NZ public cloud spend surges 30 percent to $1b

Research firm IDC says spending on public cloud services by New Zealand businesses grew 30.1 percent year-on-year (YoY) to reach $1.01b

According to IDC New Zealand's public cloud services tracker, software-as-a-service (SaaS) revenue was the biggest contributor, followed by infrastructure-as-a-service (IaaS).

Platform as a service (PaaS) was the fastest growing segment at 45.6 percent, up from 42 percent in 2017. Growth rates from both SaaS and IaaS declined in 2018 to 30 percent and 26 percent respectively

IDC’s ANZ market analyst for IT services, Chayse Gorton, said PaaS growth was the result of organisations embracing cloud-native application development processes in higher numbers.

“Many businesses are purchasing PaaS solutions from their existing IaaS provider,” he said. “This trend is putting pressure on less-established IaaS providers, as forward-looking organisations seek to enable a future transition to PaaS solutions.”

IDC says organisations will increasingly seek out PaaS solutions with specific capabilities such as analytics, artificial intelligence, and data management capabilities. “These two secondary markets are already in hot demand, accounting for 62.9 percent of PaaS revenues in 2018,” it says.

IDC predicts that PaaS will increase its share in the public cloud services market in 2019 as more organisations embrace cloud-native application development processes.

“PaaS solutions that can deliver on specific capabilities will be highly sought after by technology buyers. “Therefore, to succeed in the PaaS market, it will not be enough to rely on existing IaaS customers; instead, vendors must be on a continuous journey to add innovative features into their platform.”

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Copyright © 2019 IDG Communications, Inc.

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