Data Centres: The Infrastructure That Underpins The Cloud May 2017 - PowerPoint PPT Presentation

Data Centres: The Infrastructure That Underpins The Cloud May 2017

Cloud computing is redefining the way that IT services are accessed and delivered Service Types Deployment Models Characteristics Software as a Service On Demand, Public Software delivered Self-Service through the public or private network Pay-as-you-use, Metered Consumption Private Platform as a Service Rapid Elasticity, Development platform as Scale up/down a service Community Shared Pools, Illusion of Infinite Resources Infrastructure as a Service Broad Network Access Using Standard Internet Compute, storage as a Hybrid Protocols service Source: Frost & Sullivan Analysis 2

Trends Impacting the data centre market Increasingly fragmented Migration of workloads and Increased reliance on the cloud services ecosystem applications to the cloud public cloud Significant room for growth in Australia leading the way in cloud computing in Australia data centre outsourcing 3

Applications are increasingly delivered by multiple vendors in the cloud ecosystem Compute / Custom IT Application Business applications Storage Applications Implementation SaaS SaaS + IaaS IaaS PaaS Choice Managed Third-Party Self Hosted Type of Cloud Public Cloud Hosting Private Cloud Private Cloud RISE OF THE MULTI-CLOUD, MULTI-VENDOR ENVIRONMENT. Source: Frost & Sullivan Analysis 4

Global cloud services currently a $277 billion market: APAC at $11.3 billion, but strong growth forecast CAGR Growth (2015 – 2022) Cloud Services Market Size 60 30% 28% 50.8 50 25% 22% 40 US$ billion 20% 30 CAGR 15% 11% 20 13.5 11.3 10% 10 4.18 5% 0 2016 2022 0% Australia APAC Australia APAC Global Source: Frost & Sullivan Analysis 5

Applications & workloads moving rapidly to the cloud Asia Pacific Data Centre Traffic Public cloud workloads increasingly dominant, as 2016-20 security and latency concerns 2015 with public cloud reduce. 0% 10% 20% 30% 40% 50% 40% CAGR increase in public CAGR cloud workloads over next 5 years Data Centre Workloads (Public Cloud) SaaS is dominant workload, as 2020 111 usage of SaaS for business applications increases rapidly 2015 21 (currently Australia at ~40% 0 20 40 60 80 100 120 compared to US >60%) Million Source: Cisco, Frost & Sullivan

Australia still has potential for significantly greater adoption of cloud services Adoption of Paid Cloud Computing by Businesses Adoption of paid cloud services for business applications in Finland Australia is ahead of the EU average, but still lags leading USA adopters such as Scandinavia and USA Sweden Denmark Adoption in Australia is accelerating, for example about Australia 40% of small businesses are now using cloud services for UK core accounting and financials EU average (Xero, MYOB, etc.) 0% 10% 20% 30% 40% 50% 60% Source: ABS, Eurostatt 7

Outsourced data centre space is growing well ahead of captive Global Data Centre Space by Type Outsourced DC space has been 40 growing at around 20% over the Square metres (in millions) 35 past 5 years, while the captive 8.8 7.4 data centres are growing at 30 6.8 4.2 around 3% over the same time 25 3.5 period. 2.8 20 2.3 1.4 However, outsourced space 15 27.2 26.6 25.9 24.8 constitutes just 24% of total data 23.5 21.2 10 18.7 centre space, which indicates a 16.6 5 sizeable growth opportunity. The opportunity is even larger in 0 APAC, with just 12.1% of total 2007 2008 2009 2010 2011 2012 2013 2014 floor space outsourced In-house Colocation Source: Datacenter Dynamics, Frost & Sullivan

Australia leads the way in data centre outsourcing Outsourcing of Data Centres 250,000 sq metres of outsourced data centre capacity in Australia Western Europe Estimated at 55% of total available data centre space USA 2018 6% growth in available space in 2013 2015 Asia-Pacific Australia is an attractive market for outsourcing due to high Australia power costs, availability of specialist providers 0% 20% 40% 60% 80% Source: Frost & Sullivan, BroadGroup 9

Australian data services revenue to exceed $2 billion by 2021 Australian Data Centre Services Revenue 2,500 12.4% 2,000 12.4% CAGR to exceed A$2 A$ millions billion by 2021 1,500 Fastest growth in managed 1,000 hosting, but co-location will still grow at over 10% CAGR 500 0 2015 2016 2017 2018 2019 2020 2021 Co-location Managed Hosting Source: Frost & Sullivan 10

Frost & Sullivan’s cloud and data centre research agenda Recent Reports • Australian Data Centre Services Market, 2016 • Asia-Pacific Data Centre Services Market (10 countries), 2016 • European Data Centre Services Market, 2016 • Data Centre Benchmarking Strategy Study, 2016 • Global Data Centre Infrastructure Solutions Market, 2016 • Global Modular Data Centre Market, 2016 • Global Power & Cooling in the Data Centre Market, 2015 • Asia-Pacific Cloud Computing Services Market (10 countries), 2016 11

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