Aussie public cloud spend to grow by a fifth to $5.6b next year, Gartner says

Australian business investment forecast to outstrip global growth rate

Australian organisations are forecast to spend $5.6 billion on public cloud services in 2019, according to Gartner. 

Next year’s expected spend represents a more than 20 per cent increase on the $4.6 billion shelled out on public cloud this year.

The bulk of it will go towards software-as-a-service offerings, which is forecast to account for $3.2 billion of the spend, followed by business process services accounting for a billion across industry.

The fastest growing category of public cloud service spending is expected to be on infrastructure-as-a-service products – predicted to rise from $511 million this year to $652 million next year.

By 2020 local public cloud spend will reach $6.6 billion, and hit $7.7 billion by 2021, Gartner said.

Next year’s 20 per cent growth in Australia is significantly higher than the global average of 17.3 per cent.

By 2022, Gartner expects that 90 per cent of organisations purchasing public cloud IaaS will do so from an integrated IaaS and platform as a service (PaaS) provider, and will use both IaaS and PaaS capabilities.

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

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

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