Currently, the Indian market does not have a mature ecosystem, which supports cloud IaaS services. A few players from the service provider segment such as Tata Communications, Wipro and NetMagic have announced services, which are likely to evolve into more stable cloud offerings.
Tata Communications, for example, offers its customers an advanced virtualized environment with flexible arrangements to enhance capacity. Infrastructure providers of the cloud such as VMWare, NetApp and IBM have crystallized offerings for the private cloud and have taken proactive steps in educating consumers on the benefits of cloud IaaS services.
Some of the challenges the market currently faces include:
- Ecosystem maturity
- Customer awareness of services
The market is seeing a concerted effort in the related “software as a service” (SaaS) space. The SaaS market is increasingly gaining acceptance in the SMB segment, indicating a shift in the thought process of CIOs and IT decision makers.
The IaaS market is also likely to benefit from the increasing maturity of these related markets.
Responses to the EY survey on timeframe to adoption indicated that more than 70% of the respondents are looking to adopt the technology in the next three years. The implied pattern of adoption is also indicative of an innovation diffusion curve, with a significant mainstream market developing in the next three to five years.
Perceived benefits of implementing cloud IaaS services
The potential benefits of a well-designed and well-executed cloud-computing infrastructure services strategy can be significant. The relative importance of each benefit varies considerably with the size of the enterprise. The key benefits include lower costs, an on-demand self-service model, low-entry barriers and the elasticity and scalability of resources.
What are the perceived benefits of cloud IaaS services in the Indian market?
Deep dive discussions with participants indicated a distinct difference in the perceived benefits of cloud by the SMB and enterprise segments. The SMB segment considers cloud IaaS for “true” cloud benefits, while the large enterprise perceives benefits on the operational side that are generally derived from an outsourcing model.
- The SMB segment has cited high uptime as the top operational benefit, while large enterprises regard a lower risk of technology obsolescence as the most important operational benefit.
- The SMB segment regards usage-based payments and low capital investments as extremely significant business benefits, while the large enterprise perceives the ability to focus on core activities as the top business benefit.
Cost does not seem to be a factor driving the decision to adopt cloud IaaS services. Surprisingly, both the SMB and large enterprise segments have given lower priority to other typical cloud benefits such as the ability to innovate and faster deployment. This may be indicative of an awareness gap of the differentiated benefits that cloud IaaS services are capable of delivering.
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