The fast-paced digital transformation across industries has placed cloud computing at the core of enterprise IT strategies. While hyperscaler cloud providers continue to dominate the market with their scalable infrastructure and global reach, a shift is underway. Indian businesses are increasingly exploring alternative cloud providers, driven by the need to optimise costs, enhance data sovereignty, strengthen security, and ensure compliance with local regulations. This growing preference also stems from the realisation that hyperscaler solutions—designed with large enterprises in mind—often fall short in meeting the nuanced demands of today’s diverse infrastructure environments.
It is important to note that this changing landscape is backed by strong market signals. According to recent projections, the Indian cloud market is set to grow from USD 21.37 billion in 2025 to USD 52.22 billion by 2030, at a CAGR of 19.57%. Although hyperscalers currently account for more than 60% of the market, the pace of growth hints at an evolving demand, particularly in highly regulated sectors such as finance, healthcare, and government. These industries require specialised, cost-effective cloud solutions that can handle compliance-sensitive workloads—something hyperscaler models, often burdened by high pricing and rigid frameworks, struggle to offer.
Cloud repatriation and the rise of local control
One of the most significant developments in India’s cloud narrative is the growing trend of cloud repatriation, a strategic transition where enterprises shift workloads from public clouds back to private or hybrid environments. According to a whitepaper by Sify Technologies, this trend is not just about cutting cloud-related costs. It also reflects the need for deeper control over data security and IT architecture. Local and asset-buying cloud providers offer a level of customisation and visibility that global hyperscalers typically cannot match. This has become especially important in regulated industries where compliance demands are growing rapidly.
A famous example is the Reserve Bank of India’s proposed local cloud storage pilot. Designed to reduce dependency on global cloud vendors, the initiative aims to help financial institutions store sensitive data locally in a secure, compliant, and cost-effective manner. This move reinforces the rising need for data sovereignty in cloud strategies. For many Indian companies, particularly those under regulatory scrutiny, cloud provider selection now hinges on the ability to offer local data residency while maintaining robust due diligence standards.
The hybrid and multi-cloud advantage
Adding further momentum to this shift is the adoption of hybrid and multi-cloud strategies. Research and industry reports consistently highlight how Indian brands are leveraging multiple cloud environments to enhance flexibility, avoid vendor lock-in, and maintain operational resilience. Hybrid cloud models allow businesses to combine the scalability of public clouds with the control of private ones, tailoring deployments to suit specific workload needs.
This also opens a critical window of opportunity for alternative cloud providers. Many of these regional players are more agile and focused, offering better support for hybrid environments through clearly defined SLAs, localised edge deployments, and higher-touch customer service. Their ability to integrate more closely with client infrastructure makes them ideal for businesses seeking a more collaborative and responsive cloud partner.
Customised solutions and competitive edge
Another major factor tipping the scale in favor of alternative providers is the demand for bespoke solutions. These providers are equipped to address niche, domain-specific challenges whether it’s latency – sensitive applications, regional compliance needs, or customised integrations. They are able to do it far more effectively than hyperscalers, which typically offer standardised, one-size-fits-all services.
As the Indian cloud ecosystem matures, organisations are placing greater emphasis on adaptability, control, and value. The default choice of hyperscalers is being questioned more frequently, especially when weighed against long-term goals of innovation, resiliency, and compliance.
Conclusion: A strategic imperative
India’s cloud journey is undergoing a transformation. Businesses are no longer content with the traditional hyperscaler model, especially when it comes at the cost of flexibility, customisation, and compliance. The rise of cloud repatriation, evolving regulatory frameworks, and the growing appeal of hybrid models are reshaping how organisations define cloud success.
Alternative cloud providers are no longer just options—they are becoming strategic allies. For enterprises looking to build a future-ready, resilient IT infrastructure, thinking beyond the hyperscalers is not just smart. It’s essential.