A/NZ companies eye cloud for business growth: survey

Ninety per cent of respondents say the flexibility to scale IT capacity up or down is important

About two thirds of Australian and New Zealand companies are interested in using public and private cloud services to aid cost effective business growth, according to the results of an IDG Connect/ EMC survey.

Conducted with 100 firms in A/NZ during October and November 2014., the survey found that 68 per cent of respondents would use external/public cloud services, while 67 per cent said they would use internal private cloud services that are managed by their IT department.

In addition, 90 per cent of businesses surveyed said the flexibility to scale IT capacity up or down to match business requirements is important. This is because they expect the cloud to be a productivity tool and a driver of cost effective business growth.

Leasing public cloud services was a priority for A/NZ companies, with 44 per cent of companies surveyed planning to invest in public cloud in the next 12 months. Meanwhile, 41 per cent said they would spend money implementing internal private cloud solutions in the next year.

However, the survey also revealed some concerns about the adoption/expansion for cloud services.

For example, 72 per cent of those surveyed said they were worried about maintaining control of the placement of workloads. Security, data protection and availability is a concern for 71 per cent of respondents.

According to the survey, 30 per cent of the 100 respondents work in the insurance and finance sectors, which have strict data security and privacy regulations.

IDG Connect’s survey follows a forecast by Gartner that the public cloud services market in Australia will hit $4.15 billion in 2015.

The figure represents almost 24 per cent year-on-year growth compared to 2014, according to the latest figures from Gartner. In 2016, the Australian public cloud services market is forecast to be worth $4.74 billion.

The growth in the Australian public cloud services market will outstrip the other countries in what Gartner describes as the 'mature' Asia/Pacific and Japan region (Australia, Japan, New Zealand, Singapore and South Korea).

Follow Hamish Barwick on Twitter: @HamishBarwick

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