Navigating through the Cloud Opportunities in India by Naveen Mishra, Research Director, Gartner, at AWS Partner Summit Mumbai 2018

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Monetizing Cloud Opportunities
in India
Naveen Mishra
Research Director

2. Cloud
Is the
Foundation
for
Digital Business

3. 2 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
Key Issues
1. What are the key cloud market dynamics — Today and over the next
five years?
2. How is enterprise cloud usage changing?
3. What are the key opportunities for partners to plan for to capture
opportunities today and in the future?

4. 3 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
Key Issues
1. What are the key cloud market dynamics — Today and over the next
five years?
2. How is enterprise cloud usage changing?
3. What are the key opportunities for partners to plan for to capture
opportunities today and in the future?

5. 4 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
© 2018 Gartner, Inc.
Base: All answering, excludes DK, n varies by segment
Showing the 10 most common answers per segment, coded open-text responses
What are the technology areas where your organization will be spending the highest amount of new or additional funding in 2018?
See "2018 CIO Agenda: An India Perspective" (G00346759)
Top 10 Technology Areas Attracting New Spending: CIO Survey
Top 10 Technology Areas Attracting New Spending
Rank
India
(n = 51)
Top performers
(n = 163)
Typical performers
(n = 2,496)
Trailing performers
(n = 188)
1 Digitalization/Digital marketing 29% Digitalization/Digital marketing 21% BI/Analytics 19% Cyber/Information security 16%
2 BI/Analytics 25% BI/Analytics 20% Cloud services/solution 13% Enterprise resource planning 15%
3
Artificial intelligence/machine
learning
14% Cloud services/solution 15% Digitalization/Digital marketing 12% BI/Analytics 15%
4
Mobility and
mobility applications
12%
Artificial intelligence/machine
learning
12% Cyber/Information security 11% Cloud services/solution 9%
5 Internet of things 12%
Mobility and
mobility applications
9% Enterprise resource planning 10%
Infrastructure and
data center
9%
6 Cloud services/solution 10% Cyber/Information security 8% Infrastructure and data center 8%
Customer relationship
management
6%
7
Customer relationship
management
10% Internet of things 7%
Customer relationship
management
6%
Digitalization/Digital
marketing
5%
8 Data management 10% Infrastructure and data center 6%
Mobility and mobility
applications
6% Data management 5%
9 Cyber/Information security 8% System/Process automation 6%
Networking, voice and data
communications
5% System/Process automation 4%
10 Enterprise resource planning 6%
Networking, voice and
data communications
5%
E-Commerce/Website/Client-
facing
5%
Mobility and mobility
applications
3%
Percentage of Respondents

6. 5 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
Cloud Market Dynamics
 Globally, almost 70% of all
organizations are now using cloud
 Public cloud is now the preferred model
 Multicloud environments are growing
 Adoption of private cloud persists but
for traditional use cases
 Cloud growth comes from new
applications and cloud migrations
CAGR: 18% vs. 28%

7. 6 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
Global: Cloud Trends and Adoption Rates
 IaaS is the fastest growing cloud
market segment
 New cloud spending on IaaS will surpass
new spending on SaaS in 2020
 Cloud market growth is driven by large,
high-growth segments:
– CRM — Largest SaaS segment, high growth
– Office suites — Fastest growing
SaaS segment
– ERP — Large, strategic and
increasing growth
– IaaS — Increasingly strategic
and foundational
– PaaS — The foundation of cloud-native apps
Billions of Dollars
Public Cloud Services, Worldwide, 1Q18
Billions of Dollars
Incremental Spending on Cloud Services
Source: "Forecast: Public Cloud Services, Worldwide, 2016-2022, 1Q18 Update" (G00343436)
125
152
187
221
260
302
344
2016 2017 2018 2019 2020 2021 2022
BPaaS SaaS Management & Security PaaS IaaS
$21
$27
$35 $34
$39
$42 $43
2016 2017 2018 2019 2020 2021 2022

8. 7 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
India: Cloud Trends and Market Outlook
496 694 932 1,179 1,469 1,790 2,155
104 143 191 243 303 372 444
464 693 1,008 1,364 1,775 2,288 2,931
78 102 129 155 181 212 247
116 157 201 249 299 358 416
2016 2017 2018 2019 2020 2021 2022
SaaS PaaS IaaS BPaaS Management and Security Services
 2018: $2.5 billion spend on public cloud
 SaaS and IaaS are the two biggest contributors
 2022: $6.2 billion (2017 to 2022 CAGR = 28%)
 IaaS become the biggest contributor with
34% CAGR
 Cloud market is driven by high-growth segments
 CRM and office suites are two big enablers of SaaS
growth
 IaaS becoming foundational with increased focus
on enabling digital solutions
 PaaS is driven by app infra., middleware
and DBMSSource: "Forecast: Public Cloud Services, Worldwide, 2016-2022, 1Q18 Update" (G00343436)
Million of Dollars

9. 8 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
18%
29%
Cloud Non-Cloud
Cloud Growth Results in Cloud Shift
 Cloud shift comes from:
– New applications
– Migration of old applications
– Application extension
 Cloud-first strategies dominate
 Cloud-first drives tactical and
strategic behaviors
2017
2022
IT Spending
Source: Gartner Forecasts, 1Q18 Updates

10. 9 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
Key Issues
1. What are the key cloud market dynamics — Today and over the next
five years?
2. How is enterprise cloud usage changing?
3. What are the key opportunities for partners to plan for to capture
opportunities today and in the future?

11. 10 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
Why Enterprises Consider a Cloud Migration
Poor
Good
Better
Best

12. 11 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
Waves of Cloud Adoption
Production
Hybrid
Multicloud
Lift-n-Shift
Cloud-Native (PaaS)
Dev/Test
Experimental
Backup/Recovery
Storage
Cloud-Enhanced
Next-Gen. Arch.
Cloud-Native (Serverless)
Pure Cloud
Wave 1 Wave 2 Wave 3

13. 12 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
First Wave of Adoption
 Manufacturing
 SMB
 Healthcare
 Education
 Smaller E-Commerce Players
 IT/ITES
Second Wave of Adoption
 Banks, Financial Services
and Insurance:
– Peripheral Workloads Only
– Private Sector Is Leading
the Adoption
– Regularly Framework Is Still
a Challenge
 Government:
– Digital India Initiative
– Smart Cities
Public Cloud Gaining Traction With Indian Banks
and Governments

14. 13 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
Cloud Inquiry Shift Shows Maturing of Cloud Usage
Cloud Strategy Organization
Cloud Fundamentals
Vendor Landscape
Cost Optimization
Security Security
Operations
Governance
Public vs. Private
Source: Gartner Inquiry Analytics, 2016 to 2018

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Cloud Usage Is Growing in Complexity
Cloud in Production
Increased Complexity Management
 Integration
 Architecture
 Security
 Compliance
 Data management
 Skills
 Organization
 Process
 Etc.

16. 15 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
Service Demand Increases With Rising Complexity
Production
Hybrid
Multicloud
Lift-n-Shift
Cloud-Native (PaaS)
Dev/Test
Experimental
Backup/Recovery
Storage
Cloud-Enhanced
Next-Gen. Arch.
Cloud-Native (Serverless)
Pure Cloud
Wave 1 Wave 2 Wave 3
Consulting Implementation Managed Services

17. 16 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
Key Issues
1. What are the key cloud market dynamics — Today and over the next
five years?
2. How is enterprise cloud usage changing?
3. What are the key opportunities for partners to plan for to capture
opportunities today and in the future?

18. 17 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
The Greatest Opportunities Will Be Found in
Cloud-Related Ecosystems
For every $1 spent on cloud, $x will be spent on supplemental services.
Today 2027
$ $ $ $ $ $ $

19. 18 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
Wave 2 Adoption Drives Cloud-Related IT Services
Cloud Adoption Continuum
Cloud
Consulting
Cloud
Design
Cloud
Readiness
Assessment
Cloud
Implementation
Cloud
Migration
Cloud
Development
Cloud Managed
Services
Cloud
Brokerage
Services
Cloud
Support
Design Services
Build Services
Run Services

20. 19 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
Inquiry Statistics Show a Rise in Cloud-Related IT Services
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
2016 2017 2018
Managed Services Consulting Migration Development Implementation Support

21. 20 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
Gartner's Forecast for Cloud-Related IT Services
Deployment
9%
6%
85%
Migration
Development
Source: "Forecast: Public Cloud Services, Worldwide, 2016-2022, 1Q18 Update" (G00343436)
12 16 20 24 28 31 34
41
57
78
99
122
140
150
19
23
29
36
43
50
59
72
95
127
159
192
222
242
2016 2017 2018 2019 2020 2021 2022
Managed Services
Implementation
Consulting

22. 21 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
Market Growth and Opportunity — Cloud Services
Cloud Implementation
Services
Cloud Migration
Services
Cloud Managed
Services
Cloud Consulting
Services
BPaaS
SaaS
PaaS
IaaS
Cloud Development
Services
-20%
-10%
0%
10%
20%
30%
40%
0% 5% 10% 15% 20% 25% 30% 35%
Profitability(%)
CAGR (2017-2022)

23. 22 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
 Align cloud and cloud-related services with the second wave of cloud
adoption. Focus on:
– Enterprise use of cloud
– Incorporation of legacy workloads and processes
 Engage clients with cloud implementation services including migration,
development, optimization and governance
 Invest in building an ecosystem
 Develop competencies in cloud-managed services. Focus on second-
wave use cases and technologies
Recommendations

24. 23 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.
For information, please contact your Gartner representative.
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 Market Opportunity Map: IT Services, Worldwide
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 Market Share: Public Cloud Services, Worldwide, 2016
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 Market Share Analysis: Public Cloud Services, Worldwide, 2016
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 Predicts 2018: The Cloud Platform Becomes the Expedited Path to Value
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