Cloud service providers anticipate clientele growth as DPDP deadline draws

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Deadline for the enforcement of the Digital Personal Data Protection Act is set to kick off in May 2027, with the first phase around consent management just around the corner

By Vallari Sanzgiri

Updated - November 05, 2026 at 09:23 PM. | Mumbai

Many cloud providers anticipate companies to move away from infrastructure models that depend on foreign-controlled platforms

Cloud service providers are optimistic of an influx of clientele as India’s data protection regulation deadline draws closer and demand for sovereign cloud goes up.

Deadline for the enforcement of the Digital Personal Data Protection Act is set to kick off in May 2027, with the first phase around consent management just around the corner in the second week of November. However, with many regulatory gaps yet to be addressed throughout the process, Indian enterprises need to ensure the right governance, technology and accountability measures in place to prevent violations that can potentially go upto ₹250 crore, as per Vaibhav Koul, Managing Director, Protiviti Member Firm for India.

Armed with this fact, many cloud providers anticipate companies to move away from infrastructure models that depend on foreign-controlled cloud platforms, towards companies with Indian-controlled sovereign cloud platforms.

In its latest earnings call, ESDS Software Solutions predicted a surge in cloud demand. “We are very hopeful that as soon as DPDP kicks in next year, there will be a kind of a chaotic situation where people may want to exit the foreign cloud platform and come to ESDS. That would create a demand for us which we’ve been anticipating. We are preparing to grab that opportunity,” said Piyush Somani, Managing Director and Co-Founder of ESDS.

Compliance impact

Similarly, Sunil Gupta, Managing Director and CEO at Yotta Data Services too looked forward to the compliance impact that will go beyond customer consent to exercising greater control over personal data collection, storage, processing, protection, deletion, including involved third-party service providers.

“We expect the greatest impact in sectors handling large volumes of personal data, particularly banking, financial services, insurance, healthcare, government, e-commerce, telecom and large consumer-facing digital platforms. We believe the larger impact will be an acceleration in enterprise spending on secure cloud infrastructure, data protection, cybersecurity, backup, disaster recovery and managed services,” said Gupta.

He pointed out that while the data protection framework does not ban foreign cloud providers, it increases organisational accountability for protecting personal data. It also stresses an important distinction between data residency and data sovereignty. Simply storing data in an Indian data centre does not necessarily mean that the underlying cloud infrastructure, administrative access, encryption keys or operational control are entirely within Indian jurisdiction, said Gupta.

Operational control

“We do not necessarily expect enterprises to move their entire IT infrastructure away from global hyperscalers. Instead, we foresee an increasing adoption of hybrid and multi-cloud strategies, where organisations selectively place sensitive personal data, regulated workloads, critical applications and enterprise AI systems on infrastructure offering stronger sovereignty, security and operational control,” he said.

Meanwhile, Chandrasekhar Garimella, Director Compliance and CISO, CtrlS Datacenters, said the company is well-positioned to support our clients’ data protection needs.

“We support cloud adoption and recommend a risk-based approach to data hosting, with sensitive personal data stored in India where appropriate and other workloads hosted on overseas cloud platforms, subject to applicable legal, regulatory and security requirements,” said Garimella.

For now, cybersecurity solutions experts say DPDP readiness remains uneven. Most enterprises have started on notices and consent banners but incomplete data inventory, unreviewed vendor contracts are larger issues, said Malcolm Gomes, Chief Operating Officer at IDfy

Published on November 5, 2026

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