A recent report from Gartner found that cloud computing is a hyped-up term. The research firm believes that the overall cloud computing industry is past its peak of inflated expectations.

However, industry watchers in India believe that private cloud is seeing a lot of action. Public cloud however still seems to a hyped-up technology because security is still a big concern with it.

"In India, private cloud is seeing good action and it cannot be called a hyped term. There is a lot of uptake as far as private cloud is concerned. In future as well, private cloud will see many developments around I," believes Mohd. Arifuddin, AVP -- Sales -- Technology Solutions at Hyderabad based Locuz Solutions. However, he adds this is not a case with public cloud. The enterprises are still hesitant to port their data into public cloud because of the security and performance issues.

Praveen Dwarkanath, Co-Founder of Bangalore based MN World Enterprises agrees. "There are always apprehensions about public cloud. Although cloud computing has been there for decades in forms of mailing services like hotmail, the term 'cloud computing' is over hyped by people." he says.

"Private cloud will see more action than public cloud as partners needed to follow a proper route starting from internal cloud to private cloud then finally moving the client into public cloud. Customers in India are not well educated about cloud computing, hence they will always have security as a concern," Dwarkanath adds.

CIO India's Cloud Computing Survey 2012 establishes the fact that security is a major issue among the Indian enterprises. The survey of all major CIOs in India reveals that the increase in number of online breaches have made organizations more security aware but not cautious. The survey states that Indian CIOs are not prepared for the Cloud.

However, the survey also affirms advantages of private cloud. CIOs of Indian companies believe that private cloud is a way to built in better scalability and leveraging existing assets and increasing efficiency. It is largely preferred by Indian companies as it is a way to reduce total cost of ownership while improve peak application performance.