Google and Accel Partners released Friday a joint report that predicted the value of the Indian software as a service (SaaS) market will touch $50 billion by 2025.
According to the report, purpose-built global SaaS products will witness rapid adoption by small and medium businesses (SMBs). The report claims that SMBs will contribute to more than 75 percent of the public cloud revenues, driving the global SaaS industry to $132 billion in revenues by 2020, of which the SMB SaaS market is expected to be worth $76 billion.
"Cloud computing is one of the top technology investment trends of this decade with venture funding for purpose-built SaaS solution exceeding $18 billion in the last four years. Indian start-ups have an edge, as mobility is also becoming a key requirement by SMBs for SaaS," Rajan Anandan, vice president and managing director, Google Southeast Asia and India, said at a conference.
"Our start-ups are already building world class solutions for the mobile first users, this strength combined with easy access to global customer base online, will help India to become a very strong player in the global SaaS industry," Anandan said.
"We're already seeing many Indian SaaS start-ups creating world-class products successfully for global SMB market. With sizable SMB market opportunity, increasingly high quality entrepreneurs, availability of local talent, favourable unit economics and a vibrant venture capitalist (VC) community in this space we anticipate several billion dollar companies will be create from India in the next decade." said Shekhar Kirani, partner at Accel, in India.