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End user spending on public cloud services in New Zealand is set to reach $2.58 billion in 2022, a 26.3 per cent increase from last year, according to analyst firm Gartner.
Software as-a-service (SaaS) accounts for a majority of the total cloud market, but the fastest growing segments are platform as-a-service (PaaS) and infrastructure as-a-service (IaaS).
Gartner research vice president Michael Warrilow said the acceleration in cloud spending seen during the pandemic is expected to continue, as organisations respond to a new business dynamic.
In the past year, hyperscale providers have increased their presence in this region such as Amazon Web Services (AWS) spending up to $7.5 billion for availability zones in Auckland and Microsoft’s Azure data centre development in New Zealand.
In the Gartner 2022 CIO survey, 44 percent of CIOs in Australia and New Zealand earmarked cloud platforms for new or additional funding this year, ranked fourth behind cybersecurity, data and analytics, and integration technologies such as APIs.
Globally, end-user spending on public cloud services is forecast to grow 20.4 percent in 2022 to total US$494.7 billion, up from US$410.9 billion in 2021.
In 2023, Gartner anticipates end-user spending is expected to reach nearly US$600 billion.
“Cloud native capabilities such as containerisation, database platform-as-a-service (dbPaaS) and artificial intelligence/machine learning contain richer features than commoditised compute such as IaaS or network-as-a-service,” Gartner research vice president Sid Nag said.
“As a result, they are generally more expensive which is fueling spending growth.”
Globally, infrastructure-as-a-service (IaaS) is forecast to experience the highest end user spending growth in 2022 at 30.6 per cent, followed by desktop-as-a-service (DaaS) at 26.6 per cent and platform-as-a-service (PaaS) at 26.1 per cent.
The new reality of hybrid work is prompting organisations to move away from powering their workforce with traditional client computing solutions, such as desktops towards DaaS, which is driving spending to reach US$2.6 billion in 2022.
Demand for cloud-native capabilities by end-users accounts for PaaS growing to US$109.6 billion in spending.
