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The race for the Australian cloud

Steve Hodgkinson | Nov. 6, 2009
Cloud computing is a scale business and the race is on in Australia to build critical mass locally before the global players set up shop.

Enterprise demand aggregation is the key strategy for cloud growth

While the popular notion of pure cloud computing is the incremental growth of pay-as-you-go virtual server instances such as on Amazon EC2, this model will not provide a fast enough path to market leadership in Australia. Growth will be too slow and providers will risk being overtaken by global competitors.

Australian cloud providers will need to be quick off the mark with scalable cloud infrastructure and then grow the customer base aggressively by winning big enterprise accounts. The trick is to start big and then get bigger fast.

Telstra is a potential cloud leader in terms of its Australian focus, operational scale and security credentials. The deal with Visy creates a catalyst for Telstra to harness both its substantial internal demand and that of Visy to implement a scalable virtualised automated IT infrastructure-as-a-service capability.

However, Telstra needs to move quickly from this base to convince other Australian corporates and government agencies that it is committed to assuming leadership of Australias cloud computing market. Any lack of commitment to the cloud on Telstras part risks ceding leadership of the local game to players with a stronger belief in the new rules of cloud logic.

Steve Hodgkinson is the director of Ovum's government practice in Australia and New Zealand. 


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