Instead of battling with public and private cloud trade-offs, more organisations are turning to a hybrid cloud model, according to Gartner.
The research firm predicts almost half of large enterprises globally will have deployed hybrid cloud by the end of 2017, with 2016 being a "defining" year where they will start to move away from private into hybrid.
Vice president and Gartner Fellow David Smith said private cloud is currently the most popular form of cloud computing across various industry sectors, but that could change as businesses are starting to see that it is not appropriate for all services.
"There is a flawed perception of cloud computing as one large phenomenon," said Smith.
"Cloud computing is actually a spectrum of things complementing one another and building on a foundation of sharing. Inherent dualities in the cloud computing phenomenon are spawning divergent strategies for cloud computing success.
"The public cloud, hybrid clouds, and private clouds now dot the landscape of IT based solutions. Because of that, the basic issues have moved from 'what is cloud' to 'how will cloud projects evolve'."
Cloud computing will be the bulk of new IT spend by 2016, Gartner said. Cloud services revenue in Australia is projected to have a five-year projected compound annual growth rate (CAGR) of 15.3 per cent from 2012 to 2017. Software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS) will have higher projected CAGR growth rates of 23.6 per cent and 24.5 per cent.
"Cloud computing continues to grow at rates much higher than IT spending generally. Growth in cloud services is being driven by new IT computing scenarios being deployed using cloud models, as well as the migration of traditional IT services to cloud service alternatives," said Ed Anderson, research director at Gartner.