Public cloud services revenue is expected reach AU$5 billion in revenue in 2017, 17.1 per cent more than 2016’s AU$4.2 billion tally.
According to Gartner’s predictions, software-as-a-service (SaaS) revenue is expected to grow 25.1 per cent in 2017 to reach AU$1.9 billion. However, the highest revenue growth will come from cloud application infrastructure services, specifically platform-as-a-service, which is expected to grow 28.4 per cent reaching AU$262 million.
The latest figures are part of the research and advisory firm’s worldwide forecast for the year.
Gartner projected ta worldwide public cloud services to grow 18.5 per cent in 2017 to total US$260.2 billion, up from US$219.6 billion in 2016.
Cloud system infrastructure services will represent the highest growth or 36.6 per cent reaching US$34.7 billion.
SaaS revenue is expected to grow 21 per cent to reach US$58.6 billion. According to Gartner research director, Sid Nag, the final SaaS revenue for 2016 was greater than expected.
"Strategic adoption of platform-as-a-service (PaaS) offerings is also outperforming previous expectations, as enterprise-scale organisations are increasingly confident that PaaS will be their primary form of application development platform in the future," said Nag.
"This accounts for the remainder of the increase in this iteration of Gartner's public cloud services revenue forecast."
Gartner predicts continued growth through to 2020, when the public cloud services revenue is expected to surpass the US$410 billion mark.
Nag expects 28 per cent of the total market revenue for infrastructure, middleware, application and business process services to have shifted to cloud in 2021.
"In the IaaS segment, Amazon, Microsoft and Alibaba have already taken strong positions in the market," said Nag.
"In the SaaS and PaaS segments, we are seeing cloud's impact driving major software vendors such as Oracle, SAP and Microsoft from on-premises, license-based software to cloud subscription models."