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Cloud permeating whole business, not just IT: IDC

Cloud services in Australia are increasingly being viewed as the
delivery model for business process services for the whole business, not
just IT, according to IDC.

The analyst firm has observed that when organisations seek to change
their business operations they are more often choosing “everything as a
service”, where all IT services can be consumed through a cloud based
delivery model at a significant fraction of the cost as well as a
reduced implementation time.

This trend towards hybrid cloud solutions could see cloud options
substituted for traditional outsourcing services, and to some extent,
project-based services.

IDC Australia’s Cloud Computing Study 2012 revealed that nearly 70 per
cent of CIO/IT executives expected to use public cloud services in the
next three years for mission-critical applications and infrastructure,
such as ERP, decision support and analytics and IT infrastructures.

“Cloud service future ubiquity will mean that it will permeate the
sourcing strategies of CIOs and business unit managers alike. The use of
externally sourced businesses and IT services from ‘the cloud’ will
form the basis of an Outsourcing 3.0 period, and will provide an
extensive portfolio of services from which innovative solutions will be
constructed,” says Raj Mudaliar, senior analyst IT services, IDC.

IDC forecasts the revenues from public IT cloud services in Australia to
exceed $2.33 billion in 2016, with standout growth coming from virtual
private cloud revenues, forecast to grow from $251.8 million in 2012 to
$720.2 million in 2016, and Platform as a Service revenues, expected to
grow from $36.9 million in 2012 to $92.4 million in 2016.

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