Cloud computing is the engine powering the Artificial Intelligence (AI) revolution and several other emerging technologies. While current demand and expected market growth have enabled the entry of new players, the market remains highly concentrated, with a few large cloud service providers who enjoy first-mover advantage and leverage certain common characteristics of digital markets such as economies of scale, network effects and conglomerate effects. This report examines these economic characteristics in the context of cloud computing and provides a comprehensive analysis of the competitive landscape of the market in India and worldwide. A key focus of the report is on the competition concerns that have been highlighted by competition authorities across jurisdictions, such as egress fees, committed spending discounts, tying and bundling, limited interoperability, and application portability. This report undertakes a discussion of these technical and financial market barriers within the Indian context through secondary research and stakeholder consultations. It highlights the ways in which the Indian market follows global trends. Finally, the report explores possible options for enhancing competition.
