Industry Research : Cloud in Australia: Confidence Up, Concerns Down
Use of cloud computing by Australian businesses is surging as their concerns about security and data sovereignty start to decline, according to research firm Frost & Sullivan.
Frost & Sullivan has just published a report ‘State of Cloud Computing in Australia Report 2013’ saying that it shows increased demand for cloud services driven by organisations’ need to reduce IT spending in light of weaker economic outlook for Australia in 2014. F&S reports: "Very strong local growth in both infrastructure-as-a-service (IaaS) and platform-as-a-service ... across an increasingly wide range of industries."
Frost & Sullivan says many organisations that had initially used public cloud offerings for test and development type activities are now migrating a wider range of production workloads / core business systems to the cloud, including ERP, CRM and web services. Also, those using private clouds are gradually transitioning to hybrid clouds, which offer some characteristics present in public clouds.
Audrey William, head of research for Frost & Sullivan ANZ’s, ICT Practice, said: "The greater overall business agility and flexibility that results from adopting cloud computing, as well as the reduction in an organisation’s computing and resource stresses, are the top drivers given by Australian organisations for adopting cloud based solutions."
F&S says that, 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."
Over 60 percent of organisations in Australia that responded to a Frost & Sullivan survey and that are currently using cloud-based solutions said they planned to increase their cloud budget over the next 12 months, and only two percent said they planned to reduce spending on cloud services.
With many organisations under pressure financially cloud is an attractive cost-saving option, Frost & Sullivan says. "Moving to a cloud delivery model will mean that fewer IT staff will be needed in the future for some of the tasks that were previously handled internally."
Frost & Sullivan concludes: "More CIOs are seeing the benefits of public cloud adoption and are making investments to move more workloads to the public cloud. Storage, office productivity applications and CRM are rated by IT managers as the main workloads that will move to the cloud in the next 12 months. ... Cloud is progressively seen as more than just a way of reducing IT costs. IT decision makers are gradually becoming more aware of the other benefits that the cloud offers such as agility and flexibility."
Posted by Veronica Silva Cusi, news correspondent
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Published: Monday, September 2, 2013