19 Feb 2015

Aussie companies look for ‘value for money’ in the Cloud

Australian businesses looking for cost efficiencies and an improved bottom-line are predicted to adopt cloud services in bigger numbers this year.

According to an annual cloud survey by IT services company Brennan IT, cost savings will be the key objective for many Australian businesses throughout 2015.

The survey of more than 100 Australian mid-market organisations conducted last month, found that 47% expect the need to increase profit, revenue and sales will be the biggest challenge facing their business in the next two years.

Brennan IT managing director, Dave Stevens says the need to increase profit, revenue and sales will drive organisations to seek greater cost efficiencies within their businesses, with 41% of organisations surveyed reporting they were looking for value for money in their Cloud services as they plan for the year ahead.

Stevens says, for the hype behind the Cloud, the survey also shows that many Australian organisations are not leveraging the Cloud to its fullest extent.

According to the survey, 59% of organisations are making use of the Cloud currently (with the number rising to 69% in smaller organisations of 50-199 people), and while 31% said they would recommend the Cloud to other organisations based on its ability to back up data, the survey also found that 37% of respondents do not have a Disaster Recovery plan, and 65% of those that do only test their plans once every six to 12 months.

Stevens says this is despite the ability for Cloud services to enable real time replication of data, increase regulatory compliance in terms of data retention, and seamlessly integrate with existing systems.

According to Brennan IT, the Australian market can expect to see Cloud adoption accelerate over the course of the year, but Stevens says organisations will be highly selective about what Cloud services they take on.

The survey found that 52% of organisations identified themselves as being conservative with the adoption of new technology, and while Cloud has a good reputation in the mid-market – with only 13% of existing users saying they would not recommend Cloud to another party – the survey also found that for many Australian businesses, having their data hosted within local data centres is of critical importance, with 74% of respondents claiming that it was “very” important that the Cloud provider was local.

According to Stevens, the survey findings show that mid-market organisations are looking for technology partners that can engage with them deeply in order to leverage the Cloud to their ultimate advantage.

“Organisations in the mid-market have been underserved by many providers, who don’t understand their needs or how to help them achieve their business objectives.

“There is clearly an appetite in the mid-market for the adoption of a broad range of Cloud services, but they need a partner that understands where their pain points are and how to best address them. It’s not enough to simply offer a Cloud service to the mid-market.”

This article first appeared in iTWire on the 19/02/2015