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Cloud computing the ‘new normal’

Nearly all Australian businesses are now using cloud computing in some way. It is often driven from outside the IT department.

Fully 86% of Australian enterprises are currently using cloud computing, up from 71% in 2012.And it is line-of-business (LOB) managers in leading-edge enterprises that are driving the trend, adding to the CIO’s cloud spending by direct acquisition of cloud services as a delivery mechanism for new competitive offerings within their own industries.

So says IDC in its 2013 Australia End-User Cloud Survey. The report finds that business units  are more likely than IT department (69.6% to 59.8%) to be the ones selecting service providers for cloud computing projects.

"Until 2012, cloud was primarily an IT label for IT infrastructure services delivered as a service,” says IDC’s Raj Mudaliar. “Now, cloud is no longer just an IT infrastructure play. Cloud-based business services being acquired by LOB managers will now drive growth in the use of externally sourced services.

“Cloud in 2013 is business as usual for CIOs and LOB managers. Cloud is becoming just another delivery model for a range of ‘as-a-service’ offerings  based on infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS)

IDC says that in the last year there has been a swing away from on-premises private cloud towards virtual private cloud (VPC), as the number of these offerings increased and their price points came closer to those of public cloud. “VPC has been a safe choice for medium-risk applications, but truly mission-critical applications like ERP will most often be deployed on dedicated private cloud (DPC), where a single tenant is hosted from service provider's data centre.

Responses to the survey indicate that SaaS selection now focuses on industry-specific applications and process functionality to improve business performance. “In 2013, hosted private cloud intentions are on the rise, with standardised services as part of the package-reducing demand for pure private cloud deployments.”

IDC expects the services component will increase as larger and more complex projects get underway.

IDC estimates the total Australia public cloud services (which includes SaaS, PaaS and IaaS) to grow from $884.4 million in 2012 to $2,671.9 million in 2017, at a CAGR of 24.7%. The report presents a detailed market analysis of key trends, drivers, inhibitors, adoption rates, preferred workloads, market sizing, forecast and future outlook for the Australia's cloud services market.

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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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