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Australia's Infrastructure as A Service IaaS Market to Reach $380 Million by 2017 Finds Frost & Sullivan - Key benefits driving IaaS adoption: reduced CapEx, better scalability of IT resources, independence, lower risk and mobility
Australia's Infrastructure as A Service IaaS Market to Reach $380 Million by 2017 Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Sydney, Australia, 2013/12/05 - Key benefits driving IaaS adoption: reduced CapEx, better scalability of IT resources, independence, lower risk and mobility.

   
 
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Infrastructure as a Service (IaaS) is growing rapidly as organisations gain more confidence in the reliability and security of the cloud delivery model and realise the benefits of outsourcing their IT infrastructure such as storage, servers and networking components to specialist vendors who provide access to these resources over the cloud on an as-needed basis.

IaaS can be used to host a variety of systems including corporate applications, websites and virtual data centres. The benefits IaaS offers include significantly reduced capital expenditure (CapEx), quicker and easier scalability of IT resources, location independence and lower risks of system failure associated with on-premise resources.

Frost & Sullivan's latest report, Australian Infrastructure as a Service Market (IaaS) 2013, outlines the main drivers stimulating IaaS adoption as reduction of IT capital expenditure (CapEX), the greater agility and scalability IaaS offers in changing infrastructure requirements, higher levels of awareness of the benefits of IaaS, an increasing need for mobility amongst corporate employees requiring access to corporate resources from any internet-enabled location and public cloud infrastructure improvements such as the National Broadband Network (NBN).

As the benefits and reliability of the cloud delivery model for infrastructure are better understood, concerns about sovereignty and security of data held in the cloud, the reliability and security of access to infrastructure delivered over the cloud and general management conservatism over migrating business functions to the cloud are eroding.

Frost & Sullivan estimates that IaaS vendors in Australia earned revenues of just under $65 million in 2012. Phil Harpur, Senior Research Manager, Australia & New Zealand ICT Practice, Frost & Sullivan says,"Although the IaaS market is considerably smaller and much more nascent in comparison to the SaaS market, Frost & Sullivan forecasts that IaaS expenditure will grow at an compound annual growth rate (CAGR) of almost 43% to reach $380 million by 2017, as an increasing number of clients switch to the IaaS provisioning model, and many more vendors enter the local market."

Mayank Kapoor, Industry Analyst, Datacenter and Cloud Computing, APAC ICT Practice, Frost & Sullivan says that IaaS vendors in Australia are categorised into four main groups.

Pure play IaaS cloud providers, which include Amazon Web Services (AWS), Google and Rackspace typically offer public IaaS service as core service, although an increasing number are offering private, virtual private and hybrid offerings as well. Carrier cloud players on the other hand are essentially telcos offering cloud based solutions. They leverage their strong network capabilities. Examples include Macquarie Telecom, Optus, and Telstra

The third group, traditional managed service providers, provides cloud-based services, and usually private cloud offerings, although an increasing number are also offering hybrid and public cloud deployments. Services range from cloud brokering and best of breed solutions to actual hosting and deployment. This is a rapidly growing segment. Examples include Brennan IT, Fujitsu, Harbour MSP, HP and IBM. The final group of resellers and channels partners re-sell or white-label some of the first three categories providers' offerings.

As growth of cloud computing threatens traditional revenue streams from on-premise system integration and maintenance services, many of the large integrators and channel partners are now developing cloud services. "Managed service providers and system integrators are adapting to the emergence of IaaS and have the advantage of being able to offer end-to-end IT services and support, and customising private cloud solutions in the Australia market. Examples of managed service providers and system integrators that are building or expanding their cloud services portfolio include Brennan IT, Dimension Data, HP, Fujitsu and IBM," Kapoor added.

Frost & Sullivan's Australian Infrastructure as a Service (IaaS) Report 2013 report forms a part of the Frost & Sullivan Australian Cloud Computing Research program. All research services included in this subscription provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies? Contact us: Start the discussion.

 
 
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Australia's Infrastructure as A Service IaaS Market to Reach $380 Million by 2017 Finds Frost & Sullivan

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