[LINK] Cloud Computing Services in Australia?

Tom Koltai tomk at unwired.com.au
Sat Nov 5 11:48:39 AEDT 2011

> -----Original Message-----
> From: link-bounces at mailman.anu.edu.au 
> [mailto:link-bounces at mailman.anu.edu.au] On Behalf Of 
> stephen at melbpc.org.au
> Sent: Friday, 4 November 2011 4:00 PM
> To: link at anu.edu.au
> Subject: [LINK] Cloud Computing Services in Australia?
> The Potential for Cloud Computing Services in Australia
> Lateral Economics 
> <http://www.lateraleconomics.com.au/outputs/The%20potential%20
>02 November 2011
>Cloud computing is a significant opportunity for Australian industry. 
>Ibis World estimated Australian cloud revenues at over $1 billion for 
>2010 and employment at around 4,300 persons.
>When it comes to cloud computing, can Australia reasonably aspire to 
>become a regional hub for cloud computing? 
>What will determine Australian industry's competitive position in 
>offering cloud computing services and facilities? 
Additional Overseas Fibre.
At this time the exhorbitant cost of transit from anywhere in the world
precludes Australia from effectively being a worldwide leader in the
>To what extent will Australian providers meet Australian demand for

This is a tricky question. What is Cloud computing? Is it a central
repository for all my data that I can access from any device at any
location at high speed ? Because if it is, Rah rah Cloud Computing. I
fear though that the reality of the current pricing policies of existing
mobile broadband carriers precludes cloud computing from operating as it
should for the majority of Australians away from their NBN connections.
(Essentially voiding the value of the consumers perception of cloud

Perception : Gee the Internet (1995) so I can get Porn movies.
The Reality: Mbone globally on a 2 MB backbone. Australia's Connection
to the Net ? (January 1995) 256 Kb.

There is currently in Australia a surplus of Server Farms, especially in
regard to the overhead reduction with the utilisation of the ARM and
My recent estimate is that there approximately 1700 21 RU racks are
powered but unused in Australia.

Whilst Pipe Networks built an excellent peering exchange fabric, the
cost of interconnecting backhauls for most small and medium and service
providers still means that cloud computing won't work economically for
approximately 28% of connected Australians.

To an extent, the NBN should overcome some of the difficulties for those
ISP's that can afford the 800K to connect to all the POI's.

(And yes, this is on Topic. If one is travelling and stays at a hotel
where the connection is to a non POI connected ISP then of course your
cloud data will travel via Pennsylvania or Osaka breaking some time
critical aspects of database applications.)

>Will Australia aspire to its usual back office role - with a few scraps

>badged as local content, or will it aspire to something more?
>Activity to date suggests there is reason for some confidence. If we
>destined to become a cloud computing backwater we'd have seen less 
>investment in cloud infrastructure than we have - for example Macquarie

>Telecom, Fujitsu and Telstra combined have invested nearly $1 billion
>Australian cloud infrastructure. 
>What can and should we do to encourage the nascent cloud computing 
>industry in Australia? ...
The Senator for Communications has already given the industry an
enormous boost by exempting server farms from the forthcoming carbon
This will to an extent level the playing field on an international
basis. It will not however make up for the monopoly pricing regime on
overseas connectivity.
Unless the Government encourages high speed Mobile Broadband at a price
comparable to Disk Storage costs (i.e.: The Cloud Tariff USO), I'm
afraid there is no long term future for cloud computing.

The future of the Cloud is verily tied to :

International capacity
Multi-lateral peering for all
Priority QOS for Cloud Data
Lowered cost base for mobile device access
Ubiquitous access across all providers.

Then we would have a Cloud service next to none.

All of that said, there are pros and cons for Cloud computing. I doubt
anyone in Link who remembers OSLAN or SNA connectivity to a centrally
managed (the Department of IT) Mainframe will be in any hurry to sign up
for "The Cloud".


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