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Cloud permeating whole business, not just IT: IDC

By Eleanor Reader

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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