Strategic Analysis of Australia Infrastructure as a Service (IaaS) Market
Strategic Analysis of Australian Infrastructure as a Service (IaaS) MarketArun ChandrasekaranResearch DirectorICT Practice
Market DefinitionInfrastructure as a Service (IaaS) is a provision model in which an organization outsources the hardware usedto support business operations. The service provider owns the equipment and is responsible for housing, runningand maintaining it with the client typically paying on a per-use basis. Infrastructure as a Service Computing Storage Source: Frost & Sullivan 2
Market Definition (Cont’d.) Key Features of IaaS Pay as you use model – Services Typically hourly delivered over rates for the public compute and network $/GB for Storage No long-term Multi-tenant contract Infrastructure requirements Source: Frost & Sullivan 3
Infrastructure as a Service Market Highlights IaaS Market: Market Engineering Measurements (Australia)Measurement Name Measurement TrendMarket age Growth IncreasingRevenues (2010) US$27.5 million IncreasingPotential revenues (2017) US$466.5 million IncreasingCompound annual growth rate (2010-2017) 49.8% -Price sensitivity Medium IncreasingCompetitors (active market competitors in More than 10 Increasingbase year) Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan 5
Market Drivers / Restraints IaaS Market: Market Drivers Ranked in Order of Impact (Australia), 2011-2017Rank Drivers Impact 1 Shift from a CapEx to OpEx model – predictable monthly expenditure High 2 Rapid deployment – Agility High 3 Ease of use – web-enabled self provisioning model High 4 Eliminates time and resources dedicated to infrastructure maintenance and management Medium 5 Scalability allows enterprises to match infrastructure with dynamic business requirements Medium 6 Low barriers to entry and the lack of long term commitments Medium Source: Frost & Sullivan IaaS Market: Market Restraints Ranked in Order of Impact (Asia Pacific), 2011-2017Rank Restraints Impact 1 Privacy and security concerns High 2 Inability to track location of data in the Cloud High 3 Data Handling issues – Migration, Recovery, Archival Medium 4 High latency and reliability issues Medium Source: Frost & Sullivan 6
IaaS Use Cases Managed hostingTest and development customers switching toenvironments IaaSCloudbursting for BCP/DR in Cloudproduction environments (Storage)Computationally intensive Evolving IaaS Storage for Archiving /tasks that demand high Use Cases Compliancescalability Rich media storage forMobile app developers access to internet / public usersStart-up businesses looking foragile and scalable infrastructure One-off projectswithout CapEx (compute) 7
Australia Market Trends IaaS Market: Regional Highlights (Australia) • Australia is the largest IaaS market in Asia Pacific and is significantly ahead of other markets on the maturity curve. Mature Market • The high level of adoption is attributable to the high broadband penetration and awareness levels among enterprises. • Given that it is the largest and the most mature market in the region, it has witnessed theDeveloped Service entry of major global market participants.Provider Landscape • Further, there is a large number of local participants that have introduced their services in the market. This is driving a high level of market awareness. • Despite Australia being one of the early adopters of IaaS, the government vertical has shown significantly lower traction vis-à-vis the others. Government • This is primarily due to concerns around security, privacy and data location. Given that moreAdoption Continues and more local players are entering the market, this trend is expected to change in the future. to be Low • The government has already outlined a draft strategy – Whole of Government Approach to the Cloud – towards Cloud adoption in the near future. Lack of • The implementation of NBN in Australia is expected to bring about the required network Comprehensive enhancements in the next decadeBroadband Network 8
For Additional Information Donna Jeremiah Carrie Low Corporate Communications Corporate Communications Asia Pacific Asia Pacific +603 6204 5832 +603 6204 5910 firstname.lastname@example.org email@example.com Arun Chandrasekaran Research Director ICT firstname.lastname@example.org 10
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