Wednesday, 12 September 2018 11:40

Australian cloud services spending set to hit $5b+ in 2019

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Australian organisations are forecast to spend A$5.6 billion on public cloud services in 2019, a 20.3% increase from this year, and higher than the global growth rate of 17.3%, according to a new report.

In a report, analyst firm Gartner said software-as-a-service represented the largest category of cloud services spend in in Australia, but infrastructure services were growing fastest – while the worldwide market for cloud services in 2019 was forecast to climb to US$206.2 billion, up 17.3 % from US$175.8 billion in 2018.

And according to Gartner, cloud providers are expanding across categories as customers demand offerings with more depth and breadth for their hybrid environments.

gartner bs2

By 2022, Gartner says it expects that 90% of organisations globally purchasing public cloud IaaS will do so from an integrated IaaS and platform as a service provider – and will use both the IaaS and PaaS capabilities from that provider.

"Demand for integrated IaaS and PaaS offerings is driving the next wave of cloud infrastructure adoption," said Gartner research director Sid Nag.

Australia public cloud service revenue forecast (Millions of A$)

gartner bs

BPaaS = business process as a service; IaaS = infrastructure as a service; PaaS = platform as a service; SaaS = software as a service. Totals may not add up due to rounding.

“We expect that IaaS-only cloud providers will continue to exist in the future, but only as niche players, as organizations will demand offerings with more breadth and depth for their hybrid environments.

“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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Peter Dinham

Peter Dinham - retired in 2020. He is a 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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