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Public cloud services in mature Asia/Pacific region tipped to reach US$7.4 billion

Public cloud services in mature Asia/Pacific region tipped to reach US$7.4 billion

Cloud management and security services continues to be the fastest growth segment of the public cloud services market in New Zealand, Australia, Singapore and South Korea, reports Gartner.


The mature Asia Pacific region for public cloud services covers New Zealand, Australia, Singapore and South Korea.
The mature Asia Pacific region for public cloud services covers New Zealand, Australia, Singapore and South Korea.

The public cloud services market in the mature Asia/Pacific (AP) region is on pace to grow 8.7 percent in 2015 to total $7.3 billion, up from $6.7 billion in 2014, according to Gartner.

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 says cloud management and security services continue to be the fastest growth segment of the public cloud services market in the mature AP region, with revenue projected to increase 21 per cent in 2015 to $234.3 million. This region covers New Zealand, Australia, Singapore and South Korea.

This year, it notes public cloud spending in the mature AP region will be just under Japan’s cloud spending of $7.3 billion.

By 2019, Gartner predicts that total public cloud services spending in the mature AP region will rise to $12.9 billion.

Related: Gartner: Preparing the IT team for public cloud

Speed of deployment is a primary driver of cloud usage, potentially capable of reducing setup time from days/weeks to days/hours.

Fred Ng, Gartner

Read more: The 3 phases of successful digital transformation


By 2019, business process as a service (BPaaS) cloud services will make up 7.7 percent of the overall public cloud services market in mature AP, platform as a service (PaaS) will represent 2.7 percent of the market, software as a service (SaaS) will be at 25.7 percent, cloud management/security services at 3.8 percent, infrastructure as a service (IaaS) will be at 8.3 percent. The remaining 51.8 percent will come from cloud advertising, reports Gartner.

Through 2019, SaaS and cloud management and security will be among the fastest growing public cloud services.

“Organisations continue to seek out IT solution delivery methods that are more responsive to changing business needs like public clouds,” says Fred Ng, senior research analyst at Gartner.

Key factors driving this growth include organisational agility, cost benefits, increased innovation with the potential for transformation, and elements of user self-service and control when using cloud, says Ng. “Speed of deployment is also a primary driver of cloud usage, potentially capable of reducing setup time from days/weeks to days/hours.”


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Read more: More than 50% of A/NZ CIOs lead digital transformation: Gartner

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