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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.

"In the IaaS spectrum, at the pure datacentre provider end, there has to be some differentiator otherwise you are going to struggle against the global providers."

He said local service providers, even if they could scale, would still need to offer that value-added service, which could be driving into hybrid integrated infrastructure services and PaaS services.

"By finding those industry niches, which say that 'our IaaS is different to yours, because we understand that you need eight years of document retention and you have a document retention policy that supports eight years because in that particular industry that is unique - but we offer it.

"Because of that, it doesn't matter that we are a bit more expensive, because the cheaper guy just can't do what you do and therefore all of his strengths are irrelevant.

"It's finding that angle which says: 'the strengths of my competition actually become irrelevant because they just can't do what you need'. You're either getting a much smarter differentiated IaaS, PaaS, or you find the industry vertical add-on as you head through this grey continuum from PaaS into SaaS."

HubOne chief executive and founder, Nick Beaugeard, said the main drivers of Cloud were uncertainty, fear in the eyes of the local industry, and a "strange parochialism which has plagued our industry for the last 20 or so years".

"In a significant number of engagements we have performed, there is [at the end of the due diligence], little legislative requirement for data to be located at rest in Australia," he said.

"In fact, we joke with customers that if a country with a standing army wished to access your data, no matter where it was held, it would become accessible to them."

He said the local industry was pathologically frightened of outside influence. "Whilst it makes total commercial sense to host datacentres closest to the largest number of customers [and at about one per cent of the global market Australia doesn't have that clout], our industry is ever keen to keep data, jobs... in the country."

Beaugeard said it was his strongly held view that the significant majority of information technology consumed over the next decade would be SaaS. "Software-as-a-Service seems to have reduced requirements on local datacentres and we see that driving customer behaviour from now on."

Much like virtualisation across machines, Beaugeard said datacentres will be scale hubs for large Cloud platforms. "Whilst research, academia and others may continue to deliver their own facilities, the allure of Azure and AWS is strong. "I see massive growth there [and I believe their tenancies are driving our current growth] with a reduction in bespoke, client specific implementation and installations.


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