Tuesday, 11 September 2012 19:09

IaaS market on fast track to increased adoption

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Australian businesses have moved past the initial cost savings they get from the adoption of cloud solutions to recognising  the  increased  agility and scalability that adoption offers, according to a new market report which says that increasing  awareness  of  cloud computing  is driving  an  influx of market participants, like telecommunications providers,  traditional  IT companies and pure-play cloud vendors, offering various cloud services.

Frost & Sullivan’s latest report indicates that the “robust momentum” which currently characterises the Australian IaaS and cloud computing market, sees many organisations, from large companies to SMBs, adopting cloud solutions.

According to Frost & Sullivan’s Industry  Analyst,  Datacenter  and  Cloud  Computing, APAC  ICT, Mayank Kapoor, most of the large organisations in Australia have now deployed a private cloud environment and “many are considering or have begun implementing an increasing number of mission critical workloads in the cloud.”

Kapoor says, however, that despite  the  benefits of cloud, many IT departments are still reluctant to move  to the cloud, with common barriers to adoption including perceived loss of control, data sovereignty and security concerns when they move their workload and infrastructure to cloud.  

“This  concern is more common for public cloud solutions and is one of the key reasons why many of the public cloud deployments in Australia are predominantly non-mission critical in nature.”

Frost & Sullivan reports that the pure play IaaS vendors primarily global players and first movers such as AWS (Amazon Web Services) and Rackspace, and recent entrants in the local IaaS  market  such as OrionVM, Cloud Central, Zetta Grid and UltraServe, are witnessing good success in the Australia IaaS Market.

“Telecommunications  providers  are actively moving into the cloud space and have  a  strategic  advantage  as  they  may  leverage their strong network capabilities  through  their  underlying network, and can offer private and public  cloud  offerings  bundled  with carriage, said Phil Harpur, Frost & Sullivan’s Senior Research Manager, Australia & New Zealand.

According to Harpur, Telstra, Optus, Macquarie Telecom and AAPT have already embarked on cloud offerings as part of their strategic direction.

“A fast growing category is the Managed Service Providers (MSP’s) in the IaaS space.  Dimension Data, IBM, Fujitsu, HP, and local providers such as Brennan  IT, Harbour IT and Melbourne IT are all expanding offerings in the cloud computing.”

Harpur says that vendors in the IaaS market with a local data centre presence will have an edge over other players, “hence we are witnessing many of the local IaaS players starting to establish, or expand their local data presence in Australia.”

Frost & Sullivan cites one of the key benefits of using cloud-based IaaS solutions as the significant upfront savings that can be achieved, in terms of hardware and also associated maintenance costs, with the cloud model eliminating much upfront capital outlay.

“Infrastructure as a Service (IaaS) is rapidly becoming the delivery model of choice for companies looking at greenfield, test and development type of deployments or hosting applications in the cloud,” says Harpur.

“With such low barriers to entry, the commercial case for any business of any size to adopt IaaS solutions is strong.”


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Peter Dinham

Peter Dinham - retired in 2020. He is a 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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