Singapore firms want single cloud vendor, but end up with three

Some 76 percent of businesses in Singapore prefer to purchase all cloud services from a single provider but most end up having to manage multiple vendors, reveals a Telstra study.

The majority of businesses in Singapore prefer to purchase all cloud services from a single service provider, but most end up having to deal with three different ones.

This creates a cloud environment that is complex to manage and can drag down their speed to market as well as affect their agility, according to a Telstra study released Monday.

Some 76 percent of IT decision makers in Singapore would rather have a single provider or broker delivering all cloud services than deal with challenge of managing multiple vendor relationships.

"In a move away from private clouds, the trend in 2015 appears to be toward a hybrid approach, delivered by a single partner, fully accountable for an organisation's cloud services end-to-end," said Martin Bishop, Telstra's head of network, applications and services. Having a flexible and scalable cloud infrastructure is increasingly critical, as companies look to gain more control of their purchasing power, he added.

Singapore businesses initially picked up multiple cloud vendors in a bid to fulfil diverse customer expectations and support their different infrastructure requirements. This, however, created a complex cloud environment that was difficult to manage, integrate, and control.

"Our research also reveals that pooling resources into a single private cloud isn't the ideal end-state either, with the majority of IT decision makers arguing this model fails to deliver the flexibility required for the varying types of processes, services, and workloads that global companies must support," Bishop explained.

The Telstra-study was conducted by Vanson Bourne and polled 675 IT decision makers across five countries: Singapore, Hong Kong, Australia, the United States, and United Kingdom. Globally, 73 percent of respondents would rather have a single cloud vendor.

The research further indicated that 63 percent of Singapore respondents would choose to engage a global cloud service provider, while 23 percent preferred the local route. At 51 percent, fewer in Hong Kong preferred a global cloud vendor, with 33 percent indicating a preference for a local service provider.

"Across all industries, competition is both fierce and increasingly international," Bishop said. "Many organizations today want the capability to host data offshore to support business growth and as evidenced in our research, see value in working with providers that are familiar with the various regulation, governance, and legal considerations across the multiple markets they operate in."

According to the study, 44 percent of Singapore businesses had adopted IaaS (infrastructure-as-a-service), while 48 percent had plans to do so in the near future. In Hong Kong, 39 percent had adopted the cloud service with 44 percent planning to do so in future. Over in Australia, these numbers stood at 40 percent and 44 percent respectively.

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(Source: Telstra)

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