SYDNEY, AUSTRALIA – Uptake of cloud computing within Australian organisations continues to grow strongly with Infrastructure-as-a-Service (IaaS) attracting the highest spending increase in 2015. More than half of all organisations greater than 20 employees are now using public cloud IaaS for at least some part of their IT infrastructure, according to a new study from emerging technology research firm Telsyte.
The Telsyte Australian Infrastructure & Cloud Computing Market Study 2015 forecasts the total market value for public cloud infrastructure services to reach $775 million by 2019, up from $366 million in 2015. Telsyte defines Infrastructure-as-a-Service (IaaS) as cloud-based server, storage and network services, but not software applications (SaaS).
As the cloud delivery model has become mainstream for IT infrastructure, more CIOs are moving workloads to public providers depending on type and strategic importance to the organisation.
Telsyte’s research also identified a growing trend in the hybrid cloud model which will be in use by some 40 per cent of enterprises by 2019. A hybrid cloud architecture involves some level of integration between private and public infrastructure and allows organisations more flexibility over where workloads are hosted.
Telsyte Senior Analyst Rodney Gedda says with cloud services presenting a low barrier to entry for IT infrastructure the organisation penetration is growing strongly but this will result in a large gap in how on-demand and on-premises services are managed.
“Both the uptake and spending value of cloud is increasing as more testing and production workloads, including virtual machine backups and disaster recovery, are being deployed off-premises,” Gedda says.
“The hybrid cloud architecture, and dealing with multiple cloud service providers, both present opportunities for more automation and process improvement,” Gedda says.
Emerging business demands driving cloud uptake
The adoption of cloud computing services is being driven by both traditional IT pressures and emerging technology. Cost reduction, time-to-market, scalability are ongoing traditional IT pressures CIOs face and this is being compounded by emerging workloads like big data analytics, Internet of Things and personal apps in the workplace.
Gedda says the demand for cloud-based infrastructure will continue to be driven by emerging technology and the uptake and maturity of virtualisation and private cloud use. “More vendors are also pushing a cloud-only procurement model which will further drive uptake,” Gedda says.
Interest in Networking-as-a-Service (NaaS) growing
Telsyte’s research has uncovered latent demand for cloud networking which is rising to prominence alongside server and storage IaaS with more than half of CIOs looking to adopt NaaS in the future.
The immediate opportunities for NaaS will lie in low-latency services like security and WAN optimisation with traffic management and data centre networking set to follow as last-mile bandwidth improves.
Cloud adoption barriers eroding
Despite talk about corporate and legal policies preventing Australian organisations from using offshore cloud services, Telsyte research indicates nearly two-thirds of businesses that use the cloud are already using an offshore provider. Furthermore, 46 per cent of CIOs say they are not subject to any restrictions on the use of offshore cloud services.
“With competition from multinationals local providers will need to compete on features and service levels and not simply the fact that data is hosted in Australia,” Gedda says.
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About the Telsyte Australian Infrastructure & Cloud Computing Market Study 2015
The Telsyte Australian Infrastructure & Cloud Computing Market Study 2015 is an annual publication reporting on the local and multinational IaaS cloud services industry and subscriber trends. The study continues the year-over-year analysis with key market data, including market sizing and forecasts as well as CIO strategy and direction.
The Telsyte Australian Infrastructure & Cloud Computing Market Study 2015 is a comprehensive 100-page study available to subscribing organisations and includes:
- Market sizing and forecasts
- Technology use and trends
- On-premise and hybrid cloud strategy
- Vendor positioning and SWOT analysis
- Data center and private cloud strategy
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 a wholly-owned independent business unit of UXC Limited. UXC is an ASX-listed Australian IT services company and the largest Australian-owned ICT consultancy firm with over 2,500 customer organisations in the private and public sectors across Australasia. www.telsyte.com.au
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