Australia is set to be one of the top five Asia Pacific countries for infrastructure-as-a-service (IaaS) revenue growth by 2024, as the market segment in the region is forecast to reach US$39.3 billion.
This is according to research firm GlobalData, which claimed Australia, as well as China, Japan, India and South Korea were the largest markets for IaaS revenue growth in the region from 2019 to 2024, accounting for over 80 per cent of the total market share.
Furthermore, GlobalData’s market opportunity forecasts model predicted IaaS will be the fastest growing IT segment from 2019 to 2024 in APAC, as it accounted for 21 per cent of the region's total cloud computing revenue in 2019.
Across APAC, IaaS revenue is expected to grow at a five-year compound annual growth rate (CAGR) of 11.2 per cent over the five-year period.
Anshuma Singh, technology analyst at GlobalData, said the demand was mostly boosted from governments in the region modernising their existing IT infrastructure, as well as server virtualisation initiatives.
“Maintaining and owning a data centre is expensive and complicated. Against this backdrop, IaaS has emerged as a universal technology in the cloud environment. This will encourage businesses to implement cloud infrastructure services within their premise to reduce operating costs and enhance productivity,” she said.
Examples of governments embracing the cloud services in the market, either directly or indirectly, include India’s Digital India campaign and Malaysia’s Cloud-First Strategy, GlobalData’s research claimed.
The region is also seeing IaaS vendors focusing on strategic partners with local and global telecommunication service providers to expand their regional presence.
As an example, Amazon introduced AWS Wavelength, an infrastructure offering targeted towards mobile edge computing applications. Following this, telcos such as Vodafone, KDDI, SK Telecom and Verizon partnered with AWS to develop edge computing services on 5G networks across Japan and South Korea, as well as Europe.
Additionally, Alibaba Cloud partnered with India-based cloud service distributor ZNet Technologies in 2019 to strengthen its Indian presence.
IaaS's revenue growth forecast follows a number of other IT spending segments ramping up through to 2024, including managed managed security services, robotic process automation (RPA) and enterprise storage.