Evaluating The Tech Trends in Australia for 2019
The Cloud Marketplace is now over US$250bn globally and growing at over 20% annually. In ANZ, various estimates of the market exist, but we can safely say the market is in the order of $AUD3bn, annually.
In this article we look at some of the key drivers companies are facing, the technologies that underpin the shift to Cloud, and some of the key points to look for in your Cloud Programs. We have completed our primary research survey of the ANZ and US Cloud marketplace and this offers some great insights into the state of the market and key drivers for adoption among Cloud Professionals.
Workplaces of the FutureUndoubtedly, one of the big trends for 2019 and beyond will be Future Workplace: The combination of the gig economy, collaborative workplaces such as We Work, and underlying demand to be able to work any time, any place, any device will fuel the requirements for more access to enterprise systems beyond basic office automation via as-a-Service offerings. This convergence of technologies and ubiquitous access are key drivers for the organisation, employee retention, and work-life balance. With over 56% of respondents currently undergoing a cloud migration or planning one over 2019/20, expect to see a big focus for this over the next 12 months and beyond. Most of the major platform providers are investing heavily in this area and Citrix is a player to watch.
Key Drivers for Cloud AdoptionBroadly speaking, we are seeing the following drivers for mid-market and enterprise adoption of Cloud in Australia.
Key Drivers for Cloud Adoption 2019 to 2025:
- Customer Experience
- Retire Legacy Cost
- Disaster Recovery
Difficult Workloads are left – It’s in the “Hard Basket’’
Cloud adoption in ANZ has been at a high rate since 2011. Indeed, at the recent AWS Summit for government in Canberra in 2018, hundreds of government agencies and for-purpose organisations extolled the virtues of cloud and are truly embracing the migration of core workloads.
In ANZ, most organisations have already moved the early-stage / low risk workloads to the Cloud, and Business Units have adopted SaaS models for key functional applications. When organisations have assessed their portfolio, we see that what is left to migrate are in the “hard basket”. This requires a different approach to discovery. The old approach to containerisation does not work – these applications coupled with the fabric of connectivity and virtualisation are too intertwined. Typically, these core enterprise applications, or custom enterprise solutions are a “bet the farm” high risk game.
Our survey identified that almost two-thirds (63%) of respondents listed a lack of skilled resources as a major pain point associated with cloud migration. Organisations must have our source all the requisite skills to truly see each piece of the puzzle, and for the enterprise this requires deep specialisation across half a dozen service provider architectures at a minimum. 37% of our respondents used anywhere from 11-20 Cloud Consultants or Migration Specialists to fill these gaps.
This means that to move these applications, virtualise them, and ensure connectivity and adequate end-to-end response time is akin to heart surgery. There are at least half a dozen specialisations to master and it is way too difficult to read the “how to cloud” manual while performing these migration operations. The trick is to use proven best-practice reference architectures and specialists in this area to deliver the projects safely and on time and budget.
Many organisations are electing for SaaS as the marketplace matures and solution-ready services provide an easy to consume solution. These choices are wonderful for the business, but need to be integrated with respect to security, file sharing, and identity management. This raises a whole new mantra for access, review of legacy virtualisation licensing, and how IT will govern the access, provisioning, and secure digital perimeter across a Hybrid Cloud and SaaS model.
SD WAN is now a big part of cloud strategy
The proliferation of Cloud is now allowing the same virtualisation to occur for Software Defined Networking. Organisations including Utilities in ANZ, which were traditionally seen as low on the innovation scale, are now embracing the chance to leverage cloud technologies and open up the competition to alternative providers to traditional carries so that they can extract cost savings by leveraging SD WAN technologies as part of the cloud strategy.
Security is key – companies struggling in-house need to embrace the Cloud
Organisations are rightly concerned about security. In fact, 75% of professionals listed risk/security management as a key driver for cloud migration. Not a week goes by without another news article about malware, hacking, etc. Many Australian organisations that are caught out by some sort of malicious event find out how hard it is to remediate after the event without just shutting down servers and restoring from backup. The new security perimeter and the security standards of the cloud platforms should not be underestimated. With security analytics and AI and threat detection of the Cloud Providers, it would be a brave person to say that their organisation and security can outmatch the Cloud Providers. It’s worth taking a look.
If you are struggling with keeping on top of it all – don’t panic – you can’t be an expert in everything. There are thousands of product updates by each of the major cloud providers each quarter and the velocity of change is increasing. As such, without specialisation in any one area, the chances are you will quickly be out of date. So, the old model of being a deep technical specialist across a wide variety of offerings will likely find you hit a roadblock. Seek advice as part of your discovery or migration planning projects with proven partners in Cloud Migration.
Enterprise IT gets into the Innovation Game
Digital innovation and enterprise IT are not often found in the same sentence, such less the same programs of work. While digital innovation often finds home to new greenfield projects outside of traditional IT, traditional enterprise IT leaders are now taking on higher risk programs in order to drive innovation versus perish on the sidelines.
Migration to the cloud is in full swing, but adoption of serverless technologies will be on the uptake for Enterprise IT developers as this has become the standard for greenfield development.
Feel free to contact us to discuss how we can help you with choosing the cloud strategy for your business. As a vendor independent consultancy we deliver unbiased and customer-centric outcomes and are pleased to invest time to understand your requirements and needs as a business.
*Note the Glasshouse ANZ Cloud Survey was conducted through to Jan 2019 and had hundreds of responses across ANZ corporate, mid-market and government sectors.