According to global research firm Gartner, spending on public cloud services in Thailand is expected to surge 17.7% to 18.3 billion baht this year and will rise 25.2% to 22.9 billion baht next year.
The fastest growing segment of the public cloud market is desktop as a service (DaaS), a cloud-based desktop virtualisation service hosted by a third party enterprise. The DaaS market is projected to rise 71.7% this year “DaaS offers an inexpensive option for enterprises that are supporting the surge of remote workers and their need to securely access enterprise applications from multiple devices and locations.
The growth of public cloud service in Thailand is higher than the global market which is projected to be 6.3% to $257.9 billion this year, up from $242.7 billion in 2019. In the global level, DaaS is predicted to see the biggest growth this year, rising 95.4% to US$1.2 billion.
Software as a service (SaaS) remains the largest market segment and is forecast to grow to $104.7 billion in 2020. The research firm said there has been continued shift from on-premises license software to subscription-based SaaS models and the increased need for new software collaboration tools during the Covid-19 pandemic, which is propelling SaaS growth.
The second-largest market segment is cloud system infrastructure services, or infrastructure as a service (IaaS), which is forecast to grow 13.4% to $50.4 billion in 2020.
According to Gartner, cloud spending in many regions is expected to rise sharply as economies reopen and normal economic activities resumes.
The use of public cloud services offers the businesses advantages of cost scale with use and deferred spending. The businesses can invest significantly less cash upfront by utilizing cloud technology rather than scaling up on-premises data center capacity or acquiring traditional licensed software. Gartner also believed that organizations will expand the cloud functions supporting remote works in terms of collaboration software, admin, remote learning solutions, security and infrastructure.
In a meantime, IDC discloses the overall cloud computing market in Thailand will reach 15 billion baht in 2024 with a compound average growth rate (CAGR) of 19% from 2018, powered by digital transformation of businesses in the wake of the Covid-19.
The public cloud software (included applications, tools and platform as a service, excluded IaaS) expected to be a CAGR of 19%, from US$202 million in 2019 to be US$579 million in 2024 and will be US$299 million this year.
