With Steve Jobs's death sparking more interest in Apple products and services, there is a growing interest among techies and companies in Apple's looming iCloud service.

Before iCloud's formal launch, cloud computing has become a buzzword in the technology world and being pushed as a solution to the high cost of hardware.

Australia, as a first world nation, is fast adapting to cloud computing. According to a study by VMware, 67 per cent of Australian businesses have cloud initiatives in place, up from 60 per cent in 2010.

But cloud computing experts warn that moving everything to the cloud may not be the best option for all businesses.

"It doesn't suit everyone's situation, and we're finding with a lot of customers that the right solution is actually a hybrid - some services in the cloud, some on-premise. That's quite a common result," said Ken Davis, executive director of CodeBlue, the New Zealand cloud services partner of Greentree, a cloud computing firm.

Davis said it is wrong to assume that cloud solutions are cheaper than on-premise solutions. Although initial expenses may be lesser, the business must consider also constant service charges from cloud hosting and Internet service providers.

He urged businesses that are considering shifting to cloud computing from on-premise servers to ask some hard questions from the vendors to make sure they purchase the right solution.

"Let's be honest, the technology industry loves big platform changes, as they get customers to buy all over again. Too often, the self-interested tech zealots talk as though there is only one answer, when in fact there are many answers. You need to be sure you get the answer that's right for you," advised Greentree Chief Executive Officer Peter Dickinson.

Dickinson explained that for businesses that prefer an on-premise option they should ensure that it is an investment rather than a liability. The company must take into account maintenance costs and capacity to add more software if new functions are required. Another major consideration should be the life span of servers.

"Equipment obsolescence is a major selling point for cloud vendors. Get your computing from us, they say, and kiss your hardware problems goodbye. Upgrades and replacements are our problem, not yours. The only hardware you deal with is the means by which you access your data and applications. And what's more, you can access them anywhere, from any Web capable device!" Dickinson quoted the frequent lines of cloud computing providers.

He compares opting for a cloud computing service over on-premise solutions to riding a bus or owning a car. Although using public transport frees a person from the cost of maintenance, it does not give him more options in terms of scheduling trips and destinations.

"You want to be in control of what you're doing, and the bus doesn't always give you that," Dickinson pointed out.

He added that enterprises which prefer Software-as-a-Service (Saas) instead of purchasing software licence may save money but their savings may be consumed over time by monthly rental fees. He added Saas offerings are usually limited, may lack the functionality needed by the user and are under the control of the provider.

"We have customers that run on-premise, and others in public or private clouds, and we offer shared software models as well. The choice is entirely up to the customer," Dickinson said.

It is not only in Australia, but globally that more medium-sized businesses are shifting to cloud services such as Google's Gmail and Microsoft's Office 365 suite. According to research firm Gartner, cloud mail is expected to rise to 20 per cent by end of 2016 from the current 3 to 4 per cent.

In the case of most Australian converts to cloud computing, VMware Australia and New Zealand Managing Director Duncan Bennet said survey results show the business owners view the preference for cloud computing as a strategic business investment rather than a cost-cutting measure.

The growing interest of Australian firms in cloud computing has resulted in the formation last week of OzHub, which is the country's national cloud council made up of Macquarie Telecom, Fujitsu, Infoplex and VMware.

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