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Gartner Says Public Cloud Services in Mature Asia/Pacific Forecast to Reach $10 Billion in 2017

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Gartner Says Public Cloud Services in Mature Asia/Pacific Forecast to Reach $10 Billion in 2017
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The public cloud services market in the mature Asia/Pacific (AP) region is forecast to grow 17.7 percent in 2017 to total $10 billion, up from $8.5 billion in 2016, according to Gartner, Inc. By 2019, Gartner predicts that total public cloud services spending in the mature AP region will rise to $13.6 billion.

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 categorises 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 percent increase in 2017, and platform as a service (PaaS) growing 26.7 percent this year (see Table 1).

“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.”

Table 1. Mature AP Public Cloud Services Forecast (Millions of U.S. 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)

More detailed analysis is available for Gartner clients in the report “Public Cloud Services, Worldwide, 2014-2020, 4Q16 Update “.

About Gartner

Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior information technology (IT) leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to supply chain professionals, digital marketing professionals and technology investors, Gartner is the valuable partner to clients in more than 10,000 distinct enterprises. Gartner works with clients to research, analyze and interpret the business of IT within the context of their individual roles. Gartner is headquartered in Stamford, Connecticut, U.S.A., and has almost 9,000 associates, including 1,900 research analysts and consultants, operating in more than 90 countries. For more information, visit www.gartner.com.

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Gartner Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. The company delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 8,300 associates, including more than 1,800 research analysts and consultants, and clients in more than 90 countries. For more information, visit www.gartner.com.
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