Reseller News

INSIGHT: Why A/NZ will be ahead in hyperscale cloud adoption

Rob Purdy, Director of Cloud and Enterprise Tools, Datacom Australia explains why Aussies and Kiwis have an advantage in the cloud...

Gartner recently released its Predictions on IT spending in 2015. In it, a Research Vice President in Gartner’s Technology and Service Provider Research group, John-David Lovelock, made what some would consider a bold prediction about the hyperscale cloud.

“The next inflection point [for hyperscale cloud] will come in 2018, when the needs of digital business will surpass the capacity of traditional data centres, which will be seen as too slow and siloed.”

“Lovelock’s prediction encompasses all geographies so he’s probably correct,” observes Rob Purdy, Director of Cloud and Enterprise Tools, Datacom Australia, “but after reading the report I tweeted that in Australasia it’s likely that date will be earlier.”

Purdy accepts that’s probably an even bolder statement than Gartner’s initial prediction – but here’s the reasoning.

“In A/NZ we’ve always been early adopters,” Purdy says. “When we look back at the evolution of IT, Australasia has always adapted quickly when technology has either provided compelling savings or enabled businesses to move faster.”

According to Purdy, one of the best examples of this was the “rapid, and early, adoption” of virtualisation in the data centre.

“Even now, VMware will confirm that the Australasia region leads the world in virtualisation with around about 80 percent of data centres using either some or extensive virtualisation,” he explains.

“Around the business we have few customers who aren’t asking how they can utilise cloud services, who aren’t already actively assessing migrations or who haven’t already begun migration programmes to Datacom’s cloud service or public clouds.

“This seems to be especially true on the east coast of Australia.”

Due to geographic challenges, Purdy believes South Australia, Western Australia and New Zealand are likely to be slower in adoption of public cloud providers, specifically IaaS.

“When it comes to SaaS-based applications like Office 365,” he adds, “I’m expecting large-scale adoption over the next few years as Microsoft creates attractive bundles under Enterprise Agreements and the announcement of Australian in-country services removes a number of the previous barriers to adoption.

“There are a few hurdles that remain, like the patriot act for example; however in my role I’m in constant contact with Australian and New Zealand Governments and it’s clear that at a national level they are becoming more open to allowing departments/agencies leverage the hyperscale cloud where it makes sense.”

Page Break

For the Australian market especially, the opening of Microsoft Azure in Melbourne and Sydney triggered a switch in most companies’ minds, according to Purdy.

“They now believe the public cloud is a viable option for enterprise workloads,” he claims.

“That’s not quite the case.

“Some older applications just aren’t suitable for public cloud platforms due to the way public clouds deal with failure of services – i.e. they rely on the application to deal with the failure whereas traditional applications have relied on underlying infrastructure (like VMware/HyperV) to maintain service.”

But Purdy acknowledges that it’s clear that the public cloud providers are starting to understand and are beginning to introduce services that address this challenge.

Amazon Web Services (AWS) announced recently that it has introduced ‘HA’ and Google already supports live migration for maintenance programs so that applications aren’t disrupted if the underlying hardware is under repair.

“Hyperscale providers (AWS, Azure and Google) are only going to step up their services to enable enterprise workload support, which will speed up the move to use hyperscalers for core IT systems,” Purdy adds.

Public Cloud…

Moving onto the topic of Public Cloud, Purdy believes spending surpassing traditional data centres more quickly than expected doesn’t mean that en masse people are going to move to Public Cloud services.

“There are customers who will continue to believe that the risk and the cost to move aren’t be justified, or that their business model doesn’t fit with a Cloud/Operational expenditure,” he adds.

“On-premise just won’t go away – those workloads aren’t moving to public cloud anytime soon.”

So for at least the next five years Purdy believes the industry is living in a hybrid world.

“But clearly the traditional vendors such as VMware, IBM, HP, Microsoft will be touting that their public cloud revenue to meet the expectations of Wall Street,” he adds.

By Rob Purdy - Director of Cloud and Enterprise Tools, Datacom Australia