IT systems are becoming more complicated and driving businesses to the Cloud, according to Schneider Electric.

Datacentre segment manager, Adam Wilkinson, said the rising complexity is creating a need for a wide variety of solutions, such as off-premise co-location, off-premise hosted services, public Cloud and more.

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The Cloud may seem like an appealing business solution to deal with this problem, though Wilkinson said the hosting location can sometimes prove to be an obstacle.

"Businesses and organisations who keep data on offshore-hosted platforms need to evaluate how new Australian Privacy Principles regulate trans-national data flow and can impact on their Cloud operations," he said.

Local guidance

If companies are ready to make the plunge with Cloud, Wilkinson said there are benefits in not delaying the transition longer than needed.

"Companies who are delaying their operational transition to cloud-based platforms risk incurring higher capex [capital expenditure], as well as restricting their ability to engage new business models, leaving them at a significant competitive disadvantage," he said.

The move to the Cloud can be a daunting one, though one where resellers and partners can step in and assist with.

Wilkinson said it is up to the channel to be actively consulting with customers to understand their business environment and preferred financial models.

"If their customers are opex [operational expenditure] constrained then there is a reduced probability they would move to an out sourced model, whether datacentre or Cloud services," he said.

"Alternatively, if they are capex constrained then they may be increasingly open to an outsourced model."

Wilkinson said there is a real need by customers to receive consultancy on how they can best deliver business applications and services to their organisation, which is something partners and resellers can assist with.

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