The Australian Cloud enterprise market is set to reach $800 million by 2019 as organisations move more business critical server, storage and network workloads off-premises, according to a research firm.
According to a new study conducted by Telsyte, Infrastructure-as-a-Service is attracting the highest spending increase in 2015 as more than half of all organisations ( with 20 plus employees) are using public Cloud IaaS in some form.
The Telsyte Australian Infrastructure & Cloud Computing Market Study 2015 has forecast the total market value for public Cloud infrastructure services will reach $775 million by 2019, up from $366 million in 2015.
Telsyte defines Infrastructure-as-a-Service (IaaS) as cloud-based server, storage and network services, but not software applications (SaaS).
The research also identified a growing trend in the hybrid Cloud model, which will be in use by about 40 per cent of enterprises by 2019. A hybrid Cloud architecture involves some level of integration between private and public infrastructure and allows organisations more flexibility over where workloads are hosted.
Telsyte senior analyst, Rodney Gedda, said Cloud services presented a low entry barrier for IT infrastructure and organisation penetration was growing strongly, but this will result in a large gap in how on-demand and on-premises services are managed.
“Both the uptake and spending value of Cloud is increasing as more testing and production workloads, including virtual machine backups and disaster recovery, are being deployed off-premises,” Gedda said.
“The hybrid cloud architecture, and dealing with multiple cloud service providers, both present opportunities for more automation and process improvement.”
Some of the driving forces behind the adoption of Cloud services include traditional IT pressures and emerging technology. Cost reduction, time-to-market, scalability are ongoing traditional IT pressures CIOs face and this is being compounded by emerging workloads like big data analytics, Internet of Things and personal apps in the workplace.Read more: OCG Systems and Sumo Logic partner over Big Data and the Cloud
Gedda said the demand for cloud-based infrastructure will continue to be driven by emerging technology and the uptake and maturity of virtualisation and private Cloud use.
Cloud networking is also rising in prominence alongside server and storage IaaS with more than half of CIOs looking to adopt NaaS in the future.
The immediate opportunities for NaaS will lie in low-latency services like security and WAN optimisation with traffic management and datacentre networking set to follow as last-mile bandwidth improves.