Cloud has a silver lining: uptake soaring says Telsyte

Cloud Computing News

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Market research firm Telsyte estimates that the market for public cloud infrastructure services in Australia will more than double in the next four years to $650 million in 2018, up from $305 million in 2014.

The research firm says that uptake of cloud computing within Australian enterprises is skyrocketing with twice as many enterprises adopting Infrastructure-as-a-Service (IaaS) in 2013 over the previous year. “More than half of all organisations greater than 20 employees are now using public cloud IaaS for at least some part of their IT infrastructure,” Telsyte says.

Telsyte’s findings come from the latest edition of its annual Australian Infrastructure & Cloud Computing Market Study. Its market size forecast is only for IaaS services. The whole ‘as-a-service’ market is much bigger. In mid 2013 IDC estimated the total Australia public cloud services (SaaS, PaaS and IaaS) to grow from $884.4 million in 2012 to $2.7 billion in 2017.

Telsyte says that, as the cloud delivery model is now mainstream for IT infrastructure, more CIOs are moving workloads to public providers. Telsyte’s research also identified a growing uptake of hybrid cloud. Telsyte estimates some 30 percent of enterprises will be using hybrid cloud by 2018.

Telsyte senior analyst, Rodney Gedda, said:  “Many cloud investments are being done in parallel with existing on-premise infrastructure spending and as the market matures the hybrid approach will be more strategic for CIOs.”

He added: “The hybrid cloud architecture, and dealing with multiple cloud service providers, both present opportunities for more automation and process improvement.”

Telsyte says the growth in cloud spending does not spell the end for on-premise IT. It says many organisations are using virtualisation technology to implement a cloud architecture that the can control. “There is now a healthy range of private cloud management options available to organisations looking to replicate the scalability and manageability of public clouds with their own servers,” Gedda said.

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