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Study: Australian enterprises to boost cloud investments

A new report by Frost & Sullivan noted that the ability to increase standardization of IT, reduce overall IT expenses and enhance business agility are driving cloud adoption rates in Australia. The report said that roughly 53 percent of companies that are currently using the cloud spend at least 10 percent of their total IT budget on the technology, while another 31 percent allocate more than 20 percent of their budget to cloud services or solutions.

"Cloud-based solutions enable organizations to focus on other aspects of operations by freeing up key resources previously dedicated to other IT services," Frost & Sullivan industry analyst Mayank Kapoor said. "Providing the flexibility to meet business demand via real-time/on-demand computing also rates highly."

How companies are using cloud computing in Australia

While larger businesses tend to invest more in the cloud than their smaller counterparts, approximately 70 percent of organizations plan to significantly increase their cloud investments during the next 12 months, the study noted.

Software as a Service continues to be the most commonly deployed cloud model because of the technology's benefits compared to premise-based solutions. These include lower upfront costs, seamless integration with existing infrastructure and the ability to increase mobile capabilities without undergoing difficult upgrade processes, Frost & Sullivan noted.

Although SaaS is more common throughout the enterprise, Infrastructure as a Service has experienced a significant uptick in adoption during the past two years. This phenomenon is attributed to the growing number of local data centers, which helps decision-makers feel more confident in the cloud's ability to provide reliable access to mission-critical tools and services, the report said.

This finding was confirmed by a separate Ci&T study, which revealed that IaaS is becoming a more popular cloud model because it can help IT departments develop highly flexible and scalable virtual environments. As a result, businesses will be able to enhance efficiency and potentially gain a competitive advantage over rival firms.

Additionally, Frost & Sullivan noted that email and cloud storage resources are two of the most commonly accessed solutions through the cloud, as 59 percent of Australian businesses currently leveraging the cloud use them regularly.

As cloud technologies mature worldwide, decision-makers will continue to adopt the services in an effort to enhance productivity, reduce long-term IT costs and boost flexibility, helping them grow during today's ongoing economic crisis.

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