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