The Australian market is open for more specialist IaaS and Platform-as-a-Service (PaaS) cloud service providers as many enterprises are looking overseas for such services. About two-thirds of enterprises are buying IaaS services from a global (not based in Australia) cloud service provider,' Telsyte senior analyst, Roger Gedda says.
The Telsyte Australian Infrastructure and Cloud Computing Market Study 2012 surveyed 260 CIOs about the penetration of the big cloud computing vendors within local enterprises, and how their IT policies permit data to be managed offshore.
According to Gedda, for many Australian CIOs the advent of on-demand cloud computing services has provided a 'compelling option for service delivery without the need to manage physical infrastructure.'
'About 35 per cent of Australian enterprises are subscribing to some type of IaaS or PaaS cloud service, with the majority of subscriptions, and data, heading to overseas providers. Gedda says.
'Public cloud services are being used for production and testing of server and storage environments to development, testing and deployment of applications.'
According to Telsyte's research, development and investment in on-premise infrastructure and private clouds is still strong with many unable to rely on public cloud services for a variety of reasons, including reliability and data location restrictions.
'Some 36 per cent of organisations have no restrictions on data being sent offshore so the opportunity for global cloud providers to compete with local operators is there,' Gedda says.
'However, a significant 29 per cent of CIOs say their organisation's data cannot leave Australia.'
With more than 50 per cent of Australian enterprises using server virtualisation technology, the interest in private clouds is also strong with 19 per cent of organisations building a private cloud and a further 35 per cent considering a private cloud, according to Telsyte.