Cloud takes more than 10 per cent of IT budgets in many companies: Frost

Cloud takes more than 10 per cent of IT budgets in many companies: Frost

Firm reveals 70 per cent looking to boost Cloud expenditures; private Cloud topping both public and hybrid

Seventy per cent of all Australian business using Cloud computing services are looking to boost their Cloud-based solutions budget significantly over the next 12 months, according to research firm, Frost and Sullivan.

Additionally, 53 per cent of companies who are currently utilising such services are spending over 10 per cent of their total IT budget on Cloud, while 31 per cent spend more than 20 per cent.

This comes as a result of business agility, increased standardisation of IT infrastructure, and the ability to lower overall IT costs through Cloud.

“Cloud-based solutions enable organisations to focus on other aspects of operations by freeing up key resources previously dedicated to other IT services,” Frost Asia-Pacific ICT practice datacentre and Cloud computing industry analyst, Mayank Kapoor, said.

“Providing the flexibility to meet business demand via real-time and on-demand computing also rates highly.”

Kapoor also said that most Australian organisations are now fully Cloud deployed rather than in pilot phase. Storage and computing solutions have had the highest rate of full deployment, with human resource management (HRM) and unified communications (UC) deploying slowest.

At the same time, with the exception of HRM, private Cloud deployments are more widespread than both public and hybrid Cloud deployments.

While software-as-a-service (SaaS) is the most commonly used deliver model in the Cloud, infrastructure-as-a-service (IaaS) has achieved a huge spurt in adoption in the past 12 to 24 months, Kapoor said.

The latter’s success can be attributed to participants such as Melbourne IT, Cloud Central, Ninefold, BitCloud, and Ultra Serve.

Kapoor further observed that telecommunications service providers Telstra and Optus have been aggressively positioned themselves in the Cloud space by offering IaaS, SaaS, and private Cloud solutions.

Managed service providers (MSPs) with local datacentres, such as Fujitsu, also have secured large contracts, particularly in the financial services and public sector verticals.

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