ANZ Cloud Eguide 2016

E-guide
Your Guide to Cloud Computing in Australia/New Zealand

E-guide
In this e-guide
In this e-guide:
Cloud services top priority in

Cloud computing today is in a phase of rapid take-up. Technology as a service
Australian and New Zealand is a top priority for CIOs in Australia and New Zealand, as we reveal in this
enterprises in 2016 guide.
Telstra is transforming Through our own research and local interviews this guide uncovers some of
Australian IT infrastructure
the benefits the cloud brings to organisations in the region.
Australian real estate Read how Telstra is harnessing the cloud in its internal IT transformation and
company goes all in on
why Domain Group has jumped into the cloud. Benefits for the latter include
public cloud
Domain dedicating more IT staff to building website features instead of tasks
such as changing disks and upgrading memory.
Amazon cloud crash forced
Australian enterprises to
take heads out of sand But we also look in detail at some of the risks involved in moving to the cloud
with analysis of the impact of the recent Amazon cloud crash in Sydney. The
A history of cloud computing recent crash has forced enterprises in Australia to rethink their cloud backup
strategies.
Getting more CW+ essential
content This guide also features an in-depth look at the history of cloud computing.
Page 1 of 24
E-guide
In this e-guide

Australian and New Zealand
enterprises in 2016 Karl Flinders, Services Editor
The majority of IT decision makers in Australia and New Zealand (ANZ) will
Telstra is transforming
increase their spending on cloud services in 2016 with hybrid cloud
infrastructures planned, according to research from Computer Weekly parent
company TechTarget.
Australian real estate
A total of 59% of ANZ-based respondents to the global survey of IT decision
public cloud
makers said their cloud computing budget would be higher in 2016 than in 2015.
Amazon cloud crash forced This compared with 38% who said the software budget would increase, 35%
Australian enterprises to who expect bigger IT staffing budgets and 28% who expect to have more
take heads out of sand money for hardware.
A history of cloud computing In terms of overall budget, the survey revealed that 48% of IT leaders in the
ANZ region expect the IT budget to rise, while 25% expect it to stay the same
and 15% expect a reduction.
content
When it comes to planned cloud investments, the most common project being
planned around cloud computing was the implementation of a hybrid cloud
infrastructure (46%). These organisations opt for hybrid cloud services that
Page 2 of 24
E-guide
enable them to buy some processing power upfront and rent more when
In this e-guide needed.
Cloud services top priority in Speaking to Computer Weekly in October 2015, Telsyte analyst Rodney Gedda
Australian and New Zealand said hybrid cloud offers an optimised computing environment for most
enterprises in 2016 enterprises in Australia. Therefore, IT professionals will need to perform
integration to allow public and on-premise or private cloud to sensibly co-exist.
Australian IT infrastructure He added that unlike public cloud, which could be bought by anyone in the
enterprise, effective hybrid cloud deployments need the IT department and
business teams to co-
public cloud said.
The TechTarget survey revealed that 19% of ANZ IT decision makers plan a
private cloud project in 2016, while 17% plan virtual desktop infrastructure
take heads out of sand
project.
A history of cloud computing Next article

content
Page 3 of 24
E-guide
In this e-guide

enterprises in 2016 Karl Flinders, Services Editor
Global
Enterprise and Services businesses-to-business (B2B) unit, which
supplies services to large enterprise market internationally. The project will see
the overall company become cloud first with a focus on better use of data and
application programming interfaces (APIs).
public cloud
The IT transformation project will be phased in over two years as the company
tries to minimise disruption to customers on legacy platforms.
Australian enterprises to The Intern
take heads out of sand 44% last year and has sales worth AUD 1.3bn, serves a customer base of
enterprises and governments, largely in Asia.
A history of cloud computing
It provides technology including data and IP networks as well as network
application services, such as managed networks, unified communications and
content cloud services. It also has interests in software, video delivery, online sales and
e-health.
Page 4 of 24
E-guide
In this e-guide positioned to support group adoption of modern technologies such as cloud
computing, business intelligence and artificial intelligence.
enterprises in 2016 which covers services such as fixed voice, mobile, PSTN and NBN across the
consumer, small business and large enterprise markets. Telstra has 35,000
Telstra is transforming employees, including more than 3,000 across 20 countries outside of Australia.
The retail and International businesses used to operate autonomously, but after
a move to the cloud its B2B operations, it was decided to do the same for the
company goes all in on whole company.
public cloud
-wide IT strategy and is organised in business
Sundi Balu, CIO at Telstra International.
-centric, cloud-based and API-
heads IT in the retail business.
from vertically integrated groups to engagement groups and platform

Getting more CW+ essential capabilities to deliver reusable engines developed and prioritised based on
content
three years ago, we completed a transformation internationally where we put
Page 5 of 24
E-guide
most of the capability in the cloud, with an API-centric, data-

In this e-guide d becoming a truly global
organisation so customers have a seamless experience no matter where they
Before the B2B operation completed its transformation, it was split among
enterprises in 2016
several regions.
Australian IT infrastructure Australia, with about 2,000 IT staff overall. Last year, Telstra B2B acquired
Asian telecoms company Pacnet, which increased the scale and scope of its
Australian real estate international connectivity business and doubled its customer base in Asia.
public cloud Balu said Telstra is going through a similar transformation as its business
Amazon cloud crash forced benefit of capital expenditure savings, cloud computing and software-as-a-
Australian enterprises to service applications are helping us achieve better business agility across our
-facing team members can quickly access secure

cloud-based resources to perform their job through any device and from any
geographical location. This is a major shift from the slower practice of
navigating several secure VPN connections, from desktops back to
content
Artificial intelligence (machine learning) is also enabling Telstra to understand

customer behaviour and helping it ensure that customer service levels are met.
Page 6 of 24
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In this e-guide are able to predict impending failure or the breach of service-level agreements

Australian and New Zealand Australia is a good place to pioneer the use of new technology, he added.
enterprises in 2016
million people in a well-
Next article
public cloud


content
Page 7 of 24
E-guide
In this e-guide

enterprises in 2016 Stuart Kennedy
Online Australian real estate marketing business Domain Group has gone all in
on public cloud, as it looks to respond to a national property boom and
increasingly competitive market with a faster-responding digital platform.
Australian real estate Domain Group is Australia's second-largest real estate marketing business and
is owned by Fairfax Media. It goes head to head with the largest real estate
public cloud
marketing outfit REA Group, majority owned by Fairfax arch-rival News Corp
Australia.
Australian enterprises to It has become a key asset for Fairfax and is valued north of AUD 1bn. Domain
take heads out of sand moving parts include a home listings portal at domain.com.au; a commercial
property portal; a customer relationship management (CRM) and listings
A history of cloud computing management system for estate agencies called My Desktop; and a property
data business called APM Pricefinder, which models projected values for clients.
content Doma
sections, and the operation was formed in 1999 as a response to revenues from
print real estate classified ads beginning to fall to internet ads.
Page 8 of 24
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The Domain platform was first built as a classic application service provider-
In this e-guide style website, CTO Mark Cohen tells Computer Weekly.

Australian and New Zealand a paid model and grew up and became a pretty big beast. But at its core it had
enterprises in 2016
The site was migrated from its original ASP structure to being based on
Australian IT infrastructure Cohen says the move to .Net
was good for growing Domain, but the platform remained a big monolith running
in a datacentre.
Meanwhile, the Australian property market began to boom, especially in the east
public cloud
coast cities of Sydney and Melbourne and the strain began to show on the
Domain platform.
-forward to a time when Domain really started to take off. There were a
out of datacentres, not manage infrastructure, and enable continuous
integr
At the time, Domain was running on virtualised hardware at a Fairfax

Getting more CW+ essential datacentre.
content
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You would have to get capex [capital expenditure] approved and then you
In this e-guide would be billed, and it could take up to six weeks. Even if they already had the
Cloud services top priority in have to do a business case, go through the whole Fairfax approval chain and
they would charge your business unit the cost of the infrastructure. That
enterprises in 2016
Telstra is transforming Public cloud project

Domain was under pressure to get new digital products, services and features
into the market quickly, and wanted to be able to implement continuous
company goes all in on integration with an automated path from development into production.
public cloud

says Cohen.
The group also wanted to get into a system of using microservice architecture
A history of cloud computing proliferation of really small virtual machines as opposed to what you do in a
datacentre, which is having fewer, bigger machines, either virtualised or physical
content
The decision to move all in to a public cloud service was made, and Domain
selected Amazon Web Services (AWS) for the job. The public cloud project
Page 10 of 24
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received broad management support inside Domain and about one-third of the
In this e-guide tech team was committed to the six-month project.

Australian and New Zealand what we were trying to do,
enterprises in 2016
The Domain tech team set about ringfencing its datacentre operations and
migrating everything over to AWS. Domain had to work closely with AWS
Australian IT infrastructure architects, particularly on migrating its primary database on Microsoft SQL
Server into the AWS cloud. In late 2013 when the move to AWS began this
was a rare and tricky procedure for a business the size of Domain.
public cloud
s Cohen.
Amazon cloud crash forced Moving to microservices

take heads out of sand During the migration, Domain set itself up for the future by moving to
These microservices included a login and authentication service which can be

shared around the entire Domain business, such as logging in agents as well as
content
clients of the Pricefinder property valuation business. So far, Domain has
upwards of 40 microservices handling everything from image management to
search.
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Before moving to a microservice architecture, Domain would have to re-release

In this e-guide the entire sight to build in changes, now it does releases just for the changed
microservice pieces.
Australian and New Zealand 40 releases in a
enterprises in 2016
The other benefit is that when pieces of the platform break, Domain rolls
en.
Moving to the cloud has brought a range of benefits for Domain, including faster
deployment of new applications and websites, quicker server response times
public cloud
and more efficient infrastructure scaling. Domain is moving to an autoscaling
model.
Australian enterprises to on-
A history of cloud computing Domain can configure a fresh instance of Windows in 10 minutes, and spin up a
copy of its production environment to test applications against user demands.
Getting more CW+ essential User web page response is 50% faster, and Domain can now dedicate more
content staff to building features instead of tasks such as changing disks and upgrading
memory.
Page 12 of 24
E-guide
Application availability has risen to 99.95% and delivered an 83% decrease in

In this e-guide after-hours service calls to the technology team.
Cloud services top priority in Finally, Domain has learnt from major AWS outages and is changing to a multi-
Australian and New Zealand region scheme to lessen the outage risk and improve security.
enterprises in 2016
Next article

public cloud


content
Page 13 of 24
E-guide
In this e-guide

enterprises in 2016 Beverley Head,
-based cloud was

unavailable for up to 10 hours for some customers after power to the
datacentre was cut during a storm.

platforms are vulnerable to periodic failure, which means enterprise cloud users
public cloud
must still consider business continuity planning particularly for mission-critical
applications.
Australian enterprises to The AWS cloud is used by Australian organisations such as the Commonwealth
take heads out of sand Bank, accounting software business MYOB and ad trading platform
Brandscreen, and to host the popular consumer game, Fruit Ninja.
While Fruit Ninja players might have been momentarily frustrated by being
unable to blow up a banana, business service disruption is far more serious, and
content the incident served as a reminder that enterprises cannot ignore business
continuity planning even if they have signed up for cloud.
shows that the EC2 instance on the Sydney cloud was down for about two
Page 14 of 24
E-guide
hours during the storm, with knock-on effects for other Amazon cloud services,
In this e-guide such as Redshift, Elastic Beanstalk, the Storage Gateway and Cloud Formation.
After 10 hours, most of the issues had been resolved.
Australian and New Zealand Five days after the outage, Amazon released a post mortem of the incident,
enterprises in 2016 which said that the electricity substation feeding the datacentre was blacked
Australian IT infrastructure Even after power was restored, a soft
software meant that recovery was slower than predicted for customers.
AWS has apologised to customers for the inconvenience and is now overhauling
its power supply infrastructure and software to reduce the chances of it
public cloud
happening again.

Australian enterprises to across multiple availability zones in the region were able to maintain availability
throughout the event. For customers that need the highest availability for their
applications, we continue to recommend running applications with this
Getting more CW+ essential But that would not have been an option for customers with data sovereignty
content concerns because AWS does not have datacentres in multiple locations in
Australia, only in the Sydney area.
Page 15 of 24
E-guide
Ostrich approach
In this e-guide
According to Gartner research director Olive Huang, too many companies take
enterprises in 2016 loud very ill-
Huang said that although IT departments running in-house systems might have
Australian IT infrastructure business continuity and disaster recovery plans designed around the degree of
systems failure a business could tolerate, that was often lacking when
companies bought cloud.
The problem is compounded because cloud services are often bought not by IT,
public cloud
but by the business, so much less thought is put into business continuity, she

Australian enterprises to Alan Trefler, founder and CEO of Pegasystems, believes cloud computing has
an important role to play in many enterprises Pegacloud runs on the Amazon
cloud but warns that it is not a panacea for all business needs.
Speaking to Computer Weekly at Pegaworld in Las Vegas, he said:
Getting more CW+ essential the cloud in all sorts of bizarre and fantastic not in a good way
content
Trefler warned that although cloud had a role particularly hybrid solutions
blending private, public clouds and on-premises solutions it should not be
considered a panacea for effective computing strategies.
Page 16 of 24
E-guide
In this e-guide
Cloud services top priority in So for Netflix, for example, a cloud failure might require people to restream
Australian and New Zealand videos, but it is not an insurmountable problem. But for medical applications that
enterprises in 2016 link health monitoring devices to a care management platform, loss of cloud
connectivity could be a life or death issue, said Trefler.
Australian IT infrastructure Pegasystems has 100 users of its Pegacloud internationally, 10 of which are
based in Australia and include banks and governments, according to Scott
Leader, managing director of Pegasystems ANZ. When the AWS Sydney cloud
company goes all in on he said.
public cloud Julian Anderson, head of digital innovation and IT strategy for insurance giant

Australian enterprises to would be more of a problem for a bank rather than an insurance company.
people can continue to work without cloud connection, and then back up the
Getting more CW+ essential This raises a second business continuity issue. Even if the underlying cloud
content platform is working, unless communications networks are available, consumers,
recent network collapse left many people unable to connect to cloud services
for hours.
Page 17 of 24
E-guide
and that
In this e-guide
Cloud services top priority in Paid less attention

enterprises in 2016 The reason enterprises paid less attention to business continuity planning when
using cloud rather than in-
supplier marketing machine and the thought that they are so big that if they do
For companies that are researching the reliability of public cloud,

CloudHarmony offers a dashboard for various suppliers and regions around the
world. The service gives a helicopter view of the quality of cloud currently on
public cloud
offer but cannot predict one-off ev -
on effects for AWS users.
Australian enterprises to Amazon has promised to raise its game, however.
A history of cloud computing fied with

operational performance that is anything less than perfect, and we will do
Getting more CW+ essential everything we can to learn from this event and use it to drive improvement
content
Next article
Page 18 of 24
E-guide
In this e-guide

Arif Mohamed,
enterprises in 2016 Cloud computing has evolved through a number of phases which include
grid and utility computing, application service provision (ASP), and Software
Telstra is transforming as a Service (SaaS).
But the overarching concept of delivering computing resources through a global
Australian real estate network is rooted in the sixties.
public cloud The idea of an "intergalactic computer network" was introduced in the sixties by
J.C.R. Licklider, who was responsible for enabling the development of ARPANET
(Advanced Research Projects Agency Network) in 1969.
His vision was for everyone on the globe to be interconnected and accessing
programs and data at any site, from anywhere, explained Margaret Lewis,
product marketing director at AMD. "It is a vision that sounds a lot like what we
are calling cloud computing."
Getting more CW+ essential Other experts attribute the cloud concept to computer scientist John McCarthy
content who proposed the idea of computation being delivered as a public utility, similar
to the service bureaus which date back to the sixties.
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Since the sixties, cloud computing has developed along a number of lines, with
In this e-guide Web 2.0 being the most recent evolution. However, since the internet only
started to offer significant bandwidth in the nineties, cloud computing for the
Cloud services top priority in masses has been something of a late developer.
enterprises in 2016 One of the first milestones in cloud computing history was the arrival of
Salesforce.com in 1999, which pioneered the concept of delivering enterprise
Telstra is transforming applications via a simple website. The services firm paved the way for both
Australian IT infrastructure specialist and mainstream software firms to deliver applications over the
internet.
company goes all in on The next development was Amazon Web Services in 2002, which provided a
public cloud suite of cloud-based services including storage, computation and even human
intelligence through the Amazon Mechanical Turk.
Then in 2006, Amazon launched its Elastic Compute cloud (EC2) as a
commercial web service that allows small companies and individuals to rent
computers on which to run their own computer applications.
A history of cloud computing "Amazon EC2/S3 was the first widely accessible cloud computing infrastructure
service," said Jeremy Allaire, CEO of Brightcove, which provides its SaaS online
Getting more CW+ essential video platform to UK TV stations and newspapers.
content
Another big milestone came in 2009, as Web 2.0 hit its stride, and Google and
others started to offer browser-based enterprise applications, though services
such as Google Apps.
Page 20 of 24
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"The most important contribution to cloud computing has been the emergence
In this e-guide of "killer apps" from leading technology giants such as Microsoft and Google.
When these companies deliver services in a way that is reliable and easy to
Cloud services top priority in consume, the knock-on effect to the industry as a whole is a wider general
acceptance of online services," said Dan Germain, chief technology officer at IT
enterprises in 2016
service provider Cobweb Solutions.
Telstra is transforming Other key factors that have enabled cloud computing to evolve include the
Australian IT infrastructure maturing of virtualisation technology, the development of universal high-speed
bandwidth, and universal software interoperability standards, said UK cloud
Australian real estate computing pioneer Jamie Turner.
public cloud Turner added, "As cloud computing extends its reach beyond a handful of early-
adopter Google Docs users, we can only begin to imagine its scope and reach.
Amazon cloud crash forced Pretty much anything can be delivered from the cloud."
Following the cloud
"Many IT professionals recognise the benefits cloud computing offers in terms

A history of cloud computing of increased storage, flexibility and cost reduction," said Songnian Zhou, chief
executive officer of Platform Computing.
content But he added that IT directors still have concerns about the security of their
corporate data in the cloud. This means that it will be 2010 at the earliest before
cloud adoption sees increased growth.
Page 21 of 24
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Julian Friedman, a specialist in emerging technologies, said that security and

In this e-guide other concerns will soon be resolved.
Cloud services top priority in "Considerations such as security, data privacy, network performance and
Australian and New Zealand economics are likely to lead to a mix of cloud computing centres both within the
enterprises in 2016 company firewall and outside of it."
He added that today's applications will naturally move towards a cloud model as
Australian IT infrastructure they become more pervasively available through the web, require more data
processing, and span the boundaries of multiple devices.
Experts seem to agree that cloud computing will ultimately transform today's
computing landscape.
public cloud
Andreas Asander, vice-principal of product management at virtualisation

Amazon cloud crash forced security specialist Clavister, said that once the security issues are resolved,
Australian enterprises to cloud computing services "can enable an enterprise to expand its infrastructure,
add capacity on demand, or outsource the whole infrastructure, resulting in
greater flexibility, a wider choice of computing resources and significant cost
A history of cloud computing savings."
Getting more CW+ essential It is clear that cloud computing can bring enormous benefits for IT users.
content
However, the bottom line for IT directors is that they will need to continue to
manage their internal computing environments, whilst learning how to secure,
Page 22 of 24
E-guide
manage and monitor the growing range of external resources residing in the
In this e-guide cloud.

Australian and New Zealand Next article
enterprises in 2016

public cloud


content
Page 23 of 24
E-guide
In this e-guide

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E-guide

Your Guide to Cloud Computing in Australia/New Zealand

Cloud services top priority in

Cloud services top priority in

A history of cloud computing Next article

Getting more CW+ essential

Cloud services top priority in

A history of cloud computing

from vertically integrated groups to engagement groups and platform

three years ago, we completed a transformation internationally where we put

most of the capability in the cloud, with an API-centric, data-

-facing team members can quickly access secure

Artificial intelligence (machine learning) is also enabling Telstra to understand

Cloud services top priority in

Amazon cloud crash forced

A history of cloud computing

Getting more CW+ essential

Cloud services top priority in

Cloud services top priority in

At the time, Domain was running on virtualised hardware at a Fairfax

Telstra is transforming Public cloud project

Amazon cloud crash forced

Cloud services top priority in

Amazon cloud crash forced Moving to microservices

A history of cloud computing

These microservices included a login and authentication service which can be

Before moving to a microservice architecture, Domain would have to re-release

Application availability has risen to 99.95% and delivered an 83% decrease in

Australian real estate

Amazon cloud crash forced

A history of cloud computing

Getting more CW+ essential

Cloud services top priority in

-based cloud was

Australian real estate

Amazon cloud crash forced

Amazon cloud crash forced

Amazon cloud crash forced

Cloud services top priority in Paid less attention

For companies that are researching the reliability of public cloud,

A history of cloud computing fied with

Cloud services top priority in

"Many IT professionals recognise the benefits cloud computing offers in terms

Julian Friedman, a specialist in emerging technologies, said that security and

Andreas Asander, vice-principal of product management at virtualisation

Cloud services top priority in

Australian real estate

Amazon cloud crash forced

A history of cloud computing

Getting more CW+ essential

Cloud services top priority in

Australian real estate

A history of cloud computing

Getting more CW+ essential

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