To Counter Dominance Of Microsoft, Amazon, Google, Government Planning Incentive Scheme For Cloud Startups

According to Union Minister of State for Electronics and Information Technology Rajeev Chandrasekhar, the Central government is proposing an incentive scheme to enable domestic cloud-technology enterprises and startups to compete with Microsoft Azure, Amazon Web Services, and Google Cloud.

This comes as the three global behemoths battle with single-digit yearly contract value growth, driven by a fall in cloud spending by technology businesses in important areas such as the US and Europe. Nonetheless, industry observers have noted that cloud demand has remained stable in growing markets such as India and Asian nations, owing to new-age technology companies in these regions.

"We don't like the fact that currently between Azure, Amazon, and Google, the cloud in India is dominated by these three companies,"  Chandrasekhar said in a Twitter Space on March 16.  "We would like consumers to have more choice and we would like enterprises to have more choice. there is certainly going to be an incentive scheme we are going to come up with where we encourage more domestic cloud innovators to create public clouds,"  He went on to say.

This incentive scheme would be distinct from another Rs 15,000-crore plan being developed to encourage the establishment of data centers in the country. Chandrasekhar also stated that the government will issue a tender to hire a private player to meet its cloud technology demands. According to IDC, India's whole public cloud services market is expected to reach $13 billion by 2026, growing at a CAGR of 23.1 percent between 2021-26. For the first half of 2022, the market generated $2.8 billion in revenue.

Important News and Blog Tags for Readers

Incentive scheme to enable domestic cloud-technology startups

Encourage more domestic cloud innovators

Establishment of data centers in the country

New-age technology companies

India's whole public cloud services market