Research has recently revealed that over half of Australian companies using cloud hosting services are spending 10% of their budget on the cloud. This research has been compiled by Frost and Sullivan and demonstrates the true global reach of cloud computing and managed hosting.
Furthermore, additional research has found that 70% of Australian businesses that are making use of cloud hosting are looking to boost their services by a substantial amount in the next 12 months.
Overall, the research revealed that 53% of the companies using cloud computing spend more than one tenth of their IT budget on cloud hosting solutions whilst 31% spend more than 20% of their allocated IT budget.
The study also revealed that there are similarities between companies pursuing SaaS and IaaS.
SaaS, unsurprisingly, remains the most common delivery model whilst the use of IaaS has dramatically increased recently. This has been the result of the increased local market adoption.
However, the research has also flagged up the usual concerns regarding switching to cloud hosting. Security has been noted as the crux of the concerns when selecting a particular cloud vendor whilst good support and reliability were also important factors. Hosting capabilities and the reputation of the company are also significant aspects when choosing a cloud vendor.
Mayank Kapoor, a Frost and Sullivan industry analyst, has been explaining: “Cloud-based solutions enable organisations to focus on other aspects of operations by freeing up key resources previously dedicated to other IT services”.
He then went on to add: “Providing the flexibility to meet business demand via real-time and on-demand computing also rates highly”.
It has previously been predicted that spending on cloud hosting services will reach a global figure of £131 billion by 2016 which will far surpass the 2012 figure of £69 billion. With thousands of companies spending 10% of their IT budgets and upwards on their cloud services, it is little surprise to see such enormous monetary predictions.
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