In a rapidly digitizing nation like India, Amazon Web Services (AWS) has established a strong footing as an ecosystem enabler. RTI International (RTI) conducted an in-depth survey of senior executives across 2,209 firms that utilize cloud technology in India, 50% of whom were AWS customers. According to the survey, over 90% of AWS customers reported significant cost savings. 92% of surveyed firms that use AWS said they saved money by using a public cloud service as opposed to on-premises data centers/own IT resources. Close to 55% of AWS customers experienced a shorter time to market for new products and services. In addition, there was a faster reaction to changing market conditions (54%), affordable experimentation (53%), and the ability to expand geographically (53%).
AWS helps customers save money and increase earnings
Cloud services are now an indispensable part of business evolution and digital transformation-led economic progress in India. Businesses are now progressively adopting cloud solutions as a strategic business imperative as opposed to a tactical move. Moreover, in today’s volatile economic conditions where cost optimization is vital, AWS offers significant cost savings.
By democratizing access to cloud services across industries, organizations with varying business maturity, and size; AWS has helped customers in India realize substantial cost savings.
Business enablement across public sector organisations, startups, as well as small, medium, and larger enterprises has been significant, with an estimated turnover of about INR 82,500 crores (close to $11 billion) generated using AWS cloud services. AWS’ return-on-investment was estimated by customers to be 3.5 times. This means that for every INR 100 spent on AWS Cloud, customers received an estimated profit of nearly INR 350.
Empowering startups, and small and medium sized businesses to scale
AWS has positioned itself as an ally to Indian startups. As part of the survey, all startup respondents and entrepreneurs found the technical assistance offered by AWS to have helped advance their business aspirations. These respondents were twice as likely than other types of firms to believe that their business could not have launched or scaled without AWS. About 70% of small companies said that their use of AWS Cloud helped them achieve their annual turnover goals. Similarly, 52% of micro businesses (up to INR 5 crore or nearly US$0.6 million annual turnover) acknowledged that their business model would not be feasible without AWS Cloud. AWS’ focus on this segment is valuable in enhancing inclusiveness – propelling new and small-scale businesses to effectively join and scale up in the mainstream economy.
Creating competitive advantage for enterprises
At the other end of the spectrum, about 70% of large enterprise survey respondents reported being able to react to changing market conditions faster through AWS Cloud utilization. In addition, 53% of large enterprises attributed their increased overall ability to compete against other companies to their use of AWS services.
Leading established corporates and startups in the industry such as Tata Motors, Axis Bank, Paytm, Dream11, 1MG etc. use AWS Cloud.
Across the board, AWS’ offerings were found to accelerate the pace of innovation, speed to market, geographic expansion, and a faster and leaner response to evolving market dynamics. Not only does this allow for greater experimentation but also a breakaway from traditional business modalities that may weaken the competitiveness quotient, especially of younger firms, and hamper their growth.
For a new ecosystem to thrive, several actors need to work in unison in a favourable policy environment that enables innovation and supports universal technology access. A risk-based and technology agnostic approach helps balance citizen safety and flexibility for innovators. Building digital trust and bridging the digital divide is crucial for the success of any country’s digital economy. AWS is also actively investing in the workforce of the future, focusing on developing an upskilled talent pipeline.
Cloud services will undoubtedly play a pivotal role in India’s economic growth paradigm. With an unrivaled talent pool and fast improving technology access and adoption, India is poised to realize its latent potential as a technology powerhouse of the future and AWS’ commitment to the country will likely bolster this growth trajectory in a meaningful manner.
RTI International, a global leader in research, was commissioned to conduct a deep dive study into the role of AWS in India’s burgeoning cloud services sector, through an in-depth survey of the users of AWS and other cloud services. This was further integrated with India’s country-level economic data to estimate the impact on both economic outputs and livelihood. To do so, RTI developed a robust economic model of the Indian economy.
The model leverages data tables created by the Asian Development Bank that describe the flow of goods and services between Indian industries. It also incorporates employment data from the International Labour Organisation’s Periodic Labour Force Survey and labour income data published by the Reserve Bank of India. To arrive at a holistic estimate, total economic impact was calculated at three levels – direct, indirect, and induced.
To estimate the value and impact of cloud services, RTI surveyed 2,209 senior executives across India about how cloud services confer business and technological advantages. RTI also asked how these advantages may result in cost savings, increased turnover, and other key business outcomes. RTI analysed survey data using its bespoke economic model to establish AWS’ industry and economy-level impacts.