A recent report by Frost & Sullivan has discovered that Australia continues to lead the adoption of cloud computing in Asia-Pacific.
The report, State of Cloud Computing in Australia: 2011, found that cloud computing is now used in some form at 43 per cent of enterprises.
Cloud computing was also chosen as the top priority for 41 per cent of IT decision makers in the current fiscal year.
“There has been a significant increase in the use of cloud services in Australia in the past 12 months,” Frost & Sullivan Research Director of ICT Practice, Arun Chandrasekaran, said, “and all the indications are that this will continue.”
Increased business flexibility and the ability to deliver IT on-demand were found to be key reasons for adoption of cloud services, as well as the potential to reduce to capital and operational expenditure.
Hybrid clouds are expected to remain the dominant deployment model in the near term thanks to its flexibility in the areas of cost, security, reliability and service level agreements, with 22% of Australian enterprises and more than 50% of current cloud users adopting hybrid clouds.
In addition to examining the current state of the market in the study, Frost & Sullivan also made some predictions for the year ahead.
Enterprises are expected to remain cautious and perform risk-benefit analysis before deciding what type of workloads will be moved to the cloud, while spending on private clouds will be driven by server virtualisation and network security.
Cloud-related decisions will continue to be mainly influenced by IT departments.
Spending for cloud services is anticipated to increase, though in a measured manner due to remaining concerns over potential hidden costs and downtime.