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Need for more Australian specialist Cloud providers: CIO study

Two-thirds of Australian enterprises buying services from global companies due to lack of Australian specialist Cloud providers reveals study

With Australian CIOs looking overseas for Cloud services, the need for more Australian specialist infrastructure and platform-as-a-service providers presents opportunities for the local Cloud service market, according to a new study from analyst firm, Telsyte.

The Australian Infrastructure and Cloud Computing Market Study 2012 surveyed 260 CIOs and found that two-thirds of enterprises are buying infrastructure-as-a-service (IaaS) or platform-as-a-service (PaaS) from a Cloud service provider based offshore.

In-depth: Legal issues in the Cloud.

Telsyte senior analyst, Rodney Gedda, said that for many CIOs the advent of on-demand Cloud computing services has provided an option for service delivery without the need to manage physical infrastructure.

“About 35 per cent of Australian enterprises are subscribing to some type of IaaS or PaaS Cloud service, with the majority of subscriptions, and data, heading to overseas providers,” he said in a statement.

He added that 36 per cent of enterprises have no restrictions on data being sent offshore, creating an opportunity for global Cloud providers to compete with local operators.

“However, a significant 29 per cent of CIOs say their organisation’s data cannot leave Australia,” he said in a statement.

According to Telsyte, development and investment in on-premise infrastructure and private Clouds is still strong with many unable to rely on public Cloud services for a number of reasons, including data location restrictions.

“With more than 50 per cent of Australian enterprises using server virtualization technology, the interest in private Clouds is also strong with 19 per cent of organisations building a private Cloud and a further 35 per cent considering a private Cloud,” Gedda said in a statement.

The study also found that some companies were using public Cloud, albeit for testing of server and storage environments through to development, testing and deployment of applications.

Follow Hamish Barwick on Twitter: @HamishBarwick

Follow CIO Australia on Twitter: @CIO_Australia

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: Telsyte
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Comments

Roy - Infraserve

1

I find it strange that CIO's feel that more specialist providers are needed out there. According to the recent Longhaus pulse survey we have over 170 cloud providers of which there are 45 decent providers that Australian CIOs can choose from.

Is it that they are not looking hard enough or are they just not wanting to recognize that there are players like us who have made significant investments in proper cloud infrastructure to provide local cloud services to corporate Australia?

In addition as a provider of IaaS to cloud providers we are finding offshore cloud providers starting to invest with us to provide their services locally.

So if you are looking for local providers, give us a call we have a bunch of cloud partners ready to serve the Australian market.

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