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Cloud computing used by 86% of Australian firms

Posted: 18 Jul 2013 ?? ?Print Version ?Bookmark and Share

Keywords:IDC? cloud computing? service provider? software as a service?

IDC has announced that 86 per cent of Australian enterprises are using cloud computing, up from 71 per cent in 2012. The market analytics firm added that line-of-business (LOB) managers in leading-edge enterprises had begun to add to CIO's cloud spending by direct acquisition of cloud services as a delivery mechanism for new competitive offerings within their own industries and marketplaces. This was confirmed by the survey results where the business unit (69.6 per cent) was ranked higher than the IT department (59.8 per cent) by the respondents when it came to the responsibility for selection of the service providers in their most recent cloud computing projects.

"Until 2012, cloud was primarily an IT label for IT infrastructure services delivered as a service. 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 now business as usual for CIOs, IT managers and LOB managers. By 2015, cloud will be just another delivery model for a range of "as-a-service" offerings that are based on infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS)," noted Raj Mudaliar, senior analyst, cloud services research, IDC Australia.

In 2011-2012, there was a swing away from on-premises private cloud to 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; however the truly mission-critical applications like ERP will most often be deployed on dedicated private cloud (single tenant hosted from service provider's data centre).

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. It is expected that services component will increase as larger and more complex projects get underway.

IDC forecasted the total Australia public cloud services (which includes SaaS, PaaS and IaaS) to grow from A$884.4 million in 2012 to A$2,671.9 million in 2017, at a CAGR of 24.7 per cent for the 5-year forecast period of 2013-2017.

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