Spending on public cloud services expenditure in Australia is predicted to hit A$5 billion by the end of the year, according to a new Gartner report. This would be a 17.1 percent rise over the $4.3 billion recorded last year, Gartner says.

Gartner tips software-as-a-service (SaaS) revenue to rise 25.1 percent to A$1.9 billion, while platform-as-a-service (PaaS) revenue is forecast to reach $262 million, up no less than 28.4 percent.

Meanwhile cloud management and security services revenue should hit $238 million, up 22pc from last year’s figure of $195 million.

Globally, Gartner forecasts total public cloud services revenue to reach $260.2 billion in 2017, up from $219.6 billion in 2016. SaaS and IaaS performance are said to be driving the 18.5 percent growth rate.

Sid Nag, research director at Gartner, said SaaS revenue has been greater than previously forecast. “Final data for 2016 shows that SaaS revenue was far greater in 2016 than expected, reaching $48.2 billion,” he said.

He added: “Strategic adoption of platform-as-a-service offerings is also outperforming previous expectations, as enterprise-scale organisations are increasingly confident that PaaS will be their primary form of application development platform in the future.”