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Future of Cloud market in BRICSS countries is robust, with growth rates well over 25% for the next 5 years: Zinnov

Top Quote Public Cloud Spending in BRICSS Nations for 2010E stands at USD $688 Million, BRICSS nations contributed 9 percent towards the total of US$ 1.51 Trillion of global IT spend worldwide for 2010E. End Quote
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  • San Francisco, CA (1888PressRelease) March 08, 2011 - Zinnov LLC, a leading management consulting firm, today announced the launch of its most much awaited study on the emerging markets for cloud computing titled, "Cloud Computing Landscape in Key Emerging Markets". The study was released at the Cloud Connect Event in Santa Clara, CA.

    The released study said that the Global IT spending is springing back after a decline last year with a strong push from BRICSS (Brazil, Russia, India, China, South Korea and South Africa) markets. Emerging markets such as Brazil, Russia, India, China, South Africa & South Korea, have shown tremendous growth in the IT investments over the last 12 months. It also added that BRICSS countries have been growing faster compared to others for the last few years primarily owing to faster growth of user industries in these markets.

    Laying specifics on the cloud opportunity from these emerging geographies, the released study read that the cloud market in BRICSS nations is slowly starting to come out of the nascent stages. Public Cloud Spending in BRICSS Nations for 2010E was USD $688 Million. It additionally read that the BRICSS cloud ecosystem plays host to a lot of global companies across the cloud computing stack that are increasingly focusing on these markets.
    Country Wise Share of Public Cloud Spending in 2010

    Brazil 13%
    Russia 4%
    India 16%
    China 36%
    South Korea 29%
    South Africa 3%

    While BFSI, Telecom & Government are the priority verticals in BRICSS, other verticals are also fast catching up. The future of cloud market in BRICSS countries is very strong with growth rates well over 25% for the next 5 years, the report brought to light. The growth of Public Cloud Spending in BRICSS nations to reach USD $ 3480 by 2015E from USD $ 688 in 2010E; a growth by 38.3% CAGR.

    Stating facts, it also highlighted that BRICSS nations contributed 9 percent towards the total of US$ 1.51 Trillion of global IT spend worldwide for 2010E. Taking a step further, it brought to light that when comparing the BRICSS nations amongst themselves, China indeed seems to have invested the maximum of US $ 54 Billion in 2010E, whereas India and Brazil stand at US $ 21.8 Billion and US$ 21.3 Billion respectively.

    Talking about the emerging markets, Mr. Pari Natarajan, Chief Executive Officer, Zinnov LLC said, "Characteristics of the BRICSS nations are unique and mandate an altogether different approach. Key drivers contributing to the growth of cloud computing in the BRICSS markets would undoubtedly include aspects like increasing IT spending, large base of SMBs, improving ICT ecosystem, favorable government policies & partnerships".

    "While IT budgets are increasing at a much faster pace, storage demand is also growing at 20-30% whereas bandwidth demand and rising at a pace of 30-50% in BRICSS nations; clearly mandating need for higher cost control from the IT departments within the enterprises and for which - Cloud is the Way Forward", Pari added.

    Highlighting the growing cloud opportunity from emerging geographies, Zinnov's study also read that the current cloud budget of enterprises in BRICSS countries is less than 50% of the budget of developed nations such as US & Western European countries. More than 50% of enterprises/ SMBs in India & China are looking to increase the IT investments over the next year.

    Last but not the least; the report said that the BRICSS ICT ecosystem is continuously improving on multiple fronts, which is enabling increased adoption of cloud services. Governments in BRICSS are aggressively promoting cloud computing through multiple policies and partnerships. In a market with close to 3 billion population, partnerships - both strategic and operational, are extremely critical.

    About Zinnov LLC
    Founded in 2002, Zinnov - meaning Zeal in Innovation - is a leading management consulting company providing advisory services in the area of Global Sourcing, Emerging Markets Expansion and Human Capital Optimization to Fortune 1000 and reputed SMB companies. Zinnov works collectively with clients to tackle prevailing organizational challenges by analyzing the changing dynamics, improving performance, and building institutional capability. The services delivered to its clients through advanced reasoning and analytical techniques, provides solutions that help in integrating organizational vision, business definition and processes.

    About Cloud Connect
    Cloud Connect, produced by UBM TechWeb, is the defining event of the cloud computing industry. As both a conference and an exhibition, Cloud Connect's goal is to chart the course of cloud computing's development by bringing together enterprise IT professionals, developers, infrastructure providers and cloud computing innovators. UBM TechWeb has produced cloud events that define and frame cloud computing discussions since June 2008, including Cloud Summit Executive and Enterprise Cloud Summit at Interop. Cloud Connect is a one-of-a-kind event that encompasses the entire cloud computing ecosystem featuring a Launch Pad program, IT & Developer workshops and a full conference program. Cloud Connect will take place March 7-10, 2011 at the Santa Clara Convention Center in Santa Clara, CA. For more information visit:www.cloudconnectevent.com.

    For further information, please contact

    Priyanka Rana
    pr ( @ ) zinnov dot com
    Ph: 1 408 716 8432
    http://www.zinnov.com

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