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September 11, 2012

Infrastructure as a Service to See Brisk Growth in Australia, According to Frost & Sullivan

Infrastructure-as-a-Service (IaaS) is a growing model Down Under, according to Frost & Sullivan's (News - Alert) latest report, “Australian Infrastructure as a Service Market (IaaS),” which was published this month. Growth is expected to be very brisk, with a CAGR of almost 50 percent until 2018. According to the report, many Australian organizations of all sizes are finding multiple reasons to embrace the model, beyond simply the initial cost savings.

Adoptions of cloud-based solutions are also speeding up because companies are recognizing the increased agility and scalability that the cloud can offer them. As a result, the IaaS model is seeing an influx of market participants in Australia as telecommunications providers, traditional IT companies and pure-play cloud vendors accommodate their needs with various cloud solutions.

"Most of the large organizations in Australia have now deployed a private cloud environment and many are considering or have begun implementing an increasing number of mission critical workloads in the cloud," said Mayank Kapoor, industry analyst, Datacenter and Cloud Computing, APAC ICT Practice for Frost & Sullivan in a release this week.

Not every is there yet, however. Despite the benefits of cloud, many IT departments are still reluctant to move to the cloud, often citing concerns about data security and a perceived lack of control over data with the IaaS model. This concern is more common for public cloud solutions and is one of the key reasons why many of the public cloud deployments in Australia are predominantly non-mission critical in nature, according to the report.

So who are the new players in the Australian cloud? The usual suspects such as AWS (Amazon Web Services) and Rackspace (News - Alert) are present and accounted for, as well as more recent entrants in the local IaaS market such as OrionVM, Cloud Central, Zetta Grid and UltraServe are seeing rising interest in their services.

"Telecommunications providers are actively moving into the cloud space and have a strategic advantage as they may leverage their strong network capabilities through their underlying network, and can offer private and public cloud offerings bundled with carriage,” said Phil Harpur, Senior Research Manager, Australia & New Zealand for Frost & Sullivan. “Telstra, Optus, Macquarie Telecom (News - Alert) and AAPT have already embarked on cloud offerings as part of their strategic direction. A fast growing category is the Managed Service Providers (MSPs) in the IaaS space. Dimension Data (News - Alert), IBM, Fujitsu, HP, and local providers such as Brennan IT, Harbour IT and Melbourne IT are all expanding offerings in the cloud computing,” Harpur stated.

Frost & Sullivan concludes that Australian vendors in the IaaS market with a local data center presence will have an edge over other players.

Want to learn more about cloud communications? Then be sure to attend Cloud Communications Expo, collocated with ITEXPO West 2012 taking place Oct 2-5, in Austin, TX.  Stay in touch with everything happening at Cloud Communications Expo. Follow us on Twitter.

Edited by Rachel Ramsey


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