It seems like cloud has proven itself in recent times as businesses quickly stood up digital capabilities like remote working, omnichannel customer interactions and digitised supply chains.
Have these elevated Aussie businesses’ confidence in the cloud?
Will businesses be ramping it up and move on to migrating critical apps and workloads?
If not, what are the concerns stopping them and how are they looking to navigate those challenges?
These are some of the questions we sought to answer as we worked with Omdia to uncover just how businesses are looking to exploit the cloud advantage.
Surprisingly, businesses are not ready for cloud
IT leaders have had to accelerate cloud deployment during COVID-19, to retain business continuity and agility in uncertain times.
Businesses are telling us that cloud has moved beyond an experimental side project yet, only 41% feel well-prepared for the cloud migration journey. This widening chasm between where organisations want to be in their cloud journey vs where they are today is driven by complex and diverse constraints, especially in the areas of security, risk and compliance and expertise.
Cloud security still a major hurdle that’s deterring adoption
We’ve heard all the big stats about the rise of cybersecurity threats. This research confirms the fears of many IT executives – 79% of Australian organisations experienced a cloud-related security incident in the last 12 months!
We’ve also learned that only 21% of organisations feel well-prepared for cloud security challenges. When you think about how hard it is to stay on top of access control, the ever-growing sophistication of threats and the difficulty in implementing consistent security controls over increasingly complex multi and hybrid cloud architectures.
This combined with a lack of expertise across the means organisations will be looking to bring in help, with 78% of respondents indicating an increase in cloud cybersecurity spend this year.
Public, private or hybrid?
So how are Aussie business approaching their cloud strategy?
With the likes of AWS and Microsoft Azure continuing to achieve double digit growths, public cloud seems like de rigueur. Is it?
Our research found that 60-80% of organisations still have the vast majority of their business-critical applications and workloads in hybrid environments. That is a result of these workloads being left until last but also represents a large opportunity for operational improvement as comfort with public cloud and security improves.
The report details the concerns that Aussie businesses have in moving to public cloud, the types of critical business applications they’re looking to move, longer term trajectory and more.
What is cloud ROI?
Whilst the benefits and advantages of cloud are well-known to many now, we’re hearing from businesses that one of the biggest challenges remaining is build a compelling business case to complete the move to cloud.
IT leaders are expected to articulate a return on investment (ROI). What we found was that successful cloud adoption business cases consider more than just financial benefits. Getting measurable improvements to end user experiences actually came up as one of the top consideration. And further, our conversations with customers and the report confirm that customers are looking to cloud to enable greater agility to innovate and support business growth.
“Everything will drill down to the user experience. Cloud ROI will be based on the measurement of the productivity of the user. The value add here is to ensure the system and the user experience are always up”.
Director of IT at Australia-based integrated building services company.
What next for Australian businesses to realise the advantages of cloud?
Download the report to get in-depth exploration of the cloud themes that were covered here as well as some key recommendations from IT and business leaders whom we interviewed.
The Telstra Purple and Omdia State of Cloud Adoption in Australia 2021 Report is a unique research that sought to understand the realities of cloud computing amongst leading Australian organisations. Download your copy here.