Australian IaaS Cloud Market Is Set To Reach $1 Billion By 2020

More than half of Australian CIOs are planning to invest more in public cloud infrastructure-as-a-service (IaaS) in the next 12 month. This will contribute to a 60% growth in the IaaS business locally, reaching $621 million by the end of the year, according to new research.

IT analyst firm Telsyte projects that the Australian IaaS market will be worth $1.049 billion by 2020. More than half of the CIOs surveyed said their organisation will be investing more in IaaS in the next 12 months as ICT priorities change. IT infrastructure management has become a top ICT priority for local CIOs in the past 12 months, matching IT Security for the first time.

Nearly all organisations are using some form of IaaS – less than 10% of organisations with more than 20 staff are holding out.

But that doesn’t mean companies have shunned private cloud. Far from it. Around 78% of enterprises are either building or planning to build a private cloud. All roads lead to hybrid cloud models becoming the norm in the future.

“There are many applications where it still makes business sense to deploy on private infrastructure, but having the agility to pick and choose the right cloud service for any application is the big promise of hybrid cloud,” Telsyte senior analyst Rodney Gedda said. But he noted that it will still be some time before organisations use cloud to its fullest potential.

According to Telsyte research, selective cloud use is favoured by Australian CIOs over full-blown adoption. Many organisations are moving applications like content management, backups, DR and software development to pure clouds and managed service providers.

The Telsyte research also showed that containers like Docker are becoming increasingly popular with 70% of enterprises either using them or looking into the technology. Containers allow applications to be more portable across on-premises, managed service providers or pure cloud infrastructure.

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