Gartner logo 300x68 Gartner: APAC Public Cloud Spending to Reach $7.4 Billion in 2015Market dynamics vary considerably when considering cloud market size and growth in different regions of the world market. In general, emerging markets in Asia Pacific show the highest rates of growth, while being the smallest as compared to the global markets.

Gartner in a new report predicts the public cloud services in APAC region will reach no less than $7.4 billion this year, up from $6.5 billion in 2014. The increase represents a growth rate of 14.2 percent in 2015. By 2018, Gartner predicts the total cloud services spending in Asia Pacific and Japan will hit $11.5 billion.

The business process as a service (BPaaS) cloud services will make up 9.2 percent of the overall public cloud services market in the APJ region by 2018, while platform as a service (PaaS) will represent 3 percent, SaaS will make up 21.5 percent of the public cloud services market in the region, cloud management and security services at 4 percent, infrastructure as a service (IaaS) will be at 9.8 percent, and the remaining 52.5 percent will come from cloud advertising by 2018.

The continued growth of the cloud services market will result from adopting cloud services for production systems and workloads, in addition to development and testing scenarios, which led, in most cases the use of public cloud services today. Proof of this increase is reflected in the increasing demand for cloud services to users in organizations encountered by increasing the supply of cloud services from suppliers.

Gartner says many countries in the mature Asia Pacific including Japan region have solid reliable telecommunications infrastructure and relatively advanced technology usage profiles. Despite challenges in the global economy, Gartner expects consistent and stable growth to continue through to 2018.

Increased intra-region integration in APJ across services and industries will drive public cloud usage as countries in this region break down borders through trade bloc agreements such as the ASEAN Economic Integration 2015 and the Trans Pacific Partnerships, which will drive more mobility, big data sharing and analytics and public cloud infrastructure and applications to support these initiatives.

Local economic factors, regulatory issues, local political climate, diverse landscape of global and local suppliers, including non-cloud providers, and other factors specific to each country provide a unique market in each country and region.

The latest report from the Asia Cloud Computing Association (ACCA) finds Japan as clear number leader in cloud services in APAC region, followed by New Zealand, Australia, Singapore, Hong Kong, and South Korea. China and India are ranked 11th and 13th respectively in the 14-nation list. The knowledge economy and cloud computing is the next great leveller for the region, poised to help accelerate the momentum around trade and economic integration in Asia.

A recent Cloud Security Alliance report found that companies have matured and are now seeking to establish policies and processes for employees to take advantage of cloud services that support the growth of activity, but without compromising security, regulatory compliance, and governance of corporate data.

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