Growing Demand Heats Up Australian Cloud Market

Rhea-AI Summary

According to the latest ISG Provider Lens™ report, Australian enterprises are increasingly adopting private and hybrid cloud solutions to accelerate digital transformation, driven by sustainability, automation demands, and COVID-19 impacts. The report highlights the competitive nature of the Australian cloud market and notes significant infrastructure growth beyond major cities. It emphasizes the urgent need for companies to invest in automation to address the IT skills shortage, while also focusing on sustainability. Telstra is recognized as a leader in all service quadrants.

Positive

• Growing demand for hybrid IT, colocation, and managed hosting services fueled by digital transformation.
• Australia's cloud market is highly competitive, prompting providers to enhance service offerings.
• Investment in sustainable data center solutions is increasing, aligning with government objectives.

Negative

• Severe shortage of IT and cloud-skilled professionals hampers growth.
• Pandemic effects have disrupted supply chains and customer behaviors, affecting business agility.

More companies are adopting private/hybrid clouds as they accelerate digitalization, automation and sustainability drives, ISG Provider Lens™ report says

SYDNEY--(BUSINESS WIRE)-- Australian enterprises are adopting private and hybrid cloud models faster than ever before as they accelerate their digital transformations, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Services & Solutions report for Australia finds demand for hybrid IT, colocation and managed hosting services is increasing due to a range of factors, including ongoing digitalization, sustainability efforts, demand for automation and the effects of the COVID-19 pandemic. A vast, growing array of providers is meeting this demand.

“Australia is arguably the most competitive cloud services market in the world,” said Scott Bertsch, partner and regional head, ISG Asia Pacific. “Demand is growing, and all types of providers are stepping up to meet it.”

The Australian data center landscape has grown beyond its traditional hubs in Sydney and Melbourne as global, national and regional providers open facilities in many state capitals. To be leading players, providers now have to cover at least four of the country’s major markets, ISG says. Investment in localized solutions is expected to keep increasing as demographic shifts make smaller regions more important.

The effects of the pandemic on customer behavior, supply chains and other aspects of business have sharpened Australian companies’ need for data center solutions to make them truly digital. This trend will continue because the road to digitalization is a “one-way street,” the report says.

Data centers are also at the center of Australia’s increasing trend toward sustainability, which is fueling a move to greener data center locations, energy systems and management, ISG says. Sustainability is a major objective for both enterprises and state governments, and the recently elected national government is likely to increase sustainability requirements. Enterprises are seeking cloud providers that share their green goals.

Like many countries, Australia faces a severe shortage of professionals with essential IT and cloud skills, the report says. Unemployment is at or near record lows, and migration into Australia has slowed because of the pandemic. Both enterprises and providers will need to develop and attract new talent while also using technology to reduce the need for workers, ISG says.

“Australian companies need to invest more in automation to have even a remote chance of meeting the skills gap,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.

The report covers a wide range of cloud-related trends in Australia, which also include the emergence of enterprise edge computing and the growing availability of industry-specific cloud solutions.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Services & Solutions report for Australia evaluates the capabilities of 43 providers across three quadrants: Managed Services, Managed Hosting and Colocation Services.

The report names Telstra as a Leader in all three quadrants. It names Fujitsu and Kyndryl as Leaders in two quadrants each. Accenture, Datacom, Digital Realty, Equinox, HCL, Infosys, Macquarie Telecom, NEXTDC, NTT DATA, Optus, TCS, Vocus and Wipro are named as Leaders in one quadrant each.

In addition, CDC Data Centres, Datacom and Rackspace Technology are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Services & Solutions report for Australia is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220713005960/en/

Press:



Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com



Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What does the latest ISG report say about the hybrid cloud market in Australia?

The ISG report reveals a rapid shift towards private and hybrid cloud solutions among Australian enterprises, driven by digital transformation, automation, and sustainability initiatives.

Who are the leaders in the Australian cloud services market according to the ISG report?

Telstra is named a leader in all three quadrants of the ISG report, with Fujitsu and Kyndryl leading in two quadrants each.

What are the key trends in the Australian cloud services market as per the ISG Provider Lens research?

Key trends include increased demand for automation, sustainability in data centers, and a competitive cloud services landscape.

How many providers does the ISG report evaluate in the Australian market?

The ISG report evaluates the capabilities of 43 providers across three quadrants: Managed Services, Managed Hosting, and Colocation Services.

What challenges are Australian enterprises facing in the cloud space?

Australian enterprises are facing a significant shortage of IT and cloud professionals, necessitating investment in automation to bridge the skills gap.