Australian public cloud market to reach $5bn in 2017

By Dylan Bushell-Embling
Monday, 16 October, 2017

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The Australian public cloud services market is on track to grow 17.1% this year to $5 billion, driven by strong demand for software as a service (SaaS) and platform as a service (PaaS) offerings.

Gartner has projected that SaaS revenue will grow 25.1% in 2017 to $1.9 billion. PaaS revenue will outpace this growth, but from a lower base, with revenues expected to reach $262 million.

Each of the major categories of public cloud services are expected to increase from 2016 with infrastructure as a service (IaaS) spending set to grow 14.5% to $475 million, business processes as a service (BPaaS) expected to grow 6.5% to $867 million and cloud management and security services in for a 22% increase to $238 million.

Cloud advertising revenues are meanwhile expected to grow 11% to $2.88 billion, Gartner said.

By 2020, total Australian public cloud services revenue is expected to increase to $7.7 billion, with cloud advertising and SaaS set to continue to dominate spending.

Globally, Gartner expects the total cloud market to grow 18.5% to US$260.2 billion in 2017 and climb to US$411.4 billion by 2020.

The proportion of total infrastructure, middleware, application and business process services shifting to the cloud is meanwhile expected to increase from 17% as of 2016 to around 28% by 2021.

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