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Resource Centre | December 19, 2018

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Cloud computing driving growth in Australia’s data centre industry

Australia's data centre industry continues to experience rapid growth.

An upsurge in demand from companies needing additional data storage options is a major factor driving growth in Australia's data centre services.

According to Frost and Sullivan, Australia's total market for data centre services was worth $976 million in 2015, a figure they predict will grow at an average rate of 12.4 per cent per year until 2022, with the market reaching a total of over $2 billion by 2021.

The total market for Australia's data centre services industry is forecast to top $2 billion by 2021.The total market for Australia's data centre services industry is forecast to top $2 billion by 2021.

Wonjae Shim, a research analyst at Frost and Sullivan, said the primary reason organisations were outsourcing their data storage requirements is the cost of building and maintaining in-house is too costly and time consuming. Another key driver is the heightened demand for cloud computing, Shim added. 

"Cloud services providers are amongst the largest users of data centres facilities in the world and this is a catalyst for growth in the [data centre] ecosystem, drawing enterprise customers, telcos and IT services firms," she said. "Enterprise organisations are storing less data in-house, opting for cloud service providers; so co-location providers proportion of revenues from cloud services providers is growing."

Cloud services providers are amongst the largest users of data centre facilities.

Many companies adopting hybrid cloud model

In addition to cloud services, an increasing number of firms are embracing big data, Internet of Things (IoT) applications and data analytics. Given the need for extra computing power, combined with an upsurge in global mobile data traffic, it's no wonder organisations are actively seeking additional data storage options. 

Organisations in Australia and around the world are going through a period of dramatic digital transformation. As part of this process, there have been significant innovations in terms of where organisations store their data, with a hybrid cloud model – in which at least some of their data is outsourced to external servers – being increasingly seen as an optimal choice. 

The IDC CloudView 2016 survey revealed that more than half of Australian firms have already adopted what they consider a hybrid cloud strategy, while almost 80 per cent have expressed a desire to move to such an environment

More than half of Australian firms have already adopted what they consider a hybrid cloud strategy.

Consult the cloud experts at ANATAS

ANATAS is a leading provider of service integration, services and products that provide complete end-to-end solutions to help maximise business success. Our IT consultants are also highly experienced in digital transformation initiatives and hybrid cloud adoption. If your organisation is looking to transform, please get in touch with us today. 

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