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Singaporean businesses working with too many cloud providers: Telstra study

Zafirah Salim | March 11, 2015
This results in a complex cloud environment that may hinder business agility and speed to market.

Despite three-quarters of IT decision makers in Singapore wanting to procure all cloud services from a single provider, the majority have purchased offerings from three vendors, according to a new Telstra study.

With consumers in Singapore more in control of their purchasing power than ever before, a flexible and scalable cloud infrastructure has become increasingly critical to an organisation's success or failure, said Martin Bishop, Head of Network, Applications & Services, Telstra Global Enterprise & Services.

"We are living in a buyers' market and our research suggests that in an effort to satisfy diverse customer expectations, many businesses in Singapore initially turn to multiple cloud vendors to meet their various infrastructure needs," he added. "The result can be a complex cloud environment that is hard for the business to manage, integrate and control."   

In addition, the study also revealed that pooling resources into a single private cloud is not ideal either, as majority of IT decision makers argue that this model fails to deliver the flexibility required for the varying types of processes, services and workloads that global companies must support.

The trend now is leaning towards the hybrid approach, delivered by a single partner, fully accountable for an organisation's cloud services end-to-end. The flexibility and scalability associated with a hybrid cloud are what local IT leaders consider the most appealing benefits of this model, according to the study.

This is supported by another finding which revealed that 76 percent of Singapore's IT decision makers would prefer a single provider or broker for all cloud services, than go through the challenge of managing multiple vendors.

IaaS adoption in Singapore

While 44 percent of enterprises in Singapore have adopted IaaS - with almost half of them (48 percent) planning to adopt it in the near future - cloud providers can do more to guide businesses on their IaaS migrations.  

Adoption of IaaS also varies widely by industry, with manufacturing (61 percent), professional services (54 percent), and the finance and insurance sectors (46 percent) most likely to be using the technology. Conversely, the higher education sector has been the least likely to adopt IaaS, with more than a quarter (27 percent) having no implementation plans at this stage.

"Organisations that do not use IaaS could be falling behind their competitors - leaving themselves exposed to inefficiencies, high costs and without the ability to fully utilise critical information and data," said Bishop. "Each of these issues is not just important from an IT perspective, but also has significant implications for the wider business and the end customers."

As businesses look to expand outside Singapore to new and emerging markets throughout Asia and around the world, Telstra's research found 63 percent of respondents would opt to use a global rather than local service provider, with only 23 percent preferring this option.  


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