Australia's cloud market size to boom to $11 billion by 2023
Boston Consulting Group (BCG) expects the public cloud market in Australia to surpass the $10 billion mark by as early as 2023, providing a significant contribution to job creation in the country.
In an analysis focused on the Asia-Pacific (APAC) cloud market, the researchers conclude that six major APAC economies – Australia, India, Indonesia, Japan, Singapore and South Korea – are all likely to see their public cloud space grow in the next four years.
Cumulatively, this growth will add $450 billion to the regional economy, with Australia described as one of the region's most advanced cloud markets.
Having seen for themselves the boosts in productivity that cloud technology can bring, business leaders across Australia have been increasingly receptive to investing in the cloud, driving considerable growth in the segment. Up to 2023, Australia’s public cloud market is expected to grow at a compound annual growth rate (CAGR) of 17%.
According to BCG, government efforts to promote cloud adoption has been among the primary drivers of growth. Alongside examples of the public sector itself adopting cloud technology to improve operations, the government has also brought clarity to the regulatory environment surrounding cloud technology, making it easier to migrate to cloud networks.
The business environment has responded strongly. Some of the sectors where cloud is playing the biggest role include media & gaming, retail & consumer, financial services and the public sector. The mining sector in Australia, which is among the largest in the world, is also showing strong interest in cloud technology.
The government’s cloud-first policy combined with this increase in interest across industry has helped create considerable value. In the lead up to 2023, BCG expects cloud technology to add some $108 billion in economic value to Australia’s GDP – an amalgamation of direct and indirect influences.
Over the same period, growth in the public cloud market is expected to generate as many as 73,000 jobs in the country, which, according to BCG, equates to nearly 1% of Australia’s current workforce.
Part of the cloud boom will come on the back of a shift in attitude towards cloud technology. Where most transitions to the cloud have previously been driven by the desire to cut costs, businesses are beginning to recognise the speed, flexibility and security with which they can develop products and services using cloud technology.
“Many advanced users of the public cloud see agility as the most important benefit. As a highly developed market, Australia has many businesses that value the fast time to market that the public cloud makes possible. The time it takes to research newer digital products is much shorter than it would be otherwise; they can test early stage iterations of products at a lower cost, then receive quick feedback and quickly launch a completed version,” stated BCG's researchers in the report.
“The ability to try, and fail fast, with newer products, services, or business models gives a significant advantage to digital businesses, whether they are startups or new digital models for established companies,” the authors added.
Nevertheless, progress in the public cloud market is not likely to be without its barriers. BCG has identified several challenges that could hinder progress, including the cost of legacy migration, gaps in organisational structures and operations, as well as the complexity of managing a multi-cloud environment.
