Indian enterprises intensifying reliance on a hybrid cloud setup: report

Hybrid Cloud

Hybrid cloud deployment at a steady rate could result in cost savings of anywhere between 5% and 30% for an enterprise reveals Microsoft-Zinnov study.

“The hybrid cloud deployment at a steady rate could result in cost savings of anywhere between 5% and 30% for an enterprise (depending on the growth of virtual machines in an enterprise’s data centre and a proportion of workloads moving from private data centre to public cloud infrastructure), based on the output of its proprietary cost modeller.”

The report further reveals that with the substantial cost as well as organizational benefits, Indian enterprises are increasingly intensifying their reliance on a hybrid cloud setup.

As per the survey conducted as part of this study, over 40 percent of enterprises have planned or are planning to build a hybrid cloud infrastructure or transform their existing IT infrastructure. The primary reasons cited for adopting hybrid cloud solutions include lowering total cost of ownership (54 percent), facilitating innovation (42 percent), enhancing operational efficiencies (42 percent), and enabling companies to respond to and meet customer expectations more readily (40 percent).

Highlighting the need for hybrid cloud, Meetul Patel, General Manager, Marketing & Operations, Microsoft, said, “The hybrid model is a ‘best of all worlds’ option that allows customers to benefit from the cloud on their own terms.”

Zinnov analysed more than 50 global cloud channel partners and found that hybrid cloud deployments constituted 45-50% of their overall cloud business.

The growth of the cloud industry has been spurred by the funding and investments in cloud tech startups, which have increased exponentially. In 2016, the cloud market saw an estimated 370+ deals with the average investments growing at CAGR 15% between 2012-2016. The hybrid cloud deals accounted for 45-50% of the total cloud deals that happened from 2012 to 2016, and these primarily focused on storage, automation as well as hybrid cloud management solutions.

In addition, there has also been an increase in the cloud-specific acquisitions, growing at 35% CAGR from 2012 to 2016 with an average investment jump of 81.25%.

Rapid growth in internet adoption – fueled by government initiatives like demonetization and GST, growth of mobile data (the number of mobile developers is estimated to double from the current 300,000 by 2020), and digital transformation, led by the emergence of disruptive startups, especially in areas such as fintech, e-commerce, SaaS, are stated to be the key reasons for this development.

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