Public cloud services to top $10 billion this year and $13.6 billion by 2019: Gartner

The public cloud services market in the mature Asia/Pacific (AP) region is forecast to grow 17.7% in 2017 to total $10 billion, up from $8.5 billion in 2016, according to Gartner.

By 2019, Gartner predicts that total public cloud services spending in the mature AP region will rise to $13.6 billion.

Gartner defines public cloud services are shared, meterable, elastic and scalable multi-tenanted IT offerings delivered as a subscription-based service to external customers using internet technologies. Gartner categorizes Australia, New Zealand, Singapore and South Korea as the mature AP market.

The highest growth for the cloud services market in the mature AP market comes from software as a service (SaaS) with a 28.5% increase in 2017, and platform as a service (PaaS) growing 26.7% this year (see table, below).

Mature AP public cloud services forecast (millions of US dollars)

2016 2017 2018 2019 2020
Cloud Business Process Services (BPaaS) 845 906 950 1,003 1,058
Cloud Application Services (SaaS) 1,756 2,258 2,832 3,503 4,290
Cloud Application Infrastructure Services (PaaS) 333 422 507 603 711
Cloud System Infrastructure Services (IaaS) 786 945 1,131 1,312 1,503
Cloud Management and Security Services 323 406 479 562 645
Cloud Advertising 4,485 5,102 5,838 6,661 7,623
Total 8,529 10,038 11,736 13,644 15,831

Source: Gartner (January 2017)

“The increase in SaaS and PaaS are indicators that migration of application and workloads from on premises data centers to the cloud, as well as development of cloud ready and cloud native applications, are fueling growth in the cloud space,” said Sid Nag, research director at Gartner. “Software vendors will continue to shift investments from on-premises license-based software to cloud-based offerings.”

On a related note, Gartner also said separately that India’s public cloud services market will grow 38% in 2017 to total $1.81 billion.

The highest growth there will continue to be driven by infrastructure as a service (IaaS) which is projected to grow at 49.2 percent in 2017, followed by 33 percent in SaaS and 32.1% in PaaS. The increase of SaaS and PaaS are indicators that the migration of application and workloads from on premises data centers to the cloud, as well as the development of cloud ready and cloud native applications, are fueling the growth in the cloud space.

India public cloud services Forecast (millions of US dollars)

2016

2017

2018

2019

2020

Cloud Business Process Services (BPaaS)

88

113

145

186

236

Cloud Application Services (SaaS)

396

527

675

824

1006

Cloud Application Infrastructure Services (PaaS)

107

141

182

230

287

Cloud System Infrastructure Services (IaaS)

486

725

1051

1473

2028

Cloud Management and Security Services

116

152

190

234

281

Cloud Advertising

123

158

189

223

266

Total

1,316

1,817

2,432

3,169

4,104

Source: Gartner (January 2017)

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