Highlights:
- Australian Public Cloud Services market to increase to about A$10.4 billion
- The proportion of IT Spending on cloud continues to rise
- SaaS remains the largest segment
- Remote working model leading to increased Cloud Spending
- About 70% of organisations plan to increase spending on Cloud
Gartner says Australian enterprises are expected to increase spending on Public Cloud Services by 18.2% in 2021, up to about A$10.4 billion. Growth in 2020 is expected to be 10.3%.
The proposition of Enterprise IT spending on Cloud has accelerated amid the pandemic. Spending on Cloud is projected to make up 14.2% of the total enterprise IT spending market in 2024, up from 9.1% in 2020.
According to a Gartner analyst, the pandemic has validated Cloud’s Value Proposition.
“The ability to use on-demand, scalable cloud models to achieve cost efficiency and business continuity is providing the impetus for organisations to rapidly accelerate their digital business transformation plans”.
The pandemic has validated Cloud’s Value Proposition
Gartner Analyst
Also read: IDC Forecasts Worldwide AI Spending will double in four years
SaaS continues to be the largest market segment even as PaaS is anticipated to grow by a higher margin at 26.6% (see illustrations).
The increased consumption of PaaS is driven by the remote working model with the need to have access to high performing, content-rich and scalable infrastructure to perform their duties, which largely comes in the form of modernised and cloud-native applications, notes Gartner.
Also read: RPA Software Market to reach nearly $2 Billion in 2021
A recent Gartner survey data indicates that almost 70% of organisations using cloud services today plan to increase their cloud spending in the wake of the disruption caused by COVID-19.
As enterprises increase investments in mobility, collaboration, and other remote working technologies and infrastructure, Gartner expects growth in the public cloud to be sustained through 2024.
The rising trend of cloud service providers partnering with telecommunications companies to extend their reach into the edge and support a hybrid workforce may also lead to further market growth.
Access Gartner report here
