Frost & Sullivan: Greater Demand For Cloud Services To Be Driven By Need To Reduce IT Spending In Weaker Economic Outlook For Australia In 2014
SYDNEY, Sept. 10, 2013 /PRNewswire/ -- In the past year, Australia has seen a strong take-up of cloud offerings adopted across an increasingly wide range of industries. This trend was prevalent across small to large organisations, but especially amongst small-and-medium enterprises (SMEs), with the adoption of Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) being particularly strong.
These findings were from Frost & Sullivan's latest report, State of Cloud Computing in Australia Report 2013 which also indicated that public cloud offering has seen very strong growth in the last 12 months. Many organisations had initially used public cloud offerings for test and development type activities, but are now migrating a wider range of production workloads / core business systems to the cloud, including ERP, CRM and web services. Also many Australian organisations currently using private clouds are gradually transitioning to hybrid clouds, which offer some characteristics present in public clouds.
Whilst there are still concerns about data location and data sovereignty, these concerns are starting to decline. Data hosting capabilities are no longer highlighted by IT decision makers as the top criteria when selecting a cloud provider. This indicates that more IT decision makers are seeing the benefits of a true public cloud offering and, whilst data sovereignty might be a concern in some industries, overall its importance is reducing significantly.
The weak economic outlook in the Australian market, which is likely to continue throughout 2014, will drive a greater focus on reducing IT spending. With many organisations currently undergoing restructuring and with layoffs being announced in many sectors in Australia, there will be pressure for organisations to rethink their IT strategies. Moving to a cloud delivery model will also mean that fewer IT staff will be needed in the future for some of the tasks that were previously handled internally.Frost & Sullivan's survey of IT decision makers in Australia shows that an increasing number of organisations are adopting the cloud model to benefit from the greater flexibility and lower costs in accessing the IT resources that the cloud model offers:
- Over 60% of organisations in Australia that are currently using cloud-based solutions plan to increase their cloud budget over the next 12 months, whilst only 2% plan to decrease their budgets. This indicates that the cloud market continues to be in a strong growth phase.
- 31% of organisations in Australia are likely to consider enlisting a cloud broker in the next 12 months to facilitate their usage of the system. The primary benefit of the cloud broker will be to offer a single point of contact for all the different cloud vendors.
- 24% of organisations that currently do not access storage via the cloud are likely to do so in the next 12 months. Public cloud storage offerings such as Google Drive and DropBox in particular are becoming very popular amongst smaller organisations.
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