Can IaaS providers cope with Increasing Demand?


There is an upward projection in the IaaS implementation by enterprises due to IOT and mobile computing in today’s digital era. Can IaaS providers meet up with the soaring demand?

Gartner forecasts that the entire IaaS market’s size, which was $16.2 billion in 2015,  will reach $22.4 billion this year – a 38.4 percent year-over-year growth rate.

By 2018, 50% of the consumers will interact with services based on cognitive computing on a day-to-day basis, according to research firm International Data Corp.

That just marks the beginning of what is more to come. IT industry in India has gained a huge momentum owing to the digitization initiatives by the Government.

Adopting Infrastructure as a Service Can be a Good Deal

It is a long discussed topic that enterprises want to free themselves by offloading the cost and maintenance of IT infrastructure to the cloud. Owning and maintaining a datacenter is becoming complex task and expenditure incurred in operating is also very high.

IT professionals have come to the conclusion that much of the time is wasted in monitoring and maintaining IT infrastructure.

At the physical level, maintenance of  servers and storage arrays, power resources with backup supplies, chalking out a relevant DRP and enabling your business continuity is a challenge. This requires skilled labour with domain expertise.

All these factors have forced enterprises to evaluate on which IT should remain in the organization and which can be more efficiently moved to the cloud service providers.

One of the cloud deployment models, Infrastructure as a Service, is gaining huge popularity in today’s digital world due to its cost-effective advantages. Some organizations have readily adopted while a majority of them plan to implement it in the near future.


Mobile Computing and IaaS

With the advent of mobile computing, the world around us has changed considerably. Meetings, seminars, data-exchange and other services are well connected electronically due to mobile computing. Mitigating the security concerns, secured connections and authorisations levels enable the smooth flow of business activities. It requires the data to be stored and managed on the servers.

Internet of Things to Spike Demand

In the era of IOT, the customers look for smart homes, cars and smart businesses. By 2020, analysts predict the Internet of Things (IoT) will connect at least 20 billion devices, all generating tonnes of gigabytes data to be managed and analyzed. This explosion of data will push the need of massive network infrastructure.  Due to this, time has come where the demand for smart cloud is cropping up. Many IoT products are being created ,technologically developed and enhanced; adding to the Cloud IaaS demand graph, vertically.

Gushing effect owing to Start-ups in India

On the other hand, the budding startups are in a race to provide the best of services to their customers.  These companies do not have the capital and set up of required resources to their devices demand. IaaS serves as the best option for them.


The above figure shows how enterprises can leverage cloud infrastructure as a service to their maximum advantage.

Take an example of business enterprise developing a new software application. The most viable option will be to test the application through a cloud infrastructure provider. This saves on cost considerably. After testing and development, it can be successfully moved to in-house IT or asper requirements of the organization. Post deployment, it is bound to generate huge amounts of data for which again IaaS kind of services is required.

IAAS in India

The Indian datacenter infrastructure market will total $2 billion in 2016, a 5.2 percent increase from 2015, according to Gartner, Inc. The highest growth is expected to come from cloud infrastructure services(infrastructure as a service [IaaS]) from the SMB segments. Digital India campaign by the Government, launched to empower the country digitally in the field of technology, is a key driver for infrastructure service demand in India. Currently, the Indian market lacks mature ecosystem to support cloud IaaS services. This scenario is bound to escalate the demand for cloud infrastructure service in India.

Can IaaS providers handle it?

Thanks to the increased use of mobile computing and  development in IOT, there is a surge in demand for Cloud infrastructure as a service. It will require ‘out of box thinking’ for the datacenter managers to cope with the spike.

IDC expects regional public cloud services providers in India will continue to grow over the five-year forecast period and IAAS revenue to be tripled by 2020, to 43.6 Bn USD.  If Gartner is right, IaaS will provide majority of virtual machines by 2019 along with maximum compute power.

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Naresh Puro

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