Barriers to cloud ‘eroding’ as usage grows Featured

New data shows cloud usage in Australia is growing very quickly, with twice as many enterprises adopting Iinfrastructure-as-a-Service (IaaS) in 2013 as in the previous year.

Data from analyst group Telsyte shows that more than half Australian organisations with more than 20 employees are now using public cloud IaaS for at least some part of their IT infrastructure.

Telsyte’s ‘Australian Infrastructure and Cloud Computing Market Study 2014’ forecasts that the total market value for public cloud infrastructure services in Australia will reach $650 million by 2018, up from $305 million in 2014.

As the cloud delivery model is now 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 30% of enterprises by 2018. 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-premise services are managed.

“Many cloud investments are being done in parallel with existing on-premise infrastructure spending and as the market matures the hybrid approach will be more strategic for CIOs,” Gedda says. “The hybrid cloud architecture, and dealing with multiple cloud service providers, both present opportunities for more automation and process improvement.”


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. Nearly half (46%) of CIOs say they are not subject to any restrictions on the use of offshore cloud services.

“The multinationals have made inroads into the local cloud market and local providers will need to compete on features and service levels and not simply the fact that data is hosted in Australia,” says Gedda says.

But the growth in cloud spending does not spell the end for on-premise IT and many organisations are using virtualization technology to implement a cloud architecture under their control. Telsyte research indicates more organisations are implementing and considering private clouds, which have matured over the past 12 months.

“There is now a large range of private cloud management options for organisations looking to replicate the scalability and manageability of public clouds with their own servers.”

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Graeme Philipson

Graeme Philipson is senior associate editor at iTWire and editor of sister publication CommsWire. He is also founder and Research Director of Connection Research, a market research and analysis firm specialising in the convergence of sustainable, digital and environmental technologies. He has been in the high tech industry for more than 30 years, most of that time as a market researcher, analyst and journalist. He was founding editor of MIS magazine, and is a former editor of Computerworld Australia. He was a research director for Gartner Asia Pacific and research manager for the Yankee Group Australia. He was a long time IT columnist in The Age and The Sydney Morning Herald, and is a recipient of the Kester Award for lifetime achievement in IT journalism.

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