Enterprises in Australia are rapidly adopting public cloud solutions as the main lever for transforming customer engagement, security, storage and applications, according to a new research report published by Information Services Group (ISG), a leading global technology research and advisory firm.
The 2022 ISG Provider Lens Public Cloud — Solutions and Services report for Australia finds that many companies are partnering with service providers to add new capabilities that help them cut costs, improve operations, address technological change and better serve customers and employees.
“Cloud computing dominates both technology and business in Australia, as it does in most regions,” said Ben Rossiter, technology modernization lead for ISG in Australia. “After years of evolution, the cloud is now at the center of enterprise digital transformations.”
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Australian enterprises face a fragmented provider market when looking for cloud services, as they do in other technology sectors, ISG says. While the market is dominated by global system integrators and consulting firms, there are several local players that can provide valuable skills, capabilities and project outcomes. However, one challenge in working with smaller Australian providers is that some have become acquisition targets of the global giants, the report says.
All three of the world’s major hyperscalers have a significant presence in Australia, creating a highly competitive market for cloud resources, ISG says. Google Cloud Platform and AWS both now have facilities in Sydney and Melbourne, while Microsoft Azure also operates in those cities and recently added a data center in Canberra. All three have continued to expand their footprints and increase available bandwidth. In the current geopolitical environment, China-based cloud providers are not likely to become major players in Australia soon, the report says.
Cloud services are becoming especially critical to Australian enterprises that face challenges in maintaining critical SAP workloads, ISG says. High costs, data-handling issues, skills shortages and change management have led many organizations to implement cloud-based SAP HANA solutions, often engaging with hyperscale providers to address these issues.
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Even though Australia is a global cloud leader, its cloud services market is far from saturated, ISG says.
“The public cloud market in Australia will keep growing and evolving,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “New cloud products and capabilities are announced nearly every day.”
The report also examines other public cloud trends in Australia, such as increasingly automated capabilities and the rising importance of sustainability.
The 2022 ISG Provider Lens Public Cloud — Solutions and Services report for Australia evaluates the capabilities of 36 providers across four quadrants: Consulting and Transformation Services, Managed Public Cloud Services, Hyperscale Infrastructure and Platform Services and SAP HANA Infrastructure Services.
The report names Accenture, AC3, AWS, Deloitte, Google, HCLTech, Infosys, Microsoft, TCS and Wipro as Leaders in two quadrants each. It names Capgemini, DXC Technology, IBM, Kyndryl, PwC and Telstra Purple as Leaders in one quadrant each.
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