The transition of the cloud market sector is fascinating to be part of, particularly in a digitally sophisticated region such as Australia, which has diverse needs and increasingly complex data appetites.
In terms of tipping points, 2013 was “the year of the cloud” for Australian enterprise adoption. The landscape radically changed in a short timespan, with a significant rise of cloud service providers breaking into the market. Adoption has swiftly followed and what we are seeing now is a blooming market with increasing competition and diversity of choice.
In this phase of the cloud metamorphosis, we are also seeing a shift from public and private cloud computing to the hybrid multi-cloud, as businesses look to leverage multiple cloud environments that work with their own private infrastructure optimised to maximise their business outcomes.
Today, enterprises look at cloud services as part of their direct environment, seamless with their internal infrastructure. Enterprises are embracing cloud adoption in ways that suit the specific needs of their business, tailoring the cloud to meet each specific workload and employing more diverse paths such as hybrid cloud and multi-cloud environments.
Supporting this trend, a recent study on the Australian cloud market from Telsyte found that one third of Australian CIOs said that they were using a hybrid cloud with 30% of all enterprises saying they plan to adopt a hybrid cloud approach by 2018. What’s more is that Telsyte estimates that the public cloud IaaS market will nearly double, rising to AUD$650 million by 2018 from AUD$305 million today as more CIOs use a mix of public and hybrid cloud services.
However, hybrid cloud isn’t the only gamechanger. The multi-cloud strategy in which companies deploy applications across different clouds, using a variety of cloud partners is also the way of the future.
As we watch the cloud market continue to mature, the hybrid multi-cloud approach will be integral to the strategic view for CIOs in both process management and future data planning.
This provides a ripe opportunity for Equinix to leverage our global experience in this area. When Amazon began offering AWS direct connect in the Australian market, for example, it enabled our customers to have access to AWS through Equinix’s data centers along with over 170 other cloud providers in our Australia ecosystem. In addition, per Microsoft’s announcement on 27 October, Australian customers will be able to connect to Microsoft Azure via our Cloud Exchange, enabling them to build secure and scalable cloud solutions inside Equinix’s data centers.Between the large IAAS cloud providers and the more bespoke cloud service providers in our facilities our customers have the capability to blend their cloud solution into an optimum mix.
What we are witnessing are drastic shifts from the nascent days of cloud, where it was more buzz than reality – the rubber is now hitting the road.
In the coming months, we expect to see a further acceleration of both new cloud solutions coming into Australia and a rapid acceleration of adoption of the hybrid multi-cloud model. We will see Australian organisations continue to lead the world in adoption of innovative cloud solutions to drive their business outcomes with Equinix providing the on ramp for this multi-cloud reality.