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Public cloud revenues to hit $2 billion by 2016: IDC

Hamish Barwick | Feb. 1, 2013
More CIOs, IT managers indicate they will use public cloud services over the next three years, says analyst firm.

The Australian public cloud services market is tipped to heat up by 2016 with IDC Australia predicting that the segment's revenues will exceed $2.33 billion.

According to a new Cloud Computing Study 2012, the analyst firm found that almost 70 per cent of the 168 Australian CIOs and IT managers surveyed planned to use public cloud services over the next three years for enterprise resource planning (ERP), analytics and IT infrastructure.

The research firm attributed this rise in confidence to the introduction of more robust public cloud infrastructure-as-a-service (IaaS) offerings over the past year.

IDC data from the Australian Cloud Services 2011-2016 Forecast and Analysis report found that IaaS cloud services, including virtual private cloud (vPC), took the lead over software-as-a-service (SaaS) and contributed a 54 per cent segment share ($524 million) of the total public cloud services in 2012.

"The proliferation of vPC services from IT infrastructure vendors and service providers are driving growth in the IaaS market," said IDC Australia IT services senior analyst Raj Mudaliar.

"This uptake is also driven by the increasing number of global providers seeking local hosting partners, as well as migration of revenue from managed applications and infrastructure hosting markets."

While Mudaliar has forecast that all public cloud market segments are tipped to experience strong growth by 2016, two categories will "stand out".

The vPC category is tipped to rise from $251.8 million in 2012 to $720.2 million by 2016, he said.

"Growing at a compound annual growth rate [CAGR] of 30 per cent, vPC also more than doubles its segment market share of the total public cloud services market from 14 per cent in 2011 to 31 per cent in 2016."

In addition, platform-as-a-service (PaaS) is forecast to grow from $36.9 million in 2012 to $92.4 million in 2016, growing at a CAGR of 25.8 per cent.


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