According to a new IDC report titled, Cloud for Business - Big Bang Principle but Evolutionary Execution, many large organisations across New Zealand have deployed some degree of virtual private clouds (VPC) or hybrid cloud models. The models often exclude the required cloud attributes such as consumption-based metering or automated self-service provisioning, illustrating the maturity of the New Zealand market.

"Part of this cloud rationing approach is because many organisations are initially transitioning to a hosting model based on their current investments in infrastructure, before embarking on an automated and orchestrated cloud model. Often the first step for organisations is server virtualisation. The limitations and perceived risks associated with public clouds have also driven greater demand for secure private clouds," said Rasika Versleijen-Pradhan, Senior IT Services Analyst, New Zealand IT Services Market.

"The typical pattern suggests that organisations will use private cloud builds as a stepping stone to tap into broader public cloud environments, as technology capabilities mature and security concerns are addressed."

This trend is clearly depicted by the vendors profiled in the report (Datacom, Gen-i, HP, IBM and Unisys) who have all taken similar approaches to the market; moving clients to private/VPC to improve operational efficiencies, and using public cloud services if and when it suits clients.

"To remain competitive many of these traditional IT Service Providers (ITSPs) have simultaneously launched managed services, firstly, as a means of adding higher value beyond the basic Infrastructure as a Service (IaaS), where the hardware is quickly commoditising. Secondly, to take the management of these increasingly complex hybrid environments, away from the client," added Versleijen-Pradhan.

IDC advises that organisations recognise that cloud is simply another sourcing option in the outsourcing mix. Implying that any changes in the delivery model must be undetectable to the customers of the business, who have no interest in what changes have been made to the underlying systems only the outcomes that help them meet their objectives. ITSPs need to take a flexible and incremental approach and realise that not all organisations are "cloud contestants," it's clearly not just a case of cloud for cloud sake.