Wednesday, 03 April 2019 10:46

Strong growth in Australian spending on public cloud services: report

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Strong growth in Australian spending on public cloud services: report Image courtesy of jscreationzs at FreeDigitalPhotos.net

Australian spending on public cloud services is forecast to grow 19% to A$6.5 billion in 2019, with software-as-a-service representing by far the largest proportion of spending, according to a newly published analyst report.

Global analyst firm Gartner says in its report — Forecast: Public Cloud Services, Worldwide, 2016-2022, 4Q18 Update — that while software-as-a-service represents by far the largest proportion of spending in Australia, strongest growth will come from cloud infrastructure services or IaaS.

And Gartner forecasts that worldwide the public cloud services market is projected to grow 17.5% in 2019 to total US$214.3 billion, up from US$182.4 billion in 2018.

gartner cloud peter one

“Cloud services are definitely shaking up the industry,” said Sid Nag, research vice-president at Gartner.

“At Gartner, we know of no vendor or service provider today whose business model offerings and revenue growth are not influenced by the increasing adoption of cloud-first strategies in organisations. What we see now is only the beginning, though. Through 2022, Gartner projects the market size and growth of the cloud services industry at nearly three time the growth of overall IT services.”

According to recent Gartner surveys, more than a third of organisations see cloud investments as a top three investing priority, which is impacting market offerings.

Gartner expects that by the end of 2019, more than 30% of technology providers’ new software investments will shift from cloud-first to cloud-only, and says this means that license-based software consumption will further plummet, while SaaS and subscription-based cloud consumption models continue their rise.

gartner cloud peter two

“Organisations need cloud-related services to get onboarded onto public clouds and to transform their operations as they adopt public cloud services,” Nag said.

“Currently almost 19%  of cloud budgets are spent on cloud-related services, such as cloud consulting, implementation, migration and managed services, and Gartner expects that this rate will increase to 28% by 2022.

“As cloud continues to become mainstream within most organisations, technology product managers for cloud related service offerings will need to focus on delivering solutions that combine experience and execution with hyperscale providers’ offerings.

“This complementary approach will drive both transformation and optimisation of an organisation’s infrastructure and operations.”

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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