# Software and IT services: Follow one offering through the chain Operating systems, business applications and outsourced IT services, a core Indian export Source page: https://www.materialinsights.org/industries/software_it/story/ #### Follow one offering through the chain **5** Example story · 7 steps · India ### A Zoho subscription built and hosted in India Follow India's best-known software product from its servers to the engineers who write it. 1 / 7 · Compute and cloud platforms #### Opting out of the US clouds **63%**big three's cloud share, Q2 2026 Most software firms rent servers from Amazon, Microsoft or Google, which together took about 63% of cloud infrastructure revenue in the second quarter of 2026 (calculated from 28%, 20% and 15%). Zoho, the Chennai-born software maker, chose otherwise: its founder says it hosts no products on AWS, Azure or Google Cloud, using outside clouds only to speed up regional traffic.^[1](https://www.srgresearch.com/articles/q2-cloud-market-passes-143-billion-highest-growth-rate-in-eight-years)^,^[2](https://www.storyboard18.com/brand-marketing/zoho-founder-clarifies-data-hosting-and-product-development-amid-misconceptions-says-made-in-india-made-for-the-world-81848.htm) **Constraint** Owning servers avoids rental lock-in, but the chips and servers are imported and must be bought ahead of demand. [Si Silicon](https://www.materialinsights.org/commodities/silicon/)[Cu Copper](https://www.materialinsights.org/commodities/copper/)[H₂O Water](https://www.materialinsights.org/commodities/water/)[DC Data centres](https://www.materialinsights.org/energy/e_data_centres/)[Data centres and cloud](https://www.materialinsights.org/industries/data_centres/)[Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/)[Telecommunications](https://www.materialinsights.org/industries/telecom/) 2 / 7 · Shared building blocks #### Linux and PostgreSQL underneath **18+**Zoho data centres worldwide, 2025 Inside its own data centres, more than 18 worldwide by its count, with Indian customers' data kept in Mumbai, Delhi and Chennai, Zoho runs on company-owned hardware and open-source foundations such as the Linux operating system and the PostgreSQL database, topped with frameworks it writes itself. Open code spares it licence fees to any single platform vendor.^[2](https://www.storyboard18.com/brand-marketing/zoho-founder-clarifies-data-hosting-and-product-development-amid-misconceptions-says-made-in-india-made-for-the-world-81848.htm) **Constraint** Much critical open-source code rests on a few maintainers, so one flaw or abandoned project forces costly scrambles for every user. [Cu Copper](https://www.materialinsights.org/commodities/copper/)[DC Data centres](https://www.materialinsights.org/energy/e_data_centres/)[HP Heat pumps, air conditioning and refrigeration](https://www.materialinsights.org/energy/e_heat_pumps/)[Data centres and cloud](https://www.materialinsights.org/industries/data_centres/) 3 / 7 · Software products #### Sixty apps sold by subscription **₹12,313cr**Zoho operating revenue, 2024-25 On top sit more than 60 business apps, from accounting and customer management to email, sold by monthly or yearly subscription. Filings with the Registrar of Companies show Zoho earned operating revenue of ₹12,313 crore in 2024-25, up nearly 18%, and net profit of ₹3,191 crore; North America brought about 41% of revenue, Asia 30% and Europe 23%.^[3](https://www.medianama.com/2026/04/223-zoho-revenue-crosses-rs-12000-crore-fy25-profit-slips)^,^[4](https://tradearabia.com/News/390010/Zoho-Corporation-achieves-milestone-of-150-million-users) **Constraint** Accounting and CRM systems hold core records and take a year or more to replace, which keeps customers with incumbents. [DC Data centres](https://www.materialinsights.org/energy/e_data_centres/)[Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[Data centres and cloud](https://www.materialinsights.org/industries/data_centres/) 4 / 7 · Software products #### Mobile apps through two stores **99.97%**mobile web traffic, Android or iOS Zoho's mobile apps, and consumer products such as its Arattai messenger, reach phones through just two app stores. Android and iOS carried 99.97% of the world's mobile web traffic in October 2026, by StatCounter's measure, so Google and Apple set the rules, review times and, for many paid apps, a commission on in-app purchases.^[5](https://gs.statcounter.com/os-market-share/mobile/worldwide) **Constraint** Two app-store owners control mobile distribution, so a policy or fee change at Google or Apple reaches every app maker at once. [DC Data centres](https://www.materialinsights.org/energy/e_data_centres/)[Si Silicon](https://www.materialinsights.org/commodities/silicon/)[Data centres and cloud](https://www.materialinsights.org/industries/data_centres/)[Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/) 5 / 7 · IT services and delivery #### Products are India's smaller software business **US$23bn**software product revenue, FY26 (estimate) Zoho is unusual. Nasscom expects India's tech industry, including hardware, to earn about US$315 billion in FY26, but most of it is services: IT services US$149 billion, engineering R&D US$63 billion and business process work US$59 billion. Software products earn only about US$23 billion, so the industry mainly sells engineers' time rather than code it owns.^[6](https://www.etvbharat.com/en/business/india-fy26-tech-revenues-hit-usd-315-billion-enn26022404879) **Constraint** Services revenue grows with headcount and billing rates, while products need years of investment before they earn. [Bld Energy in buildings](https://www.materialinsights.org/energy/e_buildings/)[ICE Internal combustion engines and gensets](https://www.materialinsights.org/energy/e_engines/)[Data centres and cloud](https://www.materialinsights.org/industries/data_centres/)[Real estate](https://www.materialinsights.org/industries/real_estate/) 6 / 7 · Channel and talent #### Partners reach a million customers **1m+**Zoho paying customers, 2026 Zoho sells directly online and through partners who resell licences, migrate data and train staff at small and mid-sized firms. The company says it passed 150 million users and more than one million paying customers by March 2026, with customers up 32% in 2025, and employs more than 19,000 people worldwide.^[4](https://tradearabia.com/News/390010/Zoho-Corporation-achieves-milestone-of-150-million-users) **Constraint** Many resellers sell the same products, so buyers can switch at renewal and partners can move to rival vendors. [Bld Energy in buildings](https://www.materialinsights.org/energy/e_buildings/)[Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[Computers and electronics](https://www.materialinsights.org/industries/computers_electronics/) 7 / 7 · Channel and talent #### A deep pool of software engineers **59.5 lakh**direct tech employees, FY26 (estimate) The last link is people. Nasscom estimates India's tech industry employed about 59.5 lakh people directly in FY26, a pool that colleges, recruiters and staffing firms keep refilling. Zoho adds its own route: its fee-free Zoho Schools of Learning pays school leavers a stipend, trains them in Chennai and Tamil Nadu towns such as Tenkasi, and supplies over 10% of its staff.^[6](https://www.etvbharat.com/en/business/india-fy26-tech-revenues-hit-usd-315-billion-enn26022404879)^,^[7](https://www.silicon.co.uk/press-release/zoho-schools-of-learning-celebrates-its-20th-anniversary-announces-new-campuses-in-tharuvai-and-kumbakonam-india) **Constraint** Pay and attrition track global demand, and firms compete hard for scarce senior and AI skills even within a deep pool. [Bld Energy in buildings](https://www.materialinsights.org/energy/e_buildings/)[Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[Education and research](https://www.materialinsights.org/industries/education_research/) #### What the chain shows The base of the stack, chips and US clouds, is foreign; Zoho shows an Indian firm can own the product layer, India's main software gap. Sources 1. [Q2 cloud market passes $143 billion; highest growth rate in eight years](https://www.srgresearch.com/articles/q2-cloud-market-passes-143-billion-highest-growth-rate-in-eight-years) Synergy Research Group, 2026 2. [Zoho founder clarifies data hosting and product development amid misconceptions, says 'Made in India, made for the world' (Sridhar Vembu statement)](https://www.storyboard18.com/brand-marketing/zoho-founder-clarifies-data-hosting-and-product-development-amid-misconceptions-says-made-in-india-made-for-the-world-81848.htm) Storyboard18, 2025 3. [Zoho revenue crosses Rs 12,000 crore in FY25, profit slips (consolidated statements from RoC filings)](https://www.medianama.com/2026/04/223-zoho-revenue-crosses-rs-12000-crore-fy25-profit-slips) MediaNama, 2026 4. [Zoho Corporation achieves milestone of 150 million users (company announcement)](https://tradearabia.com/News/390010/Zoho-Corporation-achieves-milestone-of-150-million-users) TradeArabia, 2026 5. [Mobile operating system market share worldwide (October 2026)](https://gs.statcounter.com/os-market-share/mobile/worldwide) StatCounter Global Stats, 2026 6. [India FY26 tech revenues seen 6.1% up at USD 315 billion (Nasscom Strategic Review 2026 estimates)](https://www.etvbharat.com/en/business/india-fy26-tech-revenues-hit-usd-315-billion-enn26022404879) ETV Bharat, reporting Nasscom, 2026 7. [Zoho Schools of Learning celebrates its 20th anniversary, announces new campuses in Tharuvai and Kumbakonam (press release)](https://www.silicon.co.uk/press-release/zoho-schools-of-learning-celebrates-its-20th-anniversary-announces-new-campuses-in-tharuvai-and-kumbakonam-india) Zoho, via Silicon UK, 2025 ## Other sections - [Overview](https://www.materialinsights.org/industries/software_it/index.md) - [Where ₹100 goes](https://www.materialinsights.org/industries/software_it/cost-mix/index.md) - [Price links with suppliers](https://www.materialinsights.org/industries/software_it/price-links/index.md) - [Linked industries](https://www.materialinsights.org/industries/software_it/linked-industries/index.md) - [Value chain](https://www.materialinsights.org/industries/software_it/value-chain/index.md) - [Materials drawn on](https://www.materialinsights.org/industries/software_it/materials/index.md) - [Chokepoints and risks](https://www.materialinsights.org/industries/software_it/risks/index.md) - [Sources](https://www.materialinsights.org/industries/software_it/sources/index.md)