Cloud computing is quickly becoming the new normal in the business world with the global cloud market being projected to reach $376.36 billion in 2029. In India, the market is growing at a rapid pace with Market Research Future projecting a growth rate of 17.2% between 2025 and 2034. Why all this is happening is because cloud computing is the future of technology and there is no doubt about it. But why is that the case?
For someone new to the term cloud computing, it is basically renting IT components instead of purchasing them yourself. Truth be told, IT infrastructure can be quite costly. You are talking about heavy investments in databases, hardware and software. However, companies (especially SMEs) nowadays are choosing, instead of trying to measure up with the big companies, why not pay for the exact service they need to the level they need it?
A 2024 study by Tata Tele Business Service (TTBS) and Cyber Media Research (CMR) revealed that at least 50% of SMEs were expanding their businesses by incorporating cloud solutions. For instance, there are a number of cloud computing companies in Bangalore that are helping businesses scale up with automation tools such as AWS and Azure to beat the competition. Today, retailers are competing with e-commerce players, banks with neobanks and other similar types of competition.
Cost is a big deal
As mentioned earlier, IT infrastructure can be quite costly. Many Indian companies want to grow, but do not want to risk investing in infrastructure that might end up sitting idle. With cloud services, you are able to reduce costs on a number of levels within the firm. Companies no longer need to invest in the construction of data centres or hardware in order to function. Just take up services from the cloud, and you are good to go.
Even though it might be a concerning topic to move your business projects to the cloud, entrepreneurs are considering their ROI. With most cloud services, you have access to pay-as-you-go features, which means that you are able to spend exactly what you need from the cloud. No need to incur more cost than is necessary. For example, you and your clients can pay for the exact space you need, which will ultimately lead to lower costs and higher returns.
Apart from the cloud saving companies money, there are also a number of strategies that these companies are incorporating to reduce cloud costs:
- Utilising AWS’s Spot Instances for interruption-tolerant workloads, which can cut costs by up to 90%.
- Having budget and alert tools to help manage costs effectively.
- Auto-scaling resources based on demand.
Interestingly, cloud-based ERP solutions are helping customers achieve between 30% and 50% lower total cost of ownership.
Security is a top challenge
Security is among the top reasons for companies in India turning to cloud adoption. Statistics show that 40% of SMEs in India consider security as a top factor leading to the adoption of cloud technology. Without proper security, data breaches and other security concerns can be a menace to any organisation, regardless of how big it is.
However, with cloud computing, security is heightened, which ensures proper protection of information. Modern cloud providers heavily invest in security infrastructure that often goes beyond the capabilities of many companies. For example, Microsoft alone invests over $1 billion every year in cloud security R&D. If you are using Microsoft Azure in your company, then you are offered the same level of security as in-house security.
Some of the security measures within this field include:
- Data encryption when in transit and at rest.
- Global standards compliance, e.g., SOC 2, HIPAA, ISO and GDPR.
- IAM systems for secure user controls.
Adding to this advantage is the rise of devops managed services, which integrate security directly into the development and operations pipeline. By combining automation with continuous monitoring, these services ensure that vulnerabilities are identified early, patches are deployed faster and compliance is maintained without slowing down innovation.
Scalability at its best
One of the most significant benefits of cloud is scalability. Businesses can easily scale their IT up or down, depending on the workload. This is especially beneficial if you have a workload that is constantly fluctuating, seasonal traffic and business growth.
Take an example of customer support. For many companies (at least 51% of SMEs in India), customer support is delegated to cloud services. The scalability of cloud services allows customer support to handle sudden spikes in queries without having to compromise the quality of the services. In 2024, a major SaaS platform in India, Unicommerce, during the Diwali season, witnessed a 14% growth in order volumes compared to the previous year. The GMV also rose by 18% in relation to 2023’s Diwali sales.
With such information at hand, you can easily tell that having a scalable system is more rewarding. When customer support is much needed, you scale it up and vice versa.
Microsoft have set their eyes on India
The technological aspect of India’s economy has been growing at a rapid pace, and it is emerging as a competitor to the EU, China and the US. The technical talent in the country has caused Microsoft to announce a $3 billion commitment to boost India’s AI and cloud computing world. This move is aimed at increasing the presence of Microsoft in India, even as tech companies diversify their offerings beyond the traditional Western markets.
In the same beat, Microsoft has made a partnership with SaaSBoomi, a community of B2B startups in India, to support the growth rate of India’s AI and SaaS ecosystem. The aim is to have an impact on over 10,000 entrepreneurs and 5,000 startups. Also, they want to create over 200,000 new job opportunities as well as foster regional development in more than 20 tier II cities. All this comes as India heads to a $5 trillion economy.
What’s next for India’s businesses on the cloud?
In the coming years, you can expect that most businesses will be using cloud services for their normal operations. As of 2025, at least 28% of businesses in the country are already using basic cloud services. Statistics reveal that by 2030, 90% of all businesses in India might have adopted a basic level of cloud technology.
But with the intervention of IT corporations like Microsoft, there is no chance of remaining at the basic level. The current partnerships already show that India is ready for a massive growth in the technological sector. The investments and infrastructure being laid down in matters of cloud technology will help ensure that hundreds of thousands (if not millions) of people and organisations and people benefit largely.
