Piyush Somani is the Managing Director and Chairman of ESDS Software Solution Ltd. He holds a bachelor’s degree in engineering (electronics) from the University of Pune. He has over 16 years of experience in the information technology sector. As the founder of our Company at the age of 26, he has been instrumental in expanding the operations of our Company in India and several international markets. He is also on the board of our Subsidiaries, ESDS Internet Services Private Limited, SPOCHUB Solutions Private Limited, ESDS Cloud FZ LLC and ESDS Global Software Solution, Inc.
The last two years have brought about a significant change in how individuals or organizations do their daily business. The onset of the pandemic is believed to have forced the organizations across the industries to enhance their focus more on operational agility. To remain competitive in their respective business areas, it has become important for businesses to adopt Digital Transformation. CIOs and business heads may also require to focus on talent retention and improved relationships with their stakeholders.
This increased digitization has given a significant push toward the adoption of cloud-based services that is estimated to increase the global investment in Data-Centers to over US$ 200. The Indian industry is expected to gain a significant share in the global market, with the country’s investment expected to hit ~US$ 5 billion annually by 2025. The accounting of revenue expected to be gained from digitally underserved MSMEs of India could further provide a major boost to the IT sector. Even small firms in the unorganized sector are realizing the need to have an all-around run time for mission-critical applications, digital customer acquisition, and servicing tools. Backed on key technologies of artificial intelligence, machine learning, big data, and analytics, IoT, the IT/ITes sector in India is expected to benefit immensely from the increased adoption across end-user firms of all types and sizes.
The Cloud industry in India is witnessing a surge in adoption by various industry verticals such as the Government sector, manufacturing industry, IT Industry, and others. This ESDS operates across Managed Cloud Services, Cloud IaaS, SaaS, and Security Services. IoT services, big data, and cloud computing are expected to integrate where cloud computing is expected to play the role of a common platform for IoT. The following illustration demonstrates the cloud services market segmentation in India by industry (IT/ITes, Manufacturing, Government, BFSI, and others) based on revenue (%) – Fiscal 2020
Source: Ken Research Analysis
The Key Differentiators of Cloud Technology
Scalability – Data center operators struggle to scale sufficient infrastructure to facilitate more demanding IT requirements (such as increasing compute, storage, and network needs). Cloud services have proved to be highly scalable, as an organization can increase or decrease resources to support business growth by saving money during slower periods.
Cost-Effective– Cloud services save organizations from spending huge costs on storage services. The cloud service provider handles the server maintenance, power and cooling cost, software licensing, and upgrade expenses for their clients.
Flexibility – Cloud technology is a subscription model, which gives its users the flexibility to scale up or down the resources which leads the CSPs to bill their end customers on a pay-per-use basis.
The Trends Responsible for the potent Disruption
Increasing adoption of big data, analytics, artificial intelligence, and the internet of things (IoT)
The growth of the cloud services market is driven by the increasing adoption of big data, artificial intelligence, and IoT. IoT connects multiple devices or appliances that need to be connected to the internet for reasons including automation and real-time control of the device Artificial intelligence is being embedded into IT infrastructure to help streamline workloads and automate repetitive tasks. Companies are using cloud infrastructure to collect, store, process, and analyze the huge bulk of data required for artificial intelligence tools and applications. The surging adoption of big data in India is also leading to the growth of the cloud services market as cloud infrastructure allows for the real-time processing of big data.
The SaaS Industry
The global SaaS market is expected to grow multifold in the next few years owing to increased awareness among enterprises for its usage, advancement in technologies, and the corresponding introduction of new products and offering (vertically and horizontally), supply-side enablers providing consumption-based models, etc. In 2018, Canada ranked first with 8.6% spent on SaaS as a percentage of the software and services industry, followed by the USA and Russia at 6.6%. It was estimated that around 4.0% spend on SaaS was incurred as a percentage of the Software and Services Industry in India. However, the Indian SaaS industry is expected to occupy a 7-9% share in the global SaaS industry by 2022, fueled by India’s competitive edges compared to the world in terms of low-cost structure, the abundance of engineering talent, increasing acceptance of Indian products across the globe and effective customer service.
The following illustration demonstrates the market size of the global SaaS industry in USD billion from 2020 (estimated) to 2025 (projected)
Growth Drivers and Trends in the Global SaaS Industry-2021
- Integration through APIs
- Increase In Micro SaaS Companies
- The rise in Consumption-Based Models
- The emergence of the SaaS marketplace
- Data-Driven Decision Making Culture
- Promotion of SaaS Adoption by Governments Worldwide
Deployment of Futuristic Technologies in SaaS
Concerning the potential and the opportunity in the SaaS, Market ESDS has garnered an elaborated SaaS portfolio placed on our innovative SaaS Marketplace SpocHub. SPOCHub is a platform to assist organizations in their digital transformation journey by enabling them to choose the right fit products & solutions. It provides both in-house developed and third-party applications, hosted on the ESDS cloud platform, to end-users, over the internet, on a monthly or quarterly subscription model, which allows clients to develop, run and manage applications and services. This way, Spochub enables ESDS and its software vendors to offer solutions with custom packages to enterprise customers. It is a Digital Transformation Marketplace with a Curated Catalogue of Innovative Industry-Specific solutions and is now marching toward the XaaS (Everything as a service) DX platform. SPOCHUB fills this gap across industries, empowering ISVs with great solutions to partner with ESDS and increase their market reach, backed by the commitment of exuberant support from ESDS to the customers.
Concluding Words
The adoption of cloud computing is now observed across all industries. With its numerous benefits & capabilities compared to on-premise solutions, Cloud has transformed & facilitated product research, design, and development. Consequently, increased innovation and lower development costs have resulted in increased market distribution. A cloud-based solution improves the overall performance of organizations regardless of their domain, making them more efficient, more productive, and more streamlined. Today, Cloud Computing is the most logical solution for storing data, performing analytics, and generating intelligence. Hence, it proves to be the better option for the technological and overall development of industries and easing of everyday lives of individuals and industries alike.