Cloud computing will help decrease the effects of capital expenditures as the cloud will help manage costs.

1. Impact of Cloud Computing in India
Did you know that the total cloud computing market in India is pegged at $110 million and is expected to reach
figures of $1,084 million by 2015? An article by Zinnov Management Consulting, titled “Cloud Computing in India:
Opportunities & Way Forward,” explains that in the cloud computing market in India, Software-as-a-Service has
witnessed the most rapid uptake until now. The study further adds that “as components of the overall cloud
market, Software-as-a-service (SaaS) in India is likely to reach a mark of US$ 650 million by 2015, while Platform-
as-a-service (PaaS) and Infrastructure-as-a-service (IaaS) markets cumulatively would touch $434 million each by
then.” In fact, sometime last year, Microsoft’s CEO Steve Ballmer had opined in the press that "India will not only
see a surge in cloud computing services but companies all over the world will look to India to support their
transition to cloud computing.''
With so much confidence being shown for cloud computing in India, the fact remains that cloud computing in
India is still in its very early stages and enterprises are yet to fully comprehend the actual benefits of private
clouds, public clouds or even IaaS, PaaS and SaaS. Although India has shown ample scope of cloud computing
services being used by IT enterprises, enterprises are still unsure about adopting the cloud. The Indian IT
industry, which grew from a $100 million industry to an industry that has crossed the $50 billion mark in 2010,
relies mostly on outsourced software work. The companies that have understood the changes that cloud
computing can bring to their core businesses have already started evolving to being not just providers of software
solutions but also software utility companies.
Indian enterprises are slowly growing aware that the cloud will be useful in terms of management and network
infrastructure and will also help optimize service models. Additionally cloud computing will help decrease the
effects of capital expenditures as the cloud will help manage costs. For cloud computing truly to prosper there is a
need to deploy a platform that can be as significant and large in scale as Google and Amazon are currently. Also
cloud computing providers do not have large data centers that are capable of large scale services. Issues that may
hinder building better and bigger data centers in India include irregular electricity supply and network
connectivity, among others. Also the bigger question of security also crops up. Yet with all such issues, there is a
slow but definite shift in interest towards cloud computing by most Indian enterprises.