Global Study Reveals Australian and New Zealand Businesses Gaining Digital Momentum, but Struggle with Optimal Strategy

34% of enterprises have moved workloads from public cloud back on-premises

SYDNEY — July 20, 2017  Pure Storage (NYSE: PSTG), the market’s leading independent all-flash data platform vendor for the cloud era, has today launched Evolution, a global research survey that found digital transformation is reaching a tipping point across Australia and New Zealand (ANZ), along with the rest of the world, with 57% of businesses across ANZ, and 46% of businesses across the Asia Pacific and Japan (APJ) region, now deriving more than half their revenue from digital streams.

Emerging technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and machine learning have changed the way businesses operate and what it takes to thrive in a digital economy. The independent survey of IT leaders in more than 9,000 businesses globally, including over 3,000 organisations in APJ and 500 in ANZ, found that 52% of businesses in ANZ are looking to digital services to drive faster innovation, while 44% believe digital services can help them determine new potential business models.

Against this digital gold rush, businesses across ANZ are still unsure about the optimal IT strategy that underpins their move to digital, and who is responsible for it.

●      On-premises solutions are most favoured by ANZ enterprises. 40% of businesses in ANZ run their applications and storage on-premises – higher than public cloud (27%), SaaS (24%), and private cloud (25%).

●      Companies in Australia and New Zealand are on the fence about cloud. 50% of businesses plan to move their business critical workloads to public cloud in the next 18-24 months, with the rest planning to adopt private cloud solutions.

●      34% of ANZ enterprises have moved workloads from public cloud back on-premises. The biggest concern against public cloud use is security (57%).

●      IT departments in ANZ have some of the strongest influence compared to their neighbours. Some 38% of IT say they are the only ones in their organisations involved in major technology decisions, compared to just 26% across APJ.

“Australian and New Zealand businesses have faced a colossal shift in infrastructure in light of digital transformation over the last few years. But this drive to digital hasn’t translated into a headlong rush to public cloud, like in other regions, making it clear that organisations across ANZ are being thoughtful about how they store, collect, and use data,” said Mike Sakalas, Regional Vice President, Pure Storage Australia and New Zealand. “Local enterprises are learning that if they want to build out a new class of web-scale applications and leverage the latest in predictive analytics, AI, and machine learning, they need the right data strategy and platform.”

The 2017 Evolution survey also highlights interesting points across APJ:

●      Public cloud is poised to grow in APJ. 54% of APJ businesses plan to increase public cloud usage over the next 18-24 months, compared to 58% in Europe, Middle East, and Africa, and 69% in North America.

●      Despite strong indications of public cloud growth, 38% of APJ companies that ran workloads in public cloud environments have moved some or all of those workloads back on-premises. 29% also say they have reduced use of public cloud in the past 12 months because of security concerns.

●      74% of IT departments in APJ businesses report losing influence over key technology decisions in their organisation, with their colleagues in product management, customer service, and marketing having significantly more influence over these decisions.

●      78% of Vietnamese businesses say they have moved workloads from public cloud back on premises, the highest in the APJ region. A significant 48% of Thai businesses said they have moved workloads away from the public cloud in the past 12 months due to security concerns.

“It’s clear that digital transformation is no longer just a buzzword, it’s actually happening. This transformation will affect all businesses across the region in the coming years, forcing them to reconsider how and when they collect and use data,” said Michael Alp, Regional Vice President, Pure Storage Asia Pacific and Japan. “The advantages once held by the public cloud are no longer its sole domain. Businesses need to understand how to use the entire data ecosystem — cloud and on-premises — in order to put their data to work and mine insights to deliver customer results.”

For more on this year’s Evolution survey, check out the full survey results here.

 

About Pure Storage

Pure Storage (NYSE:PSTG) helps companies push the boundaries of what’s possible. Pure's end-to-end data platform - including FlashArray, FlashBlade and our converged offering with Cisco, FlashStack – is powered by innovative software that’s cloud-connected for management from anywhere on a mobile device and supported by the Evergreen business model. The company’s all-flash based technology, combined with its customer-friendly business model, drives business and IT transformation with solutions that are effortless, efficient and evergreen. With Pure's industry leading Satmetrix-certified NPS score of 83.5, Pure customers are some of the happiest in the world, and include organizations of all sizes, across an ever-expanding range of industries.

 

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