For every $1 of Google Cloud products sold in India, Google partners stand to generate $6.11 in 2020 and up to $8.33 in revenue, giving them an opportunity to grow more than 3.7 fold by 2025, a study by market intelligence firm IDC said.
In a report titled, partner opportunities in a cloud world - how partners are winning in the Google cloud economy, IDC highlights the growth of Google partners’ business in India.
According to the research, on an average, Google Cloud partners are growing at 35% year-over-year, with a significant group of partners (20%) growing even faster, at more than 75% year-over-year.
The information technology (IT) market continues to see growth due to the rising demand for cloud infrastructure and cloud capabilities in areas such as data analytics, artificial intelligence, internet of things (IoT) and security.
“The global pandemic has further accelerated businesses' needs for these capabilities, seeking to quickly adapt or even to take this opportunity to speed-up their digital transformation journey,” IDC said.
The report reveals that globally, for every $1 of Google Cloud technology sold in 2020, partners will generate $5.32 through their own offerings, services, and IP; and this number is expected to reach an average of $7.54 by 2025.
“The demand for cloud technology and services is growing rapidly in India. The partner ecosystem here is looking to work with cloud providers like us to help businesses of all sizes embark on a digital transformation journey. Our goal of 100% partner attachment will create more opportunities for our partners to provide valuable services to customers and help them build for the future,” Amitabh Jacob, Head of Partners & Alliances at Google Cloud India said.
The report said that not only is Google Cloud partner revenue growing faster than Google Cloud's revenue, but the net margin opportunity of $121 billion through 2025 will also be well distributed across partner activities globally.
About 50% of Google Cloud partners are in the late stage of digital maturity and more than a third of Google Cloud partners have fully integrated digital into their strategies and businesses.
The partners, who are creating their own unique IP around Google Cloud, are seeing very strong margins associated with their products.
"Partners are seeing strong margins across multiple activities, including resale, IaaS, PaaS, and SaaS add-ons, IT services, business services, and support for hardware and networking," the report mentioned.
Google, like its other cloud peers Amazon Web Services and Microsoft Azure, has increased its India bets. In July, Google Cloud partnered with Mumbai based multi-cloud hybrid information technology solution provider Netmagic Solutions for setting up a centre of excellence.
In June Google Cloud extended its alliance with London-based accounting firm Deloitte to help enterprises in India modernise and accelerate their adoption of cloud technology.