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Regional public cloud services spending to hit $124B by 2025
- 15 July, 2021 09:40
Enterprises in Asia Pacific, excluding Japan, (APEJ) are anticipated to continue latching onto public cloud services over the next four years, with the market expected to reach US$124 billion by 2025.
According to analyst firm IDC, this is due to the COVID-19 pandemic causing most enterprises in the region to prioritise digital infrastructure resiliency, with public cloud services viewed as a means to achieve this.
"Focus is now shifting to post-pandemic growth to support new business operational requirements, rapid scalability, reduced risk, and enhanced customer experience,” said Mario Allen Clement, senior market analyst at IDC’s APEJ IT Spending Group.
“IT Infrastructure development and change in organisation policy have further boosted growth in spend.”
Within the market, cloud infrastructure-as-a-service (IaaS) is forecast to grow by 32.7 per cent in 2021, accounting for about 46 per cent of the spend. It is also expected to surpass cloud software spend over the next few years due to the potential emphasis being placed on infrastructure deployment.
Software-as-a-service is predicted to come next with 41 per cent of the spending share, followed by platform-as-a-service (PaaS) with 12 per cent.
"Cloud and cloud-centric operating models have become integral components of the modern IT environment,” said Daphne Chung, research director, IDC APEJ Cloud Services and Software.
“The pandemic has put cloud to the test in terms of delivering on the promises of agility, flexibility and scalability, and organisations are recognising it as critical to their IT strategy moving forward as they embrace digital infrastructure resilience to underpin their [digital transformation] journey.”
As for which enterprises are expected to jump on the public cloud market this year, professional services are set to be behind the industry with the largest demand, with predicted growth of over 25 per cent in 2021.
Banks are geared to come in second place with expected growth of 25 per cent due to the industry requiring secure cloud connections in order to protect employees when working from home.
The dedicated cloud IaaS market, meanwhile, is set to become extremely lucrative, with annual recurring revenues to skyrocket up 100 times to US$14 billion by 2025, as reported earlier this month.