Frost & Sullivan reports strong IaaS growth in Australia

The Australian infrastructure-as-a-service market grew 43 per cent last year, according to Frost & Sullivan.

The analyst firm is predicting that the IaaS market in Australia will hit $439 million by 2018.

The forecast is contained in a new report published by Frost & Sullivan, Australian Infrastructure as a Service (IaaS) Market Report 2014.

The report said that consolidation is likely in the IaaS market over the next few years, with profit margins shrinking in the public cloud space.

"In the consumer market, there is strong demand from use of data intensive services, such as videos, social networks and online gaming, especially through mobile networks," said Phil Harpur, senior research manager at Frost & Sullivan's Australia & New Zealand ICT practice

"Demand in the corporate market is being driven by access to information through a growing range of data intensive business applications, such as data mining and data analytics," the analyst said in a statement.

"An increasing number of business transactions and new sources of information such as social networks require dedicated big data solutions. Easier access to these applications via cloud computing is witnessing demand growth, which in turn is driving demand for cloud computing."

Earlier this year Gartner predicted that the overall public cloud services market in Australia will hit $4.15 billion this year. The figure represents almost 24 per cent year-on-year growth compared to 2014, according to the latest figures from Gartner

The growth in the Australian public cloud services market will outstrip the other countries in what Gartner describes as the 'mature' Asia/Pacific and Japan region (Australia, Japan, New Zealand, Singapore and South Korea).

Gartner predicts that in 2018, total public cloud services spending in the mature APJ nations will rise to US $11.5 billion.