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Why AWS Announcement Heralds Public Cloud War In India

On 28 June, when Amazon Web Services (AWS) announced the launch of its sixth Asia Pacific (APAC) Region in Mumbai, India, it did nothing short of telling its competitors firmly, especially Microsoft and IBM, that it was stepping up its no holds barred campaign to dominate the public cloud space.

It was hardly any surprise then, that Microsoft was forced to follow up with an aggressive cloud campaign the very next day.

AWS now has a total of 35 Availability Zones across 13 geographic regions. As AWS points out, these zones comprise one or more discrete data centres, each with redundant power, networking and connectivity, housed in separate facilities.

The latest AWS announcement concurs with the outcomes of a recent extensive Global, Independent study by Greyhound Research titled, Global Cloud Adoption Index 2016.

Among other things, 95% respondents in the Asia-Pacific including Japan (APJ) region confirmed their plans to use Public Cloud in some manner between 2016 and 2017.  Separately, 70% independent software vendors (ISVs) and Start-ups in APJ stated their intent to use (or continue using) AWS because of its strong ecosystem base which lends them more opportunities for monetisation.

“We at Greyhound Research believe AWS’ move will result in three main outcomes for its existing, and potential, clients: Access To Technology and Skills; The Ecosystem Advantage and Opportunity for ISVs; and Potential Financial Benefits,” said Sanchit Vir Gogia, Chief Analyst & CEO, Greyhound Research.

Greyhound expects this Public Cloud war in India to intensify in FY17 and FY18, and add more pressure on the likes of Google, VMware, Rackspace, NTT’s Netmagic, CtrlS, NxtGen and ESDS too. Given the investment from key vendors, CIOs can expect heavy sales push coming their way.

“This push will be specifically targeted towards regulated industries like the government and Banking, Financial Services, Insurance (BFSI) verticals that have traditionally steered clear of the Public Cloud,” said Anshoo Nandwaani, Vice President & Principal Analyst, Greyhound Research.

Global vendors and regional and local vendors have already made their presence felt in the country over the past year by either announcing India Data Centres or their intent to invest increasingly. However, while Google has been actively selling its offerings locally, it’s yet to make any news on its intent to invest in India to cater to the growing Public Cloud opportunity.

Regional and local Public Cloud vendors will face the impact more intensely. Owing to their lack of scale and critical volume of customer base, regional and local Public Cloud vendors like CtrlS, NxtGen and ESDS face multiple challenges when competing with Global vendors – regional and local vendors have not been known to invest much muscle in R&D, hence are unable to offer many technology firsts.

How Can IT Decision Makers Make This Work For Their Organisations?

This report advises IT Decision Makers to look beyond the sales pitch and double-click on aspects like security, availability and compliance that may seem obvious and a given.

To know more about our findings, the three outcomes in detail, and the impact of a single vendor choice as opposed to a mutli-vendor one, read our freemium Greyhound Sprint Report titledAWS Announces New Asia Pacific Region – Here’s Why It Matters!

Separately, we have reorganised all of our content in a way that allows you to better filter and read what works best for you. To access scores of Free, Freemium and Premium Insights spread across 10 Research Themes, 14 Industry Verticals, 12 IT Decision Maker Roles and 7 Geographies, please use the Digital Transformation Insights dropdown menu above.


Note for IT Decision Makers – Join Our Exclusive Community! Greyhound Research values your opinion and invites IT Decision Makers and Business Leaders involved in IT projects to join our exclusive, invite-only community, Greyhound Golden Gate. If your project is exclusive and we have your permission, we will write a research note about you and share it with the larger community. Over and beyond, this also gives you access to some of our thought-leading research and experts. Please write to us on connect@greyhoundgroup.com and we’ll take it further from there!

Note for IT Vendors, Telecom Operators and Channel Partners – Did you see our Research Agenda? Do check out our extensive Digital Transformation research agenda that covers 10 Research Themes, 14 Industry Verticals, 12 IT Decision Maker Roles and 7 Geographies. Please write to us on connect@greyhoundgroup.com and we’ll gladly share a copy of the research agenda with you.


Wish To Use This Material? Greyhound Research is happy to provide reprint rights, official reprints in PDF  and permission to quote. To send us a note, please click here.

Copyright © 2016 Greyhound Research. All rights reserved.

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