Telsyte Australian Cloud Computing Market Update Prepared for Logicalis Australia, September 2015

Transcription

1 Telsyte Australian Cloud Computing Market Update 2015 Prepared for Logicalis Australia, September 2015

2 Executive summary DISRUPTION: AUSTRALIAN ENTERPRISES ARE CHANGING NEARLY 20% OF ICT BUDGETS ARE SPENT ON CLOUD INFRASTRUCTURE AND APPLICATIONS CLOUD IaaS SPENDING WILL REACH $775M BY 2019, UP FROM $366M THIS YEAR 40% OF SERVER & STORAGE EQUIPMENT STILL IN OFFICE SERVER ROOMS TWO-THIRDS OF ICT BUDGETS ARE SPENT ON OPEX RATHER THAN CAPEX WITH THE FUTURE LOOKING MORE AS-A-SERVICE CLOUD IaaS TO BE IN USE BY OF AUSTRALIAN ENTERPRISES BY % CLOUD-BASED POINT SOLUTIONS NOW A TOP 3 DRIVER FOR BUSINESS UNIT IT SPENDING Telsyte Australian Infrastructure & Cloud Computing Market Study

3 Use of Cloud aligned with key themes to transforming and improving business operations Q: What best describes your top business priorities for FY2015? 2012 Revenue growth Operational cost savings Capital investment Customer acquisition and retention Sustaining or improving profit margins 2013 Operational cost savings Productivity Revenue growth Business process improvement Sustaining or improving profit margin 2014 Operational cost savings Revenue growth Business process improvement Productivity Improving customer experience 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 3

4 IT decision makers looking to increase spending on cloud services Change in spending across technology area Increase Keep the same Decrease Cloud computing/iaas/hosting Mobile devices (smartphones) Software as a service (SaaS) Mobile devices (media tablets) Cloud UC and telephony PCs/Notebooks CRM & marketing automation On-premises software licenses Application Management Services Internal IT staff Mobile voice/data services Software development/paas Managed services/outsourcing External IT consulting System integrator project work On prem network & comms ERP, finance, HR software On-premises storage infrastructure Fixed-line voice/data services Microsoft Office Customer service/contact centres On-premises server infrastructure 44% 37% 36% 35% 31% 30% 30% 29% 26% 26% 26% 25% 25% 23% 23% 21% 20% 20% 19% 40% 52% 49% 52% 53% 59% 53% 57% 59% 53% 62% 57% 55% 53% 59% 58% 64% 59% 60% 68% 62% 63% 9% 9% 8% 9% 9% 10% 10% 13% 10% 18% 9% 10% 12% 15% 11% 15% 10% 17% 17% 11% 11% 17% Big Movers up in 2015 Mobile devices (smartphones) Software as a Service PCs & notebooks Source: Telsyte Australian Digital Workplace Study 2015 ; n=424 4

5 OPEX spending higher than CAPEX, organisations more likely to have an OPEX-driven future 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. CAPEX 34% OPEX 66% 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 5

6 Security, reliability, DR top cloud decision making Q: How do you rate the following factors when choosing a third-party infrastructure hosting provider (managed or cloud)? Security Reliability Disaster recovery ability Cost Support quality Ease of doing business with SLA quality Network bandwidth Data/Infrastructure location control Scalability Management interface Infrastructure management skills Flexibility Existing software API quality Billing simplicity Avoiding DC provider lock-in Existing assets 76% 75% 75% 75% 75% 75% 74% 74% 74% 73% 73% 73% 72% 72% 72% 79% 78% 81% 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) 6

7 Nearly two-thirds spend $1K-$20K on IaaS per month 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. $100,000 or $50,000 to more $99,999 5% 6% Less than $1,000 11% Monthly spend 20 to to $31,000 $20,000 $98,000 $20,000 to $49,999 14% $1,000 to $4,999 22% Top cloud spenders by industry Industry sector Mean monthly expenditure Government (n=7) $102,000 Construction (n=8) $88,000 $10,000 to $19,999 22% $5,000 to $9,999 20% Transport (n=12) $76,000 Real estate (n=14) $67,000 Telsyte Australian Infrastructure & Cloud Computing Market Study 2015 ; n= 137 ; base: organisations using public cloud services for storage and servers 7

8 Poor performance bugbear for public clouds Q: Why are you reducing public cloud spending/use at your organisation? Not happy with performance of cloud services 32% Too much reliance on network Cloud service not reliable enough Privacy concerns following government surveillance revelations Bandwidth speed/costs make cloud unviable 23% Cloud services not flexible enough 18% Cloud services more expensive than on-premise More powerful public clouds reduces need for more services 14% 14% Security concerns following incidents 9% Telsyte Australian Infrastructure & Cloud Computing Market Study 2015 ; n= 22 ; base: organisations reducing cloud spending (multiple selection allowed) 8

9 Orgs favouring managed cloud providers Both managed service and transactional was 30% of organisations in 2013 (n=175) Q: Which type of public cloud providers does your organisation procure infrastructure as a service (IaaS) from? Both managed service and transactional cloud providers 26% A transactional public cloud provider 32% A managed service public cloud provider 42% Managed service was 37% of organisations in 2013 (n=175) 50% 49% 48% 47% 46% 45% 44% 43% 42% 41% 40% Growth in spending by type of public cloud use Growth for managed service clouds was 49% in 2013 (n=65) 44% A managed service cloud (n=57) 45% A transactional cloud (n=44) Telsyte Australian Infrastructure & Cloud Computing Market Study 2015 ; n= 137 ; base: organisations using public cloud services 9

10 Cloud concerns centre on security, data location Q: Which of the following concerns does your organisation have of public infrastructure as a service (IaaS) cloud services? Security concerns following incidents Data location concerns (hosted off-shore) Bandwidth speed/costs Legal requirements Data and application sovereignty Too much reliance on network Privacy concerns following government surveillance revelations Cloud service not reliable enough Poor performance of cloud services Organisation data management policies Organisation culture Complex billing We don't have the required cloud skills Cloud services are more expensive Cloud services not flexible enough 20% 20% 19% 18% 18% 16% 16% 14% 14% 13% 13% 12% 12% 11% Telsyte Australian Infrastructure & Cloud Computing Market Study 2015 ; n= 245 (multiple selection allowed) 10

11 Cloud forcing change to IT staff roles Q: How is any move to cloud computing likely to impact internal IT support staff? IT staff numbers will stay the same, but their IT role will change 23% IT staff may be redeployed to non-it roles 14% No impact IT staff numbers will stay the same 32% The gap between organisations decreasing and increasing staff due to cloud has narrowed in 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 employee company size which have fatter IT infrastructure operations. IT staff numbers will decrease 16% IT staff numbers will increase 15% Telsyte Australian Infrastructure & Cloud Computing Market Study 2015 ; n=

12 Rodney Gedda Senior Analyst Level 20, 135 King St Sydney, NSW 2000 Tel: rgedda@telsyte.com.au David Arbis Associate Analyst Tel: darbis@telsyte.com.au Foad Fadaghi Managing Director Tel: ffadaghi@telsyte.com.au TELSYTE HEAD OFFICE (HSBC TOWER) LEVEL 29, 580 GEORGE ST, SYDNEY 12