Monday, 02 April 2012 20:11

Aussie companies look offshore for cloud services: report

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Large multi-national cloud computing providers like Amazon Web Services and Microsoft are making significant headway in the Australian business market with two-thirds of local enterprises that use Infrastructure-as-a-Service (IaaS) already using their services in some way, according to new research from one firm of technology analysts.

According to Telsyte, many organisations continue to operate IT service infrastructure - servers, storage systems - in disparate locations, including server rooms, branch offices and private data centres and this will not change drastically with the availability of cloud computing, which has been growing in parallel.

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.

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Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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