center (NIC) India employees of MIDC
• It leverages • It facilitates government • State Governments
technology to organizations to publish of Andhra Pradesh
generate secure their datasets in open and Karnataka
websites using formats for free public are using AI and
GIGW compliant use Cloud with Cortana
SaaS Share: templates, which are • OGD is also available as Intelligence Suite to
2-3% highly customizable Software as a Service drive citizen services
and can seamlessly (SaaS). and digital inclusion
be deployed on a
scalable software
defined infrastructure
Sector Highlights
• Despite industries increasingly showing high growth rates in IT spending, the same is not true for
the Government (~2% Y-o-Y growth in IT spends only). However, GoI is now steadily moving towards
adoption of Cloud.
• India has embarked on MeghRaj (also known as GI Cloud), a National Cloud Initiative aimed at hosting
various government applications and services on the Cloud
• State Governments are also on the path of introducing initiatives for bringing their functionalities
on Cloud. For e.g. Maharashtra and Rajasthan, Assam and Punjab State Governments have already
introduced their Cloud initiatives
• A common Cloud platform can further enable local governments and it’s instrumentalities to adopt
e-Governance for rendering a higher quality of citizen services, without requiring the setting up of
significant IT infrastructure.
72
INDIA : SaaS ADOPTION

| INTERNET ENABLED
BUSINESSES
cases in Internet enabled businesses

Industry Size:
N.A.
E-Commerce Content Customer Fintech and

Management Management Relationships Adtech
& Loyalty
Management
IT Spend:
N.A. Notable Use Cases
• Cloud telephony • An e-Commerce • Modern messaging

services such as software to build an software to support
virtual phone online store in customer
Software &
numbers and • Includes features conversations,
Services spend:
telephony like managing marketing, sales
N.A. applications for products sold • Features include
small and medium online, customize people segmentation,
enterprises in India store, order triggered messaging,
• Includes features management, online IN-app campaigns,
like call center marketing, digital lead generation, real
solutions, payments, customer time dashboard,
marketplace lead engagement, etc. performance analysis,
SaaS Share : management, etc.
N.A. automated delivery
re-scheduling, OTP
service, etc.
Sector Highlights
• Organizations have been moving to Cloud & Cloud based solutions for a multitude of business
processes as well as data management
• SaaS solutions are being deployed across functions to ensure end to end customer journey visibility
as well as visibility of back-end process performance
• As efficiency in operations and overall profitability remain in the focus, SaaS solutions are providing
a dual advantage both in terms of lower costs for deploying complex IT systems as well as efficiency
enhancement due to tools and features
• Internet-enabled companies are capturing the pie in most industry sectors. These companies at the
forefront of SaaS and Cloud adoption, and are driving demand for Cloud solutions in traditional
companies as well
73
INDIA : MARKET SIZE
India SaaS market is estimated to grow ~3X to USD 3.3-3.4 Bn by

2022
SaaS is growing rapidly in the Domestic market……
3.9 – 4.0
3.3 – 3.4
36%
CAGR 2.6 - 2.7
2.0 - 2.1
1.8 - 1.9
1.6 - 1.7
1.0
2018 2020F 2022F
….owing to various demand drivers
Lack of advanced features in legacy Better Product Fit – E.g. Mobile

software – enterprises moving away – first products enabling faster
from older version of software – adoption
mostly available on Cloud
Opportunities in SMB sector (which Increasing number of start-ups

is a large proportion in India) being using SaaS solutions for business,
tapped by developing specific solu- inspiring traditional enterprises to
tions for them adopt technology
Forecasted India’s SaaS Estimated CAGR

market by 2022 (2018-22)
47% ~2.6 - 2.7 Bn. ~3.4 Bn. 36% 9%
Of forecasted Cloud Estimated SaaS market SaaS as a % of the

market is expected to be by the end of 2022 Software & Services
delivered by SaaS by 2022 demand in India (2022)
74
INDIA : EXPORTS
With over 70% of demand for Indian-produced SaaS coming from

overseas, exports will enable us to reach over 20% of the Global
Market Share
SaaS Exports Forecast (2017 Onwards) in USD Bn.
19-20
6%
=4
GR
CA
8-9
2-3
2017 2020 2022
Overview Future Outlook

• Global SaaS Solutions providers based in India in- • SaaS produced in India is expected to touch ~
dicate only 30% of their consumption is domestic USD 19-20 Bn by 2022, growing at 46% (CAGR)
• Over 70% of the consumption is international, between 2017-22
with North America being the largest consumer of • Aforementioned number is approximated at about
Indian SaaS 30% of the global SaaS demand
With demand growth expected to remain high in the USA and other Western markets, over 20% of the
global demand may be captured with relative ease by Indian SaaS providers
75
INDIA : FACTORS DRIVING SaaS

EXPORTS
Supply side factors provide India with a strong value proposition for
catering to global SaaS demand through exports…
India – A low cost platform for development of Abundant talent availability for development
software
$70-80K $70-75K
$50-60K
125
Million English
speaking
1.5 people
Million
engineers
$20-25K graduating
every year
$8-10K 3.9
Million people
USA Japan China India UK engaged in IT/
ITeS
• The country boasts of more than 125 Mn English

• Established IT outsourcing destination offering
speaking people – the second largest in the world
variety and high end skills at a price lower than
after USA, and has 1.5 million
similar destination across the world
engineers graduating every year
• Entry level salary in India for a software devel-
• India remains a global hub for talent in IT/ITeS
oper is around USD 9000 per annum against a
sector with latest estimates putting the total num-
USD 70,000 in United States
ber of employees in this sector at ~3.9 Mn
• India has a strong network of government
recognized IT/ ITeS promotion bodies and tax
incentives for the sector
Source: Glassdoor, Forbes, News Article Hindustan Times 23August 2017, MeitY
76
Mature sales eco-system Development of world-class products
Comparison of workforce number & cost between

US and India (2016)
Provides analytical platform for FMCG companies.
It is built on AI and ML to provide instant actionable
insights to the sales leadership as well as the feet-
on-ground to effectively push sales
500
300 Freshworks, provider of Cloud-based business

software, launched Intelligent Workflows. They state
it to be a marquee feature in Freshsales, which is its
Inside CRM product
50 Sales
120 Ready
13
USA India
Cost/ FTE ($K/annum) Workforce (‘000)
Agricx has developed an artificial intelligence (AI)
and machine learning (ML)-based SaaS solution to
simplify the grading system and eliminate variability
in the quality of produce sourced
SaaS companies are embedding AI and ML capabil-

• In the year 2016, the average cost/FTE in India
ities in their solutions to enable them to help clients
was almost 74% lower than the cost/FTE for a
understand their user behavior and optimize the
similar resource in the US
access for feature functionalities
• For the same period, India has over 66% higher
workforce, of which 24% was Inside Sales ready
Source: Google-Accel report, 2016
77
INDIA : SaaS INVESTMENTS
Investments in Indian SaaS companies have garnered over USD 1.6

Bn in the last 7-8 years
Increased investments in SaaS industry in India is acting as a catalyst for India to become a SaaS hub Inves-
tors are continuously pumping in money in new innovative start-ups and helping them grow globally
Year No. of SaaS companies Investment (USD Million)

2010 42 23
2011 50 55
2012 72 118
2013 65 107
2014 71 232
2015 73 562
2016 24 329
2017 7 258
These increasing investments The success of early start-ups Indian start-up’s world-class
are leading to surge in SaaS like Zoho and Freshdesk, who solutions combined with easy
start-ups in India have made a mark globally, have access to global customer base
added to this surge online, will help India become a
strong player in the global SaaS
industry
78
SaaS : CHALLENGES
Despite being around for a decade and showing resilient growth

and business advantages, SaaS ecosystem in India is facing certain
challenges
Limited Understanding Diverse Nature of Lack of Advanced

of SaaS Benefits Indian Market Skillset
Abundant talent but

Pricing Limited geographical lack of specialized
spread Cloud related skills
Relationships and
Data security FOS – sales based Lack of sales and
model marketing talent
Data privacy Unattractive market

for small enterprises
79
80
Section IV
CLOUD GROWTH –
STRATEGIC DIRECTION &
POLICY CONSIDERATIONS
81
SECTION SUMMARY
Policy decisions by The Government of India for development of
Cloud ecosystem
01
Globally, increasing number of countries are embarking on initiatives for
development of Cloud ecosystem, the prominent ones being, ‘Cloud first’ policy,
providing financial incentives for setting up data centers, providing Government
instituted Clouds to promote innovation, etc.
02
The Government of India in NDCP 2018 has stated the vision for Cloud as ‘Establish
India as a global hub for Cloud computing’ and has taken multiple steps for its
growth: ‘Cloud first’ guideline (MeghRaj) along with NIC provides Cloud services
03 ‘Data protection bill’ (currently under discussion) focusses on ‘Data privacy and
confidentiality’
04
The GoI is required to thoroughly evaluate the consequences of data localization
including industry impact, economic impact, impact on data privacy and security
before implementing data localization
05
In order to set a strategic direction for the Cloud, we recommend that GoI setup
out tangible targets for Cloud e.g. % of Govt. IT spends on Cloud, % of India’s share
of Global outsourcing market
06
In order to boost the overall implementation, rollout and adoption of Cloud, basic
infrastructure such as reliable and high quality power for Data Centers, affordable
data plans for consumers on high speed & reliable internet are a must-have
Source: Gartner Cloud Forecast 2018Q1, Industry reports, Deloitte Analysis
82
GLOBAL : ECOSYSTEM
DEVELOPMENT MEASURES
Increasing number of countries are taking steps for development of
Cloud ecosystem within their countries
# Objective Key actions taken Countries

1 Encouraging adoption • Cloud first policy: Guidelines for govt.
of Cloud by Govt. departments to adopt Cloud
Australia UK South Singapore
department & • Incentive for public enterprises for Korea
enterprises adopting Cloud
• ‘Cloud consortia’ encouraging work-
Japan Malaysia Philippines
ing groups to collaborate
2 Promote country as • Tax breaks and financial incentives

hub for outsourcing for companies operating data centers
US Singapore
3 Enabling easy • Simplifying procurement guidelines

implementation of
UK
Cloud
4 Promoting innovation • Providing platform for innovation

in the Cloud space • Regulatory sandbox
Singapore UK
5 Promoting cross- • Support for cross border data flows

border data flows in data protection laws UK USA Europe
• Adoption of APEC CBPR
Australia Singapore Japan
83
INDIA : ECOSYSTEM
DEVELOPMENT MEASURES
Indian government has also taken multiple steps to make India a
Cloud conducive market
2018
2013 2014
– Feb
Cloud-first policy NIC Cloud services NDCP, 2018 – Establish

(MeghRaj) (for Govt. organizations India as a global hub
& PSU’s)
Cloud First Policy under ‘Meghraj’

• Government of India (GoI) embarked upon its Cloud initiative in 2013 the
focus of which was to accelerate delivery of e-services in the country and
also optimize the tech spending of the Government. This initiative has been
named as “MeghRaj”.
NIC Cloud Services

• National Informatics Center (NIC) started providing Cloud services to
consumers (services are open to Government & PSU only as of now). The
first National Cloud was setup by NIC in 2014
NDCP 2018: Cloud Vision for India 2022

• TRAI in National Digital Communications Policy, defines Cloud vision for India
2022 as “Establishing India as a global hub for Cloud computing, content
hosting and delivery, and data communication systems and services ”
Source: Deloitte Analysis
84
DATA LOCALIZATION :
OVERVIEW & IMPACT
Overview of data localization and its impact in India
What is Data localization?

“Data Localization” refers to public policy efforts by a jurisdiction, requiring storage of data within that juris-
diction’s boundaries
What does it Imply ?
Require that data or a copy of it be hosted on local servers or restrict transfer of data outside national borders
# Objective Impact on India Severity Key observations

1 Competitiveness Increased cost to serve, thus • EU countries have witnessed
of Indian Cloud higher price for end customer as high as 10-54% increase in
industry cost to serve
• Data center setup costs are
~10% higher in India com-
pared to Singapore & Japan
• Similar policies by other
countries will impact the
NDCP’s goal of making India a
global hub
2 Cloud start-up Reduced competitiveness due • Cloud startups in India have
growth to higher prices gained major share in the
global tech startups ecosys-
tem e.g. Zoho, freshworks
3 Investment in Cloud Short term: Increased invest- • Potential boost in investment
infrastructure ments in Cloud infrastructure in
Long term: Reduce focus on short term, but reduced com-
India petitiveness in long run
4 Security & confiden- Increased security of data • Industry players believe that
tiality of data critical to national security and this would lead to higher vul-
issues nerability rather than security
of data
5 Access to innovative Reduced access to foreign • Brazil faced a significant
solutions based innovative Cloud solu- resentment from industry as
tions data localization curtailed
access to innovative foreign
solutions
6 India GDP Reduced demand from global • Even a 5% retaliation towards
as well as Indian enterprise Indian IT/BPO would result in
customers a loss of USD 7 Bn. per annum
Low to High
85
INDIA : RECOMMENDATIONS
India should take a balanced view on impact of data localization on
industry competitiveness, India’s economy and the overall goal of
making India a global hub for Cloud computing and data processing
Vision Targets
“To establish India as a global hub for Set a roadmap with indicative performance
Cloud computing “ targets being
& • Cloud as % of Govt. spend
“A leading Cloud consumer as a % of its IT • Cloud as a % of India’s share in Global
spend” outsourcing market
• No. of Cloud start-ups nurtured under
“Start-up India”
Policy
• Take a balanced view of impact on Cloud industry, economy, industry competitiveness and
data privacy to evaluate data localization
• Enact a Data Protection Bill that promotes privacy and security while ensuring industry
competitiveness and a vibrant ecosystem for Cloud service providers
• Promote cross-border data flows to improve Indian global competitiveness
86
APPENDIX
87
RESEARCH METHODOLOGY
Details of Research Tools and Methodology
A. Demand assessment B. Supply assessment C. Enabler assessment
Primary Secondary Primary Secondary Primary Secondary

Research Research Research Research Research Research
Individual • Company Individual • Company Individual • Company
discussions: websites discussions: websites discussions: websites
• Large banking • Databases • Large global • Databases • Large global • Analyst
companies such as Cloud such as Cloud reports
• Leading Gartner, IDC computing OVUM, consulting
healthcare • BSA, ACCA companies Forrester, players
players reports • Small to Gartner • Medium to
• Unicorn • Analyst medium • Deloitte large Cloud
startups in the reports Cloud brokers, Internal implementation
fintech space infrastructure Sources service
• Emerging and providers
startups in colocation
manufacturing service
• Large providers
e-commerce • Small to
players medium SaaS
companies
Estimating the market size
• in-depth interviews with stakeholders from throughout the Cloud computing ecosystem consisting
of many small to large enterprise Cloud customers, supply side Cloud players and Cloud enablers.
• Insights on major technology & market trends, demand & supply side drivers, regulatory scenario,
opportunities & challenges for future state analysis.
Secondary Research
• referring to verified data sources such as independent studies, government and regulatory
published material, technical journals, trade magazines, and paid data sources.
• Detailed assessment of the end user spending on IT and Cloud offerings across various large
markets in the world. This study forms the basis of our India Cloud market estimates.
Estimating the market size
• Year refers to Calendar year (January – December); 2018 being taken as the base year to forecast growth
• Cloud spending includes domestics spend on SaaS, IaaS (only public Cloud), PaaS, Cloud business
process services and Cloud management and security services
• The end user IT spending includes spending by enterprises on Data center systems, Devices
(excluding Mobile phones), Software, IT Services, and Communication Services (excluding consumer
communication)
• This IT spend has been taken as a base to estimate the Cloud penetration in India and the forecasted
growth by comparing this penetration with that of other developing as well as developed nations
• For estimating the market and forecasts for IaaS, the total IT Infrastructure has been taken as a base.
This IT infrastructure spend constitutes of spend on Data Center systems as well as public IaaS
• In the case of SaaS, Software & Services has been considered to estimate the market. The software
spend does not include spend on hardware.
88
LIST OF PARTICIPANTS
We would sincerely thank and acknowledge the following

organizations and their representatives for their consistent
enthusiasm, support and knowledge sharing towards the creation of
this report
Sr. Details
1 Microsoft Azure, Ashutosh Chadha, Sriram Bhagavatula, Mandar Kulkarni, S Changrasekhar,

Arati Mukerji
2 Google Cloud, Chetan Krishnaswamy
3 RackBank Pvt. Ltd., Narendra Sen
4 British Telecom, Sudhir Narang
5 ESDS, Piyush
6 Pi Datacenters, Kalyan
7 Cloud Mantra, Nilesh More
8 BlazeClan, Mahesh Deodhar, Veeraj Thaploo
9 Cognizant, KS Ganesan
10 Mindtree, Chitra Byregowda
11 Kotak Mahindra Bank, Aruna Rao
12 HDFC Bank, Munish Mittal, Nitin Chugh
13 Narayana Health, Viren Shetty
14 Apollo Hospitals, Arvind Sivaramakrishnan
15 Policybazaar, Ashish Gupta (CTO)
16 Myntra, Jeyandran Venugopal
17 ID Fresh, Mustafa
18 Aaumgroup, Rajesh Kumar
19 Knowlarity Communications Pvt Ltd, Ambarish Gupta
20 LogiNext, Dhruvil Sanghvi
21 Pentation Analytics, Kamal Kishore Das, Parmeet Singh
22 Zoho Corporation Pvt Ltd, Shailesh Kumar
23 Mobisy, Akshay Dsouza
89

PLAYERS
Cloud Ecosystem | Global players

Offering Focus
Brokers/ Worldwide Key Products of ESDS:

System • Managed Data Center
Integrators • Managed Cloud Solutions
• Virtualization
ESDS is one of the India’s
• Disaster Recovery Hosting
leading Managed Data Center
Service and Auto-Scalable Cloud
Solution Provider
Founded & HQ: April 2007;

California, USA
Brokers/ Asia Key products of Pi Datacenters:
System • Disaster as a recovery
Integrators • Enterprise applications on the
Cloud
Pi Datacenters is Asia’s largest
• Cloud Hosting
uptime certified tier IV, state-of-
• Platform as a Service
the-art, greenfield datacenter
• Infrastructure as a Service
organization, based in Amravati,
Andhra Pradesh
Founded & HQ: 2014; Amravati,

India
Brokers/ Worldwide Key offerings of Cloudmantra:
System • Consulting
Integrators • Migration
• Big Data
Cloudmantra is a start-up
• Security
providing AWS and SMAC
• Back up/Disaster Recovery
services to start-ups, corporates,
enterprises and consumers
Founded & HQ: 2012; Pune, India

Brokers/ Worldwide Key offerings of BlazeClan:
System • Cloud Advisory
Integrators • Cloud migration services &
deployment
BlazeClan is a leading AWS Cloud
consulting company, offering
• Big Data & Analytics
consulting, Cloud migration,
• Cloud Native app &product
managed services product
development
development, data warehouse,
• DevOps
big data on AWS
90

Offering Focus
Brokers/ Worldwide Key Offerings of Tata Communications:

System • IZO platform
Integrators • Application aware networking
Tata communications offer a full • Managed security
breadth of solutions and global
reach to support clients Cloud
needs

Brokers/ Worldwide Key offerings of CtrlS:
System • Co-location services
CtrlS is a Tier-4 Data center in Integrators • Managed Services
India which deals with large group • Banking community Cloud
of networked computer servers • ERP community Cloud
used by various organizations for • Remote Infrastructure Management
remote storage (RIM)
• Work Area Recovery (WAR)
Founded & HQ: 2007; Hyderabad, • SAP Colocation Services
India • SAP HANA Hosting
Brokers/ Worldwide Key offerings of Netmagic:
System • SimpliNet Load Balancer
Netmagic, an NTT Integrators • SimpliNet Virtual firewall
Communications company, is • SimpliStor
India’s leading Managed Hosting • Cloud computing
and Cloud Service Provider • Managed Security
• Disaster Recovery-as-a-Service
Founded & HQ: 1999; Mumbai, (DRaaS)
India • Software-Defined Storage
Brokers/ Asia Key Offerings of DigitalOcean:
System • Cloud Computing
DigitalOcean, Inc. is an American Integrators • Cloud Servers
Cloud infrastructure which • Virtual Hosting
provides developers Cloud • Cloud Hosting
services that help to deploy • Cloud Infrastructure
and scale applications that run • Simple Hosting
simultaneously on multiple • Virtual Servers
computers
Founded & HQ: 2011; New York,

USA
Cloud Worldwide Key offerings of Mindtree:
Computing • Cloud strategy services
• Cloud migration services
Mindtree delivers a • Cloud infrastructure and
holistic approach to Cloud implementation services
transformation that accelerates • Cloud security and governance
a company’s move to digital services
businessFounded & HQ: 1999; • Cloud management services
Bangalore, India
Cloud Worldwide Key offerings of Cognizant:
Computing • Cloud Strategy and Consulting
Cognizant Cloud360 hyper • Cloud Application Services
platform is a manager of • Cloud Management Services
enterprise Cloud services that • Cloud Infrastructure Services
delivers as on-demand service • Cloud Software Services
experience for better Cloud
governance
Founded & HQ: 1994;New Jersey,

USA
91

Offering Focus
Cloud Worldwide Key solutions of HCL:
Computing • On-premise Cloud assessment
HCL, a leading global technology • Cloud design consultancy
services company, offers solutions • Private Cloud build
and services to help enterprises • Cloud transformation
achieve their Cloud goals • Operations and Optimization
Founded & HQ: 1976; Noida, India
SaaS Worldwide Key solutions of Mobisy:
• Sales force automation
• Enterprise mobility
Mobisy Technologies Pvt.
• Supply chain automation
Ltd. aims to put the power
• Mobile application development
of technology and data in the
• Retail e-commerce application
hands of ordinary field sales and
• CPG sales automation
supply chain workers and help
• Distribution channel automation
them sell smartly and efficiently.
• Retail execution
Founded & HQ: 2007; Bangalore,
India
SaaS Worldwide Key offerings of GeniSIGHTS:
• E-retail: market basket analysis,
GeniSIGHTS is established market modelling, AB testing, Uplift
with a focus on researching modelling and data analysis
and devising the sophisticated • Travel: pricing analysis, customer
analytical techniques to solve the segmentation
pressing needs of the businesses. • Finance: Credit scoring, portfolio
optimization
Founded & HQ: 2016; Chennai, • Telecom: churn analysis, market
India basket analysis, pricing and
performance analytics
SaaS Worldwide Key solutions of Chargebee:
• Integrate payment gateways
Chargebee handles all crucial • SaaS Metrics
workflows from lead to ledger • Email notifications
with power packed integrations • Accounting
that include Salesforce, Xero, • Customer Management
Quickbooks, Avalara, Slack,etc.
Founded & HQ: 2011; Walnut,
California,USA
SaaS Worldwide Key offerings of CloudCherry:
• Customer experience management
CloudCherry is Customer • Key performance metrics
Experience Management software • Churn management
that helps global enterprises • Omni-channel experiences
improve customer experience, • Brand experience
track customer journeys and boost
profitability.
Founded & HQ: 2013; Salt Lake

City, USA
SaaS Worldwide Key offerings of Exotel:
• Smart business phone system-
Exotel is a Cloud telephony IVR, call recordings and analytics,
platform that powers missed call alerts, custom call flow
communication for enterprises, builder
startups and small and medium • Allows user to make calls directly
enterprises in India. It provides from user’s browser without
APIs that help companies devise copying numbers
their communication flow
Founded & HQ: 2011; Bangalore,

India
92

Offering Focus
SaaS Worldwide Key offerings of Freshdesk:
• Extensive multi-channel support-
allowing agents to track, assign,
Freshdesk is Cloud-based resolve customer queries
software company which •
focusses on cross-functional
team collaboration to deliver
exceptional customer support
Founded & HQ: 2010; Chennai,

India
SaaS Worldwide Key offerings of Loginext:
• Real time tracking
• Field salesforce automation
Loginext is enterprise logistics • Dynamic route planning
management software where • Location intelligence
solutions are designed to serve • Delivery automation software
all client needs using smart • Supply chain optimization
technology and big data analytics • On-demand delivery software
enabling comprehensive field
service management.
Founded & HQ: 2014; California,

USA
SaaS Worldwide Key solutions of Zoho:
• Web based business tools
• IT solutions
Zoho is a web-based online • Business productivity suite
office suite containing word • Network management
processing, spreadsheets, • Enterprise IT management
presentations, databases, note- • Social media management
taking, wikis, web conferencing, • Invoicing
customer relationship • Email marketing
management, project
management, etc.
Founded & HQ: 1996; California,

USA
SaaS Worldwide Key offerings of ADAS:
• ERP solutions
• Software development
• Website application
ADAS technologies help provide
• Search engine optimization
its clients end-to-end business
solutions by creating software’s
that are creative, innovative
and technically sound in order
to meet the requirements and
objectives
Founded & HQ: 2006; New Delhi,

India
93
GLOSSARY OF TERMS
Sr. Abbreviation Explanation

1 CAGR Compound Annual Growth Rate
2 USD United Stated Dollar
3 IT Information Technology
4 GDP Gross Domestic Product
5 AWS Amazon Web Services
6 EC2 AWS Elastic Compute Product
7 Bn Billion
8 Mn Million
9 IoT Internet of Things
10 AI Artificial Intelligence
11 NIST National Institute of Standards & Technology
12 IBM International Business Machines Corporation
13 CRM Customer Relationship Management
14 SaaS Software-as-a-Service
15 PaaS Platform-as-a-Service
16 IaaS Infrastructure-as-a-Service
17 DaaS Data-as-a-Service
18 DBaaS Database-as-a-Service
19 IPMaaS Identity & Policy Management-as-a-Service
20 NaaS Network-as-a-Service
21 VaaS Video-as-a-Service
22 HaaS Hardware-as-a-Service
23 BPM Business Process Management
24 CAPEX Capital Expenditure
25 OPEX Operating Expenses
26 MSME Micro, Small & Medium Enterprises
27 ML Machine Learning
28 CSP Cloud Service Providers
29 R&D Research & Development
30 FTE Full Time Equivalent
31 API Application Programing Interface
32 RAM Random Access Memory
33 CPU Central Processing Unit
94
Sr. Abbreviation Explanation

34 APAC Asia-Pacific
35 ACCA Asia Cloud Computing Association
36 CRI Cloud Readiness Index
37 INR Indian Rupee
38 UPS Uninterrupted Power Supply
39 FSI Floor Space Index
40 YoY Year-over-Year
41 HR Human Resources
42 BI Business Intelligence
43 SME Small & Medium Businesses
44 CY Calendar Year
45 FOS Feet-on-Street
46 OS Operating System
47 ISO Uncompressed Disk Image File Format
48 STaaS Storage-as-a-service
49 IP Intellectual Property
50 UIDAI Unique Identification Authority of India
51 Discom Distribution Company
52 SME Small & Medium Scale Enterprise
53 GST Goods & Services Tax
54 ITIF Information Technology and Innovation Foundation
55 MNC Multinational Corporation
56 BPO Business Process Outsourcing
57 SKU Stock Keeping Unit
58 GDPR General Data Protection Regulation
59 EU European Union
60 GoI Government of India
61 NIC National Informatics Center
62 NDCP National Digital Communications Policy
63 TRAI Telecom Regulatory Authority of India
64 PSU Public Sector Undertaking
65 UK The United Kingdom of Great Britain and Northern Ireland
66 US United States of America
95
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Detailed list of participants have been listed in the appendix section.

BACKGROUND, SCOPE &

OBJECTIVES OF THE STUDY

To understand the key Cloud computing types,

To analyze SaaS demand and adoption levels

Key characteristics include Global Cloud spending

This growth is estimated on account of multiple factors (both demand

Tier II and rural markets in

India now has a globally Improved infrastructure

Recent adoption and growth of

Cloud Growth – Strategic Direction & Policy considerations

A sharper focus on the

To set a strategic GoI through NDCP

Additionally, action by industry players such as driving enterprise awareness on

Section I. Cloud Computing  11

Section II. Infrastructure as a Service - IaaS  43

Section III. Software as a Service - SaaS  59

Section IV. Cloud Growth – Strategic Direction & Policy considerations  81

Source : Gartner Cloud Forecast 2018Q1, Industry reports, Deloitte Analysis

Technology has seen rapid evolution since 1960s – From

Cloud Computing 2018:

Desktop 2000’s 2010:

Data center • Major player Open Source • Cloud

2000-05 2006 2007-08 2008-09 2009-10 2009-12 2012-18 2018

Cloud Computing is a model for enabling ubiquitous, convenient,

Cloud Deployment Types

Private Cloud Hybrid Cloud Public Cloud

The Cloud infrastructure is It is a composition of two The Cloud infrastructure

Considerations supporting Considerations supporting a Considerations supporting

For businesses with CIOs report fear

Facilities / Monitoring / Support

Software-as- Platform-as- Infrastructure-as-

GLOBAL : KEY TRENDS

• Real time analytics er

Trends impacting Cloud

Business model Data & InfoSec

GLOBAL : KEY TRENDS |

Drivers Opportunity for Cloud adoption

• With proliferation of IoT use • Edge computing leading to

• Higher computing • Machine learning and

• Increased computing • Cloud systems are obvious

• 5G leverages small cell • Improved access to Cloud

GLOBAL : KEY TRENDS |

Drivers Opportunity for Cloud adoption

• Allows businesses to • Flexibility to cater to

• Allows businesses to • XaaS allows businesses the

• Cloud ecosystem provides • Getting teams to focus on

GLOBAL : KEY TRENDS |

Drivers Opportunity for Cloud adoption

• Ability to experience • Compute & storage

• Increasing consumer • Cloud solutions are

• Technological advances • Data generated by

• Enterprises’ need to optimize

GLOBAL : KEY TRENDS |

Drivers Opportunity for Cloud adoption

• Ever growing complexity • Companies have to either

GLOBAL: MARKET SIZE

x% Represents Cloud spend proportion of total IT spend

x% Represents 18’-22’ CAGR of total IT spend In USD (Bn.)

Non Cloud (Bn USD) Cloud (Bn USD)

Section I. Cloud Computing 11

Section II. Infrastructure as a Service - IaaS 43

Section III. Software as a Service - SaaS 59

Section IV. Cloud Growth – Strategic Direction & Policy considerations 81