Kiwi eyes reach the sky as public cloud market nears NZ$9 billion mark

"Despite challenges in the global economy, we expect consistent and stable growth to continue through to 2018."

The public cloud services market in the mature Asia/Pacific and Japan (APJ) region, including New Zealand and Australia, is on pace to grow 14.2 percent in 2015 to total NZ$9.4 billion, up from NZ$8.3 billion in 2014.

As a result of the gathering momentum, research analyst firm Gartner predicts that in 2018, total public cloud services spending in the mature APJ region will rise to around NZ$14.7 billion, according to current exchange rates.

The fastest growth segment of the cloud services market in mature APJ region, cloud management and security services, is expected to grow 29.9 percent in 2015 to NZ$338 million.

“Many countries in the mature Asia/Pacific Japan region have solid reliable telecommunications infrastructure and relatively advanced technology usage profiles," says Ed Anderson, research vice president, Gartner.

"Despite challenges in the global economy, we expect consistent and stable growth to continue through to 2018."

Categorising Australia, Japan, New Zealand, Singapore and South Korea as the mature Asia/Pacific market, Gartner predicts that by 2018, business process as a service (BPaaS) cloud services will make up 9.2 percent of the overall public cloud services market in APJ.

Meanwhile platform as a service (PaaS) will represent 3 percent of the market, SaaS will be at 21.5 percent, cloud management/security services at 4 percent, infrastructure as a service (IaaS) will be at 9.8 percent, and the remaining 52.5 percent will come from cloud advertising.

Cloud management and storage and SaaS will be among the faster growing public cloud services during through 2018 as more enterprise and government users jump onto cloud services.

“Increased intra-region integration in APJ across services and industries will drive public cloud usage as countries in this region break down borders through trade bloc agreements such as the ASEAN Economic Integration 2015 and the Trans Pacific Partnerships," adds Fred Ng, senior research analyst, Gartner.

"This will drive more mobility, big data sharing and analytics and public cloud infrastructure and applications to support these initiatives."

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