Government’s recent announcement of incentives for Indian Cloud companies is a welcome move for the sector
It is encouraging to note that the Government is looking at incentivizing domestic cloud companies to scale their operations as it is in line with the government’s Atmanirbhar Bharat policy. The Union Minister of State for Science and Technology, Rajeev Chandrashekar in a Twitter Spaces interaction a few days ago said that the Government is planning an incentive scheme to help domestic cloud technology companies and startups tackle the domination of Microsoft, Amazon and Google in this space.
Sridhar Seshadri, CEO & Co-Founder, Spotflock Technologies Private Limited, “The Minister’s announcement is encouraging for the domestic cloud industry, as it will not only be cost-effective but the cost of hosting will reduce for the Indian companies. This will lead to further adoption of this service by a large set of Indian companies.’’
India’s overall public cloud services market is projected to hit US $13 billion by 2026, expanding at a CAGR of 23.1 percent in 2021-26, according to research firm IDC. The market’s revenue totaled US $ 2.8 billion for the first half of 2022.
Seshadri added, “Our experience has shown that a large number of smaller companies are keen to move on to the Cloud as they find it more convenient and there are economies of scale that they can leverage as they compete with global companies. It is not only the private sector that will benefit from Cloud adoption but Public Sector Undertakings will also reap the benefits.’’
The Indian start-up ecosystem is growing at a fast pace and there is a demand for Cloud adoption, but rising costs impact the demand for the services.
The Cloud industry in India is resilient and it has shown a growth of over 23 percent, which is amongst the highest in the world. This has encouraged many Indian companies to offer Cloud services. In fact, there are many such firms offering services to various state governments in India.
Seshadri concluded, “We have observed a lot of interest amongst Indian companies especially, those in the growth stage and those that are keen to maintain cost advantages in terms of services and they are open to Cloud services as they see value in the whole proposition. This move will lower the costs and grow the Indian IT industry.’’