Thursday, 02 August 2018 10:57

IaaS adoption climbs to new highs in Australia, worldwide

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IaaS adoption climbs to new highs in Australia, worldwide Image courtesy of fantasista at FreeDigitalPhotos.net

The Infrastructure as a Service (IaaS) market in Australia is booming, growing significantly in one year to reach A$393 million, according to a new report which says global IaaS market growth is partly driven by the cloud availability of IaaS in new regions and countries.

The new report from Gartner reveals the IaaS market in Australia was up by 32.5% in 2017 over 2016 - and while the Australian market grew so did the IaaS worldwide market, which jumped up 29.5% in 2017 to total US$23.5 billion, up from US$18.2 billion in 2016.

And Gartner reports that Amazon was the number 1 vendor in the IaaS market in 2017, followed by Microsoft, Alibaba, Google and IBM.

"The top four providers have strong IaaS offerings and saw healthy growth as IaaS adoption is being fully embraced by mainstream organisations and as cloud availability expands into new regions and countries," said Sid Nag, research director at Gartner.

"Cloud-directed IT spending now constitutes more than 20 percent of the total IT budget for organisations using cloud. Many of these organisations are now using cloud to support production environments and business-critical operations."

gartner table peter3

According to Gartner, in the IaaS market, the competitive landscape is consolidating around the leaders.

Gartner says the top four providers — Amazon, Microsoft, Alibaba and Google — are all hyperscale IaaS providers and represent approximately 73% of the total IaaS market and 47% of the combined IaaS and infrastructure utility services (IUS) market.

The Gartner report reveals that Amazon is the clear leader in the worldwide IaaS market with an estimated US$12.2 billion revenue in 2017, up 25% from 2016.

And Gartner says Amazon is also the most mature, enterprise-ready IaaS provider, with the strongest track record of customer success and the most useful partner ecosystem.

“Growth in 2017 was driven not only by customers that are migrating from traditional data centres to cloud IaaS, but also by customers implementing transformational digital business projects, reflecting its broad range of use cases,” Gartner says.

Microsoft’s No. 2 position in the market was achieved with growth of more than 98% on its IaaS offering, with revenue surpassing US$3.1 billion in 2017.

Microsoft delivers its IaaS capabilities through its Azure offering, which is a collection of infrastructure and platform services.

In the third spot, Alibaba's 2017 growth of 63% reflects the company's successful investment in research and development (R&D), according to the Gartner report.

Gartner notes that Alibaba has the financial capability to continue this trend and invest in global expansion, giving the company potential to become over time an alternative to the global hyperscale cloud providers in select regions.

"This reflects a fundamental change in what and how organisations are consuming technology. Some legacy infrastructure offerings, such as IUS, are seeing lower and slower uptake that impacts the combined IaaS and IUS market," Nag said.

"Additionally, a groundswell of demand for cloud-skilled personnel is forcing technology providers to change how they compete to meet this exploding demand."

Table: courtesy Gartner


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Peter Dinham

Peter Dinham - retired and is a "volunteer" writer for iTWire. 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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