The cloud computing market in India is expected to grow at a compounded annual growth rate of 40 per cent by 2014, IT research firm IDC on Thursday said.

In 2009, the market was estimated at $66.7 million, according to IDC's report 'India's Cloud Computing Market'.

In the backdrop of the global economic slowdown, cloud computing has gained wide interest. The most attractive feature of this new technology is the prospect of converting large, upfront capital investments in IT infrastructure into smaller, manageable 'pay-per-use' annuity payments,” said Kamal Vohra,Lead Analyst , IDC India (Software and Services Research).

The study mapped the current adoption levels and preferences of Indian enterprises based on interviews with nearly 700 medium and large enterprises.

A significant segment of the market is aware of the concept, but do not really understand what it actually means or how it can benefit them, said Indranil Dutta, Lead Analyst, IDC India Lead Analyst (User Research).

As the market matures and more industry vertical specific applications become available, we expect more and more Indian enterprises to see the benefit of adopting cloud computing, he said.