Cloud has become a norm in our region and is a technology that all businesses should have already adopted in their companies, according to Amazon Web Services Australia technology partner lead, Nigel Watson.
Speaking at the recent Splunk Live! 2015 event in Sydney, Watson claimed the Cloud industry is in transition – quoting an IDC finding that stated the size of the global Cloud market in 2013 was $US76 billion. In 2014, the size of the market grew to be $US96 billion, and is expected to grow to $US110 billion by the end of 2015. By 2018, he said it is expected to grow to $US200 billion.
“If you look at those numbers and do the math, it works out to be a compound annual growth rate of about 20 per cent. What’s really interesting about it is that the traditional IT market grows by about five per cent. So Cloud is the place you want to be,” he mentioned.
According to Watson, SaaS is what’s driving this behaviour. SaaS models where customers are requiring business functionality with no infrastructure footprint is what’s driving the growth.
“And this is what we’re noticing too. Over the past nine years that AWS has been in operation, we’re seeing customers from every industry, of every size and segment adopting the Cloud,” he said.
Also, he indicated that new innovations are beginning to driving changes in the Cloud.
“New players can disrupt industries so enterprises must start thinking like start-ups if they want to remain relevant in this industry because start-ups experiment with data differently from established businesses,” Watson stated.
Watson also addressed one of the key motives for moving to the Cloud – businesses can bring it up when they need it, or switch it off when they don’t. “And the thing about Cloud, is that when you switch it off, because it’s based on a consumption model, you stop paying for it.”
The other reasons he mentioned were security and compliance. As such, Watson added that the channel is key when it comes to supporting businesses in the Cloud.
“Customers don’t wake up in the morning and decide on technologies they need to fix, instead, they think about solving business problems for their customers. It’s about the business, not necessarily about the infrastructure and technology partners provide this capability.”