By Onkar Sharma

Cloud adoption has been significantly higher in India in the post-pandemic world. Organizations – big and small – had no choice but to select one of the top three American cloud hyperscalers – Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform (GCP). The pandemic was all around and workers had to be shifted to remote environments in a hurry. According to a NASSCOM report, India’s cloud market has grown at a 44% CAGR, which is faster than the global market. According to IDC, the Indian public cloud services market will reach $17.8 billion by 2027, growing at a CAGR of 22.9% from 2022–2027. Cloud adoption is the process of moving data, applications, or other business components from an on-premises environment to the cloud. The cloud is a network of remote servers that are accessed over the internet and used to store, manage, and process data.

However, the latest fiasco between Bhavish Aggarwal, CEO of Ola and Microsoft, puts the spotlight on the key question of why India doesn’t have an alternative to the top three American cloud providers. While Ola has decided to move to its own company Krutrim AI, the moment of this movement comes as an important brainer for those investors who want to put in their money behind building hyperscaler platforms. While Ola’s shift will cause a big dent in Microsoft in monetary terms, it is a symbolic move, a loud message that Indian organizations can get their alternatives at a faster pace.

While it is too early to say that Krutrim will emerge as India’s answer to the global hyperscalers, this is certainly an opportunity for local tech players to start exploring this arena quite seriously. From startups disrupting industries to a growing base of digital users, the country is on a fast track to further cloud adoption. This is going to be a launch pad for the global entry and grabbing customer in their local spaces. However, the dominance of international cloud service providers (CSPs) like AWS, Azure, and GCP might look formidable. But the fact is many local organizations are looking at good local options for concerns about data sovereignty, pricing models, and fostering domestic innovation.

This begs the question: Why should India explore a credible alternative in the cloud computing space?

Data Sovereignty and Security: Storing sensitive data on foreign servers can be a point of contention. An Indian cloud platform would provide greater control over data residency and compliance with local regulations. This is especially crucial for sectors like finance, healthcare, and government, where stringent data privacy laws exist.

Cost and Flexibility: While the current giants offer a vast array of services, their pricing structures might not always cater to the specific needs of Indian businesses, particularly startups and small and medium enterprises (SMEs). A homegrown platform could offer more competitive pricing and flexible solutions tailored to the Indian market.

Boosting Innovation and Talent: A domestic cloud provider would incentivize the development of indigenous cloud technologies and solutions. This fosters a culture of innovation and creates a pool of highly skilled cloud professionals within the country. Additionally, it would empower Indian startups to develop cloud-based applications and services without relying solely on foreign players.

Geopolitical Considerations: In a world with growing geopolitical tensions, dependence on foreign cloud infrastructure can pose security risks. An Indian cloud platform would offer greater control over data security and reduce reliance on external forces.

Building a robust Indian cloud alternative requires a collaborative effort. The government can play a vital role by providing incentives for domestic cloud providers, promoting research and development, and ensuring a level playing field. Additionally, collaboration between established Indian tech companies and startups can accelerate the development of a secure, reliable and scalable cloud ecosystem.

The Indian cloud market holds immense potential. By fostering a domestic alternative, India can ensure data security, promote innovation, and empower its rapidly growing digital economy. As the country continues its digital transformation journey, a homegrown cloud solution can be the key to unlocking its true potential in the global tech landscape.