Australian enterprises are accelerating Cloud adoption, and as a result, 80 per cent of IT delivery is expected to be Cloud-based by 2016, according to research by Hewlett-Packard (HP).

The 'HP Research: Big Data and Cloud' study indicates private Cloud will account for 37 per cent, with managed Cloud and public Cloud at 24 and 20 per cent, respectively. Traditional IT will remain a key delivery model, accounting for 20 per cent.

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This is because enterprises are recognising significant gains in private Cloud investments and establishing hybrid delivery models which will meet their needs are requirements change.

HP said rapid adoption rates in Australia are driven by respondents' expectations that Cloud will lower costs (60 per cent), drive agility (60 per cent), and improve customer services (52 per cent).

At the same time, 40 per cent of respondents said they are not running any return on investment (ROI) analysis for the Cloud initiatives. Of these, 17 per cent use 'time of delivery' metrics and 17 per cent measure Cloud implementation by calculating cost benefits.

HP suggests the study "indicated that as budgets continue to be funnelled to Cloud technology, enterprises want open architectures that span private, public, managed and traditional delivery models." The vendor also claims 65 per cent of respondents in Australia believe Cloud computing should evolve to an open platform.

Implementation

According to Australian respondents, the primary barriers to implementing a Cloud strategy and moving applications to the Cloud include: defining service level agreements (SLAs; 68 per cent); meeting regulation and governance (50 per cent), managing issues with data sovereignty (60 per cent); identifying the most appropriate strategic partner (50 per cent).

The most important capabilities in an organisation's public Cloud usage are security (68 per cent), highly-specified SLAs (68 per cent) and credit card (pay-as-you-go) based solutions (55 per cent). The ability to handle enterprise-grade workloads ranked lowest at 38 per cent.

Conducted by Coleman Parkes Research, the study comprised 200 interviews in Asia-Pacific and Japan (APJ) among senior business and technology executives within enterprises and midmarket companies. All interviews were conducted in April 2013.