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Accelerating into the cloud

Brian Karlovsky | June 25, 2015
As the Cloud sector grows ever more rapidly and different solutions and plays seem to appear almost daily, the question becomes one of detail and matching need with the correct package. Brian Karlovsky looks at how the market is developing and what the channel should be doing for its clients.

"We're also seeing a trend towards offering the whole hybrid Cloud model under consumptive billing arrangements growing in popularity. The need for competent services organisations to advise, migrate and manage services in this new model is becoming more important by the day," he said.

Bulletproof director of sales and marketing, Mark Randall, said Data sovereignty laws, recent changes to privacy legislation and desire for high performance and low latency were the most significant factors driving a preference for local datacentres.

"Of course, most major global Cloud providers now host locally to address these requirements," he said. "Consequently, customer concerns around this topic have dwindled in the last couple of years, with organisations more focused on Cloud as a means of supporting business agility, innovation and cost savings."

He said more aggressive sovereignty or privacy laws may drive the final few global providers to set up local datacentres sooner than they otherwise would.

NEXTDC CEO and executive director, Craig Scroggie, said data sovereignty was an important consideration in this highly globalised world. Many Australian businesses, large or small, want to understand where their business data resides.

"Many businesses are comforted by the knowledge that when it's stored locally, it is protected by Australian laws and not subject to foreign jurisdictions,"he said. "Multinational Cloud providers, who are hosting locally, are not pushing data out of Australia; they are driving investment into Australia. The reality is that multinational companies are taking major steps to place infrastructure within Australia's jurisdiction to allay consumer and community concerns. So we'll see more local presence from big global Cloud providers, while many are already here, there are many still to come."

Only a few avenues

Rhipe vice-president, market research, Stephen Parker, said the entry of Amazon and Microsoft into the local market left only a few avenues for local players.

"You have either got to get some massive scale or you have got to find localised differentiation," he said. "One of the challenges of localised differentiation is that Amazon and Microsoft are now in the local market, so simply having a local presence is no longer a differentiation.

"Twenty-four months ago the local presence was a differentiation, but now when we talk local we talk hyperlocal, which might be relevant for latency, or even just the emotional angle.

"It could be because of the high speed connect, it might be that you're on a high-speed ring.

"If you're just down at the generic IaaS, PaaS layer you're going to have to have some local differentiator and, in reality, that differentiator is when you start to say things like: 'We have the ability to really deliver hybrid'.

"You can have your server on your premises, your server with your service provider and maybe some servers with Amazon. We have invested in the technology that links all of those together.


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