Data Centres: The Infrastructure That Underpins The Cloud. May 2017
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1 Data Centres: The Infrastructure That Underpins The Cloud May 2017
2 Cloud computing is redefining the way that IT services are accessed and delivered On Demand, Self-Service Characteristics Pay-as-you-use, Metered Consumption Rapid Elasticity, Scale up/down Shared Pools, Illusion of Infinite Resources Broad Network Access Using Standard Internet Protocols Service Types Software as a Service Software delivered through the public or private network Platform as a Service Development platform as a service Infrastructure as a Service Compute, storage as a service Deployment Models Public Private Community Hybrid Source: Frost & Sullivan Analysis 2
3 Trends Impacting the data centre market Increasingly fragmented cloud services ecosystem Migration of workloads and applications to the cloud Increased reliance on the public cloud Significant room for growth in cloud computing in Australia Australia leading the way in data centre outsourcing 3
4 Applications are increasingly delivered by multiple vendors in the cloud ecosystem IT Application Business applications Compute / Storage Custom Applications Implementation Choice SaaS SaaS + IaaS IaaS PaaS Type of Cloud Public Cloud Managed Hosting Third-Party Private Cloud Self Hosted Private Cloud RISE OF THE MULTI-CLOUD, MULTI-VENDOR ENVIRONMENT. Source: Frost & Sullivan Analysis 4
5 US$ billion CAGR Global cloud services currently a $277 billion market: APAC at $11.3 billion, but strong growth forecast Cloud Services Market Size Australia APAC CAGR Growth ( ) 30% 28% 25% 22% 20% 15% 11% 10% 5% 0% Australia APAC Global Source: Frost & Sullivan Analysis 5
6 Applications & workloads moving rapidly to the cloud % 10% 20% 30% 40% 50% CAGR Asia Pacific Data Centre Traffic Data Centre Workloads (Public Cloud) Million Public cloud workloads increasingly dominant, as security and latency concerns with public cloud reduce. 40% CAGR increase in public cloud workloads over next 5 years SaaS is dominant workload, as usage of SaaS for business applications increases rapidly (currently Australia at ~40% compared to US >60%) Source: Cisco, Frost & Sullivan
7 Australia still has potential for significantly greater adoption of cloud services Finland Sweden Denmark Australia UK EU average Adoption of Paid Cloud Computing by Businesses USA 0% 10% 20% 30% 40% 50% 60% Adoption of paid cloud services for business applications in Australia is ahead of the EU average, but still lags leading adopters such as Scandinavia and USA Adoption in Australia is accelerating, for example about 40% of small businesses are now using cloud services for core accounting and financials (Xero, MYOB, etc.) Source: ABS, Eurostatt 7
8 Square metres (in millions) Outsourced data centre space is growing well ahead of captive Global Data Centre Space by Type In-house Colocation Outsourced DC space has been growing at around 20% over the past 5 years, while the captive data centres are growing at around 3% over the same time period. However, outsourced space constitutes just 24% of total data centre space, which indicates a sizeable growth opportunity. The opportunity is even larger in APAC, with just 12.1% of total floor space outsourced Source: Datacenter Dynamics, Frost & Sullivan
9 Australia leads the way in data centre outsourcing Outsourcing of Data Centres Western Europe USA Asia-Pacific Australia 0% 20% 40% 60% 80% ,000 sq metres of outsourced data centre capacity in Australia Estimated at 55% of total available data centre space 6% growth in available space in 2015 Australia is an attractive market for outsourcing due to high power costs, availability of specialist providers Source: Frost & Sullivan, BroadGroup 9
10 A$ millions Australian data services revenue to exceed $2 billion by ,500 2,000 1,500 1, Australian Data Centre Services Revenue 12.4% 12.4% CAGR to exceed A$2 billion by 2021 Fastest growth in managed hosting, but co-location will still grow at over 10% CAGR Co-location Managed Hosting Source: Frost & Sullivan 10
11 Frost & Sullivan s cloud and data centre research agenda Recent Reports Australian Data Centre Services Market, 2016 Asia-Pacific Data Centre Services Market (10 countries), 2016 European Data Centre Services Market, 2016 Data Centre Benchmarking Strategy Study, 2016 Global Data Centre Infrastructure Solutions Market, 2016 Global Modular Data Centre Market, 2016 Global Power & Cooling in the Data Centre Market, 2015 Asia-Pacific Cloud Computing Services Market (10 countries),
12 THANK YOU
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