Gartner sees Australian public cloud spend hit $23.2 billion next year

Analyst firm Gartner has forecast Australian cloud spending to reach $23.2 billion in 2023, a substantial increase of 19.3 per cent from this year.

Every cloud market segment is expected to grow next year, Gartner said.

Spending on infrastructure and platform-as-a-service (IaaS and PaaS) is forecast to grow by 24.6 per cent and 22.7 per cent respectively.

“Spending on public cloud services in Australia will break 50 per cent of its total addressable market for the first time next year, due to the continued growth in adoption of IaaS and PaaS, and the infrastructure required to support the rapid uptake of AI,” Michael Warrilow, research vice president at Gartner said.

“However, most Australian organisations remain immature in how they manage the cost of cloud," he added.

In 2024, CFOs are going to put much greater scrutiny on continuing rapid growth in cloud spend," Warrilow said.

The Australian growth figures for next year are similar to what Gartner predicts will be seen worldwide.

End-user spending on public cloud services worldwide is expected to grow 20.4 per cent next year, reaching US$678.8 billion.

Like in Australia, all segments of the cloud market are expected to post growth.

For IaaS, Gartner sees 26.6 per growth in 2024 to US$182.2 billion, whereas PaaS spending is set to increase by 21.5 per cent too reach US$176.5 billion.

Gartner vice president analyst Sid Nag said "cloud has become essentially indispensable."

“However, that doesn’t mean cloud innovation can stop or even slow," Nag said.

"The tables are turning for cloud providers as cloud models no longer drive business outcomes, but rather, business outcomes shape cloud models," he added.