Indian Economy News

SMBs can account for 30% of India's public cloud market: Nasscom

  • IBEF
  • September 21, 2020

Cloud adoption has allowed clients to resolve queries more efficiently, reduce costs and uncertainties, and improve efficiency.

Small and medium businesses (SMBs), which form the backbone of India's economy, have the potential to account for 28-30 per cent of the public cloud sector, says Nasscom study entitled 'SMB Cloud Adoption in India: Towards a First Nation Cloud,' released on Friday.

In FY19, SMBs accounted for revenue of US$ 952 billion which translates into 34 per cent of GDP share and employed 110 million people, second only to agriculture. According to Nasscom, India's public cloud market is rising at a CAGR of 30 per cent to cross INR 630 billion (US$ 8.56 billion) by FY25, from INR 170 billion (US$ 2.31 billion) as of FY20.

According to the report, though the covid-19 pandemic has seriously affected the SMB market, SMBs that have an online presence have shown greater resilience and are expected to see short-term revenue gains.

SMBs in India are in the process of being digitally savvy, as per the report. Over 60 per cent of SMBs surveyed, though with varying degrees of maturity, have already adopted cloud. Technology-first segments such as e-commerce and IT-BPM firms lead in cloud adoption followed by banking, financial services & insurance (BFSI), media & entertainment, retail, automotive, healthcare and manufacturing.

Mr Debjani Ghosh, Nasscom president said that as India aims to become a cloud-first nation and with the government's drive for MSMEs to embrace the cloud, it will be essential for India's SMBs to think of themselves as digital companies and lead India's e-revolution.

As per the Nasscom, the pandemic has also accelerated cloud adoption for SMBs as they seek business continuity and collaboration in a distributed environment. This is driving demand for collaboration & conferencing tools, customer relationship management (CRM), business intelligence, marketing and security tools as well as managed services

Cloud adoption has helped clients to resolve requests more efficiently, reduce costs and complexities, and improve efficiency. Customers saw an improvement in productive gains of 20-25 per cent and a 15-20 per cent reduction in operating costs.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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