Telsyte maturity model shows cloud finding favour for testing and development, as ICT priorities change
SYDNEY, AUSTRALIA – Australian enterprises are boosting their usage and increasing their spending on public cloud Infrastructure-as-a-Service (IaaS) according to new research from emerging technology analyst firm Telsyte.
The Australian IaaS market is on track to grow by over 60 per cent reaching $621M in 2016 and forecast to reach $1.049 billion by 2020. More than half of CIOs surveyed by Telsyte are planning to invest more in IaaS in the next 12 months.
The Telsyte Australian Infrastructure & Cloud Computing Market Study 2017 reveals local cloud uptake and spending has been driven by changing ICT priorities, with IT infrastructure management becoming a top ICT priority for Australian CIOs in the past 12 months, matching IT Security for the first time.
Telsyte research shows big data analytics, storage, IoT, artificial intelligence and process digitisation are all driving the demand for cloud services as enterprises work towards modernising legacy systems and deploying new workloads.
Fewer than 10 per cent of organisations with greater than 20 staff are not using any form of IaaS, indicating cloud services have quickly become a mainstream way of delivering IT infrastructure in Australia.
The study debuts Telsyte cloud computing maturity model for the Australian enterprise market which segments companies by six levels of maturity. Findings show that despite cloud uptake growing strongly, only 30 per cent of organisations are in the top two most mature levels.
“The use of cloud aligns well with Australian enterprise ICT and business priorities; however, we still have some way to go before most organisations are using cloud to its full potential,” Telsyte Senior Analyst, Rodney Gedda says.
Telsyte’s research found reliability and support factors far exceed cost for organisations when choosing a Managed Service Provider (MSP) or pure cloud provider.
Cloud-first policies overshadow cloud restrictions
More than a third (34%) of Australian enterprises now have a “cloud first” policy which is outweighing restrictions on cloud use, further driving uptake.
“As more global providers have extended their infrastructure to Australia, the data residency arguments for not using cloud have waned,” Gedda says.
According to Telsyte research, selective cloud use is favoured by Australian CIOs over blanket off-premises adoption as applications like content management, backups, DR and software development are moved to pure clouds and managed service providers.
Private cloud use up as organisations work to hybrid future
In addition to the growing appetite for public cloud services, Australian CIOs are investing in private cloud technology to enable more rapid service delivery.
With 78 per cent of enterprises building or planning to build a private cloud, it is looking like the preferred on-premises architecture for future deployments and infrastructure refresh programs.
Gedda says with more virtualisation and acceptance of cloud automation and self-service the platform is set for a hybrid cloud future where workloads are provisioned in response to business and application demands.
“There are many applications where it still makes business sense to deploy on private infrastructure, but having the agility to pick and choose the right cloud service for any application is the big promise of hybrid cloud,” he says.
CIOs are developing private clouds to respond to “business unit self-service”, which has risen to be second only to “more flexibility”.
Cloud containers, NaaS to drive innovation
Operating system level virtualisation, or “containers”, is finding favour among enterprises with 70 per cent using or investigating their use. Containers allow applications to be more portable across on-premises, MSP or pure cloud infrastructure.
The adoption of cloud networking, or Networking-as-a-Service (NaaS), is also growing alongside its server and storage counterparts with nearly 30 per cent of enterprises using some form for NaaS – from VPNs to firewalls and application acceleration.
“There are big opportunities for NaaS to improve operations and drive innovation as much of the complexity burden of network services is taken away from the customer,” Gedda says.
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Telsyte’s infrastructure and cloud research program provides leading insights into the technologies and services that are re-defining how Australian organisations, including the public sector, deploy and manage on-premises, MSP and cloud infrastructure and applications.
In preparing this study, Telsyte used:
- An online survey of a representative sample of Australians CIOs and IT decision makers with 260 respondents completed in August 2016.
- Interviews conducted with executives from software vendors, system integrators, hardware and cloud providers, as well as their channel partners.
- On-going monitoring of local and global market and vendor trends.
Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Telsyte is an independent business unit of CSC. www.telsyte.com.au
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