telsyte australian cloud computing market update 2015 · 2016-02-17 · telsyte australian cloud...
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Telsyte Australian Cloud Computing Market Update 2015
Prepared for Logicalis Australia, September 2015
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Executive summary
20%OF ICT BUDGETS ARE SPENT ON CLOUD INFRASTRUCTURE AND APPLICATIONS
Telsyte Australian Infrastructure & Cloud Computing Market Study 2015
DISRUPTION: AUSTRALIAN ENTERPRISES ARE CHANGING
TWO-THIRDS
OF ICT BUDGETS ARE SPENT ON OPEXRATHER THAN CAPEX WITH THE FUTURE LOOKING MORE AS-A-SERVICE
CLOUD IaaS TOBE IN USE BYOF AUSTRALIAN ENTERPRISES BY 2019
CLOUD-BASED POINT SOLUTIONS
NOW A TOP 3
DRIVER FORBUSINESS UNIT IT SPENDING
CLOUD IaaS SPENDING WILLREACH $775M BY 2019, UP FROM $366MTHIS YEAR
NEARLY
85%
40% OF SERVER & STORAGE EQUIPMENT STILL IN OFFICE SERVER ROOMS
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Use of Cloud aligned with key themes to transforming and improving business operations
Revenue growth
Operational cost savings
Capital investment
Customer acquisition and retention
Sustaining or improving profit margins
2012Operational cost savings
Productivity
Revenue growth
Business process improvement
Sustaining or improving profit margin
2013Operational cost savings
Revenue growth
Business process improvement
Productivity
Improving customer experience
2014
Q: What best describes your top business priorities for FY2015?
• The top priority for organisations is improving profitability by driving top line revenue growth and realising bottom line cost savings.
• In helping to realise cost savings, decision makers are looking to transform organisations to be more productive and efficient. Insights from data play an important role in streamlining business processes and providing tools for workers to be more productive. The key themes for many organisations are cost savings through greater use of data and automation.
• Improving customer experience has been identified as a top driver for cloud computing, with decision makers recognising its impact of the insights it yields on both the top and bottom line (i.e. customer acquisition, management, and retention).
Source: Telsyte Australian Digital Workplace Study 2015 ; n=424
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IT decision makers looking to increase spending on cloud services
Source: Telsyte Australian Digital Workplace Study 2015 ; n=424
19%20%20%21%23%23%25%25%26%26%26%27%27%27%29%30%30%
31%35%36%37%
44%
63%62%68%
60%59%
64%58%
59%53%
55%57%62%
53%59%
57%53%59%
53%52%
49%52%
40%
17%11%11%
17%17%
10%15%
11%15%12%10%9%
18%10%
13%10%10%9%9%8%9%9%
On-premises server infrastructureCustomer service/Contact centres
Microsoft OfficeFixed-line voice/data services
On-premises storage infrastructureERP, finance, HR software
On prem network & commsSystem integrator project work
External IT consultingManaged services/outsourcingSoftware development/PaaS
Mobile voice/data servicesInternal IT staff
Application Management ServicesOn-premises software licensesCRM & marketing automation
PCs/NotebooksCloud UC and telephony
Mobile devices (media tablets)Software as a service (SaaS)Mobile devices (smartphones)
Cloud computing/IaaS/hosting
Change in spending across technology area 2014-2015
Increase Keep the same Decrease
Big Movers up in 2015
Mobile devices (smartphones)
Software as a Service
PCs & notebooks
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OPEX spending higher than CAPEX, organisations more likely to have an OPEX-driven future
OPEX66%
CAPEX34%
Q: What percentage of your organisation's total annual ICT budget is spent on…
• Telsyte expects the ratio to shift towards OPEX as more suppliers move to “as-a-service” delivery models.
• However, if the transformation and innovation spend level is sustained, Telsyte believes it will be the underlying driver of a hybrid architecture in the medium term in large organisations. In addition, many IT decision makers continue to exhibit preference for outright purchase and ownership of technology. Telsyte has seen this trend in growth areas such as the Internet of things investments, which start on-premises but burst into the cloud as the workload demand increases rapidly.
Source: Telsyte Australian Digital Workplace Study 2015 ; n=424
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Security, reliability, DR top cloud decision making
72%72%72%73%
73%73%74%74%
74%75%75%75%75%75%
76%78%
79%81%
Existing assetsAvoiding DC provider lock-in
Billing simplicityAPI quality
Existing softwareFlexibility
Infrastructure management skillsManagement interface
ScalabilityData/Infrastructure location control
Network bandwidthSLA quality
Ease of doing business withSupport quality
CostDisaster recovery ability
ReliabilitySecurity
Q: How do you rate the following factors when choosing a third-party infrastructure hosting provider (managed or cloud)?
Telsyte Australian Infrastructure & Cloud Computing Market Study 2015 ; n= 165; base: orgs with IT service infrastructure operating in third-part data centres and/or public clouds (subscription model)
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Nearly two-thirds spend $1K-$20K on IaaS per month
Telsyte Australian Infrastructure & Cloud Computing Market Study 2015 ; n= 137 ; base: organisations using public cloud services for storage and servers
Less than $1,00011%
$1,000 to $4,99922%
$5,000 to $9,99920%
$10,000 to $19,999
22%
$20,000 to $49,999
14%
$50,000 to $99,999
6%
$100,000 or more5%
Q: How much does your organisation spend on public cloud infrastructure services each month?
• Organisations surveyed spend on average $40K per month on public cloud IaaS.
Top cloud spenders by industry
Industry sectorMean monthlyexpenditure
Government (n=7) $102,000
Construction (n=8) $88,000
Transport (n=12) $76,000
Real estate (n=14) $67,000
20 to 199 200 to 1999 2000+
Monthlyspend $31,000 $20,000 $98,000
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Poor performance bugbear for public clouds
9%
14%
14%
18%
23%
27%
27%
27%
32%
Security concerns following incidents
More powerful public clouds reduces need for more services
Cloud services more expensive than on-premise
Cloud services not flexible enough
Bandwidth speed/costs make cloud unviable
Privacy concerns following government surveillance revelations
Cloud service not reliable enough
Too much reliance on network
Not happy with performance of cloud services
Q: Why are you reducing public cloud spending/use at your organisation?
Telsyte Australian Infrastructure & Cloud Computing Market Study 2015 ; n= 22 ; base: organisations reducing cloud spending (multiple selection allowed)
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Orgs favouring managed cloud providers
Telsyte Australian Infrastructure & Cloud Computing Market Study 2015 ; n= 137 ; base: organisations using public cloud services
A managed service public cloud provider
42%
A transactional public cloud
provider32%
Both managed service and transactional
cloud providers
26%
Q: Which type of public cloud providers does your organisation procure infrastructure as a service
(IaaS) from?
44%
45%
40%
41%
42%
43%
44%
45%
46%
47%
48%
49%
50%
A managed service cloud (n=57) A transactional cloud (n=44)
Growth in spending by type of public cloud use
‘Managed service’ was 37% of organisations in 2013 (n=175)
‘Both managed service and transactional’ was 30% of organisations in 2013 (n=175)
Growth for managed service clouds was 49% in 2013 (n=65)
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Cloud concerns centre on security, data location
11%
12%
12%
13%
13%
14%
14%
16%
16%
18%
18%
19%
20%
20%
27%
Cloud services not flexible enough
Cloud services are more expensive
We don't have the required cloud skills
Complex billing
Organisation culture
Organisation data management policies
Poor performance of cloud services
Cloud service not reliable enough
Privacy concerns following government surveillance revelations
Too much reliance on network
Data and application sovereignty
Legal requirements
Bandwidth speed/costs
Data location concerns (hosted off-shore)
Security concerns following incidents
Q: Which of the following concerns does your organisation have of public infrastructure as a service (IaaS) cloud services?
Telsyte Australian Infrastructure & Cloud Computing Market Study 2015 ; n= 245 (multiple selection allowed)
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Cloud forcing change to IT staff roles
No impact IT staff numbers will stay
the same32%
IT staff numbers will increase
15%IT staff numbers will decrease
16%
IT staff numbers will stay the
same, but their IT role will change
23%
IT staff may be redeployed to
non-IT roles14%
Q: How is any move to cloud computing likely to impact internal IT support staff?
Telsyte Australian Infrastructure & Cloud Computing Market Study 2015 ; n= 245
• The gap between organisations decreasing and increasing staff due to cloud has narrowed in 2014.
• Both the rate of change within the IT department and within other areas of the business have increased during the past 12 months and nearly one in four CIOs now predict changing roles within the IT department.
• Telsyte research indicates staff reductions will be more dramatic in the 2000+ employee company size which have “fatter” IT infrastructure operations.
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Rodney GeddaSenior Analyst
Level 20, 135 King StSydney, NSW 2000
Tel: +61 2 9235 [email protected]
David ArbisAssociate Analyst
Tel: +61 2 9235 [email protected]
Foad FadaghiManaging Director
Tel: +61 2 9235 [email protected]
TELSYTE HEAD OFFICE (HSBC TOWER) LEVEL 29, 580 GEORGE ST, SYDNEY