Cloud services have quickly become a mainstream way of delivering IT infrastructure in Australia, according to new research from Telsyte.

The research house found Australian enterprises are boosting their usage and increasing their spending on public cloud Infrastructure-as-a-Service (IaaS). The Australian IaaS market is on track to grow by over 60 per cent reaching $621 million in 2016 and forecast to reach $1 billion by 2020.

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More than half of CIOs surveyed by Telsyte are planning to invest more in IaaS in the next 12 months. Fewer than 10 per cent of organisations with greater than 20 staff are not using any form of IaaS.

Big data analytics, storage, IoT, artificial intelligence and process digitisation are all driving the demand for cloud services as enterprises work towards modernising legacy systems and deploying new workloads.

Cloud maturity

The Telsyte Australian Infrastructure & Cloud Computing Market Study 2017 debuts Telsyte’s cloud computing maturity model for the Australian enterprise market which segments companies by six levels of maturity. The maturity model shows cloud is currently favoured for testing and development as ICT priorities change. Only 30 per cent of organisations are in the top two most mature levels.

“The use of cloud aligns well with Australian enterprise ICT and business priorities; however, we still have some way to go before most organisations are using cloud to its full potential,” said Rodney Gedda, Telsyte senior analyst.

More than a third (34 per cent) of Australian enterprises now have a “cloud first” policy which is outweighing restrictions on cloud use, further driving uptake. “As more global providers have extended their infrastructure to Australia, the data residency arguments for not using cloud have waned,” Gedda said.

According to Telsyte research, selective cloud use is favoured by Australian CIOs over blanket off-premises adoption as applications like content management, backups, DR and software development are moved to pure clouds and managed service providers.

In addition to the growing appetite for public cloud services, Australian CIOs are investing in private cloud technology to enable more rapid service delivery. According to Telsyte, 78 per cent of enterprises building or planning to build a private cloud.

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