Many Australian enterprises have gone from Cloud denial to beginning their Cloud evaluation strategy over the last 12 months, according to Gartner.

Research director at the analyst firm, Michael Warrilow, detected a "distinct mood change" about enterprise Cloud in Australia throughout 2013.

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As a result, he expects this trend to lead to further Cloud projects, both on-premise and using Cloud vendors, this year and beyond. "There will be an increase in private Cloud projects, as well as a greater increase in private Cloud failures," he said.

Avoiding failure

To avoid ending up in the failure category, Warrilow said there are some common pitfalls to avoid.

"To be successful at private Cloud requires improvement in service delivery, process automation and organisation structure," he said.

As these are "difficult, mostly non-technical" problems, Warrilow said it leads to the likelihood of increasing failure.

With the growing local interest in the public Cloud, an increase in competition for enterprise offerings in Australia is also to be expected over the coming months.

"Assuming security is taken care of, cost control becomes the greater risk," Warrilow said.

Patrick Budmar covers consumer and enterprise technology breaking news for IDG Communications. Follow Patrick on Twitter at @patrick_budmar.