Cloud IaaS in a hyperscale-dominated mini-boom

By Amy Sarcevic
Thursday, 25 June, 2020

Cloud IaaS in a hyperscale-dominated mini-boom

Australia’s cloud infrastructure as a service (IaaS) market is experiencing a ‘mini-boom’ and will total more than $1 billion by the end of the year, according to research by Telsyte.

The projection — a year-on-year increase of 23% — is mainly a response to COVID-19, with almost half of firms adopting a ‘cloud first’ policy or increasing cloud infrastructure spend, to counter the challenges of the pandemic.

The research also shed light onto existing cloud IaaS adoption patterns, revealing that 75% use multiple cloud platforms, with an average of four different cloud service providers — up from 3.8 in 2019. These are typically a combination of hyperscale, MSP (managed service provider), hosted and on-premises, particularly in larger enterprises.

The big six global hyperscale providers — AWS, Azure, IBM, Google, Oracle and Alibaba Cloud — dominate the national cloud market, with a combined $740m in IaaS revenue in 2019, or 82% of the overall market. AWS and Azure are firmly leading the pack.

This dominance is set to continue with hyperscale cloud providers, combined, projected to generate $1.7bn in IaaS revenue by 2024 — or around 85% of the total market.

Image credit: ©

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