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Public cloud services in mature APAC markets to reach $10bn in 2017

Increasing adoption of cloud-based applications and platforms has been fuelling the growth of cloud services in the Asia-Pacific region

The public cloud services market in mature Asia-Pacific (APAC) economies is expected to grow by 17.7% this year to reach $10bn, up from $8.5bn in 2016, according to Gartner.

By 2019, the technology research firm predicts that total public cloud services spending in the mature APAC region will rise to $13.6bn.

Gartner defines public cloud services as shared, elastic and scalable multi-tenanted IT offerings delivered as a subscription-based service to customers using internet technologies. It considers Australia, New Zealand, Singapore and South Korea as mature APAC markets.

The highest growth for cloud services in the mature APAC markets comes from software as a service (SaaS) and platform as a service (PaaS), which are expected to grow by 28.5% and 26.7% respectively in 2017.

Sid Nag, research director at Gartner, noted that the increase in SaaS and PaaS adoption has been fuelling the growth in cloud services in the region. This includes the migration of applications and workloads from on-premise datacentres to the cloud, and the development of cloud-ready and cloud-native applications.

One company in the APAC region that has recently moved to the cloud is Worldwide Information Network (WIN), which offers a cloud-based platform for independent freight and logistics companies in 180 countries to communicate with one another, regardless of the logistics software they are using.

Faced with availability challenges and the need to pre-buy hardware it needed to grow its business, WIN decided to switch to Amazon Web Services (AWS) from a dedicated hosting environment. The migration was supported by managed cloud service provider Rackspace.

Since the switch to AWS, WIN has reported much better resource pooling and gained the agility to scale, without increasing its IT spending. The company also said it had been able to “save money on staffing, and invest those savings in platform engineering and making products for customers”.

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