Australian public cloud spend to hit $4.6bn this year

By Dylan Bushell-Embling
Wednesday, 12 September, 2018

Australian public cloud spend to hit $4.6bn this year

Australian organisations are on track to spend almost $4.65 billion on public cloud services this year, and this is expected to grow 20.3% in 2019 to $5.6 billion, Gartner projects.

The Australian market will exceed the global growth rate of 17.3% in 2019 and is expected to maintain a strong growth trajectory through to at least 2021, when it will reach $7.69 billion.

Software-as-a-service (SaaS) is the single largest segment of the Australian market. The segment is set to account for $2.63 billion worth of total spending this year, increasing to $3.28 billion next year and to $4.7 billion in 2021.

But infrastructure-as-a-service (IaaS) is the fastest-growing category of spending, with total revenue forecast to reach $511 million in 2018, grow to $652 million in 2019 and surpass $1 billion by 2021.

Business-processes-as-a-service (BPaaS) represents the second-largest category of spending (projected to be worth $977 million in 2018 and $1.14 billion in 2021). The remaining categories are platform-as-a-service (PaaS) ($253 million in 2018, $413 million in 2021) and cloud management and security services ($281 million in 2018, $435 million in 2021).

Globally, the total market is projected to reach US$175.8 billion ($247.6 million) in 2018 and grow to $278.3 billion in 2021. Growth is being driven by demand for integrated IaaS and PaaS offerings, which is reshaping the market, Gartner said.

“We expect that IaaS-only cloud providers will continue to exist in the future, but only as niche players, as organisations will demand offerings with more breadth and depth for their hybrid environments,” Gartner Research Director Sid Nag explained.

“Already, strategic initiatives such as digital transformation projects resulting in the adoption of multicloud and hybrid cloud fuel the growth of the IaaS market.”

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