Australia’s Public Cloud Market Is Set To Hit $5.6 Billion This Year

Public cloud services spending in Australia is set to reach $5.55 billion (US$4.18 billion) by the end of the year, while the global market is expected to hit $276.73 billion (US$208.6 billion). But surprisingly, a large number of organisations still have no plans to use cloud services, according to analyst firm Gartner. Read on to find out more.

In Australia, the public cloud services market is predicted to grow by 14.4% to total $5.58 billion, up from $4.85 billion (US$3.65 billion) in 2015. Meanwhile, worldwide public cloud spending is expected to grow by 17.2% to $276.73 billion, up from $236.14 billion (US$178 billion).

The need for companies to modernise IT has driven the adoption of infrastructure-as-a-service (IaaS) and software-as-a-service (SaaS), which will see a 42.8% and 21.7% revenue increase in 2016, respectively. Public cloud strategies for many businesses have matured as well. But despite all of this, there are still a lot of companies out there that are either still stuck in the planning phase for cloud adoption or don’t have a plan at all.

“[T]he aspiration for using cloud services outpaces actual adoption. There’s no question there is great appetite within organisations to use cloud services, but there are still challenges for organisations as they make the move to the cloud,” Gartner research director Sid Nag said. “Even with the high rate of predicted growth, a large number of organisations still have no current plans to use cloud services.”

He noted that this is likely due to the over-inflated concerns about security in the cloud. To paraphrase, Nag said companies need to get over the exaggerated security concerns associated with public cloud services and more education is needed in this area.

Most organisations are already using a mix-bag of cloud services from different providers. Hybrid cloud remains a focal point for many organisations. But companies that are shunning hybrid cloud usage have concerns over integration challenges, application incompatibility as well as a lack of management tools, common API and vendor support.

“We know that public cloud services will continue to grow. We also know that private cloud services (of various types) will become more widely used. Therefore, providers must focus on the top hybrid cloud challenges to be successful in meeting the growing demand for hybrid cloud solutions,” Nag said.

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