Australian public cloud market surged to $1.4 billion in 2020: Gartner

Australian public cloud market surged to $1.4 billion in 2020: Gartner


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The Australian infrastructure as a service (IaaS) market surged to A$1.4 billion in total revenue in 2020, research from Gartner revealed.

In comparison, the market grew 40.4 percent from $1 billion in 2019, as Australian organisations accelerated their commitment to public cloud.

AWS, Azure and Google Cloud remain the biggest vendors, accounting for 70 percent of the market. While seeing its market share decline, AWS remained the top vendor, followed by Microsoft and Google.

“Australian organisations accelerated their commitment to public cloud in 2020 and are now investing to support new opportunities in 5G, cloud-native applications, AI and data analytics,” Gartner research vice president Michael Warrilow said.

“Leading cloud providers continue to invest locally to overcome the tyranny of distance. It’s no longer just about Sydney or Canberra. They are adding new regional capabilities spanning from Perth in our west, Auckland in the east, Jakarta and Kuala Lumpur to our north and Melbourne in the southeast.”

The increase was in line with the global IaaS market, which grew 40.7 percent to US$64.3 billion, up from US$45.7 billion in 2019.

However Alibaba Cloud is the third biggest vendor globally behind AWS and Azure, with 9.5 percent of the market compared to Google Cloud’s 6.1 percent. Huawei was the fifth largest vendor.

AWS’s global revenue was US$26.2 billion, up 28.7 percent from US$20.4 million in 2019. Its market share also declined from 44.6 percent in 2019 to 40.8 percent in 2020.

Azure meanwhile grew close to 60 percent to US$12.7 billion in revenue in 2020, aided by existing Microsoft Azure customers migrating their mission-critical workloads, including those in healthcare, manufacturing and retail.

Alibaba Cloud grew 52.8 percent to $6 billion, up from $4 billion in 2019, with education as its fastest growing sector. Google Cloud grew the fastest at 66 percent to US$4 billion in 2020, driven by spending from the retail, government and healthcare sectors.

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