Australian IaaS spending to double to AUD 2 billion by 2024

Tuesday 30 June 2020 | 11:54 CET | News
Australian organisations spent AUD 907 million on infrastructure-as-a-service (IaaS) in 2019, and the figure will hit AUD 2 billion by 2024, according to new research from Telsyte. The total market is forecast to exceed AUD 1 billion in 2020, representing a year-on-year increase of 23 percent.

The report found the big six global hyperscale providers dominate the Australian cloud market with a combined AUD 740 million in IaaS revenue in 2019, or 82 percent of the market. The top six hyperscale clouds in Australia were AWS, Azure, IBM, Google, Oracle and Alibaba Cloud, with AWS and Azure leading the pack. The hyperscale cloud providers combined are to generate AUD 1.7 billion in IaaS revenue by 2024, or around 85 percent of the total market.

The study also found that nearly 45 percent of organisations are looking to increase cloud infrastructure spending in 2020. ‘Cloud first’ policies are currently used by more than 59 percent of Australian business, compared to nearly half (46%) prior to the COVID-19 lockdown, as organisations seek to be more agile and resilient in the backdrop of the pandemic.

The report shows that around 75 percent of organisations are using multiple cloud platforms. On average, Australian organisations have four different cloud providers (up from 3.8 in 2019), which is typically a combination of hyperscale, managed service provider, hosted and on-premises, particularly in larger enterprise. Businesses without a “organisation-wide” digital strategy are most likely to have four or more cloud platforms.

The report also indicates that Australian businesses’ continued shift to cloud is generating opportunities for mobile services providers, telecom operators and other third parties to fill the skills gap. Nearly one in four (24%) use a third-party to manage cloud services and a further 31 percent claim to intend to in 2020, making it a booming third-party services market.

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Categories: Internet / IT
Companies: Alibaba / IBM / Oracle
Countries: Australia
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