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ANZ businesses prefer hybrid cloud

Companies in Australia and New Zealand are embracing public cloud, but many still prefer a hybrid IT setup

Australia and New Zealand (ANZ) businesses are using public cloud services, but many still prefer a hybrid cloud environment over a single public or private cloud, according to a report published by Information Services Group (ISG).

In addition, they are adopting a multi-cloud strategy by using several cloud providers for different services. Most managed service providers (MSPs) in ANZ are also acting as “cloud brokers”, helping enterprises navigate various cloud options and migrate existing workloads to multiple cloud environments, ISG said.

“Almost all service providers have developed their own version of a platform that offers a one-stop shop for rapid, secure and efficient enterprise application cloud migration that supports multiple clouds,” said Lisa Borden, partner and head of ISG in ANZ.

However, compared to their US and UK counterparts, ANZ firms are slower to adopt public cloud services, ISG noted.

Private cloud use is also higher in ANZ than it is globally, with VMware and Microsoft among the favourite suppliers. Many ANZ businesses still need to be educated about the technology advances available through the cloud, according to ISG.

In August 2018, VMware took the wraps off its VMware Cloud on Amazon Web Services (AWS) in Australia in a widely anticipated move that is expected to raise the supplier’s standing among Australian enterprises operating in an increasingly hybrid cloud environment.

AWS executives had claimed that the service was more cost-effective than other hybrid cloud offerings, with further savings if enterprises took up one-year or three-year subscriptions, with savings of 30% and 50%, respectively.

Read more about cloud in ANZ

In the public sector, restrictive policies by the Australian government have limited the number of cloud vendors that store classified government data, but ISG sees greater opportunities for public agencies to adopt cloud solutions as more suppliers with unique offerings enter the market.

Microsoft currently operates two regions for Azure cloud services in Australia that handle protected and unclassified government data. The services are being delivered through datacentres operated by Australian-owned Canberra Data Centres.

When it comes to DevOps, businesses in ANZ have not made it a priority when developing applications thus far – even as Australia’s DevOps market is warming up.

Read more on Cloud computing services

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