New research offers a comprehensive analysis of how enterprises are evolving their cloud strategies to meet business priorities.
According to Forrester’s report The State of Cloud in Australia and New Zealand, 2024 90% of Australian enterprises are leveraging multi-cloud strategies and businesses are demonstrating a commitment to optimising cloud investments despite economic uncertainty.
The research uncovers insights into cloud adoption trends in the region highlighting findings on regulatory shifts, modernisation initiatives, and the evolving role of cloud in enabling innovation, offering a comprehensive analysis of how enterprises are evolving their cloud strategies to meet business priorities.
The developing cloud markets in Australia and New Zealand (ANZ) are challenged by regulatory experimentation and unevenly distributed data centres.
Enterprises are revisiting and refreshing cloud strategies, seeking to optimise investments as their economies grow slowly.
Announcements of new hyperscaler data centers outside of southeastern Australia, along with new tier-two entrants indicate that the next few years will be a time of continued evolution.
Key takeaways from the research:
- Multicloud dominates the landscape: 90% of Australian enterprises using public cloud adopt multicloud strategies to enhance portability, optimise costs, and mitigate vendor risks.
- Modernisation takes centre stage: 14% of Australian cloud decision-makers plan to modernise core applications in 2024 using cloud-native tools like Kubernetes and AI/ML technologies to scale operations and drive efficiency.
- Cloud optimisation rises in priority: Senior executives are increasingly implementing FinOps practices, with some enterprises achieving up to 200% ROI within six months by optimising cloud spending and resource allocation.
- Hybrid cloud strategies gain momentum: Organisations are adopting hybrid cloud models to strike a balance between flexibility and control, enabling seamless data integration across on-premises and cloud environments. This approach allows businesses to meet regulatory compliance while optimising workload performance.
- Data as a strategic asset: Enterprises are leveraging advanced analytics and AI capabilities in the cloud to transform data into actionable insights. This data-driven approach is empowering companies to make faster, more informed decisions, leading to enhanced competitiveness.
- Focus on sustainability: Cloud providers are emphasising green energy initiatives to reduce carbon footprints, with many organisations prioritising eco-friendly cloud solutions to align with sustainability goals and regulatory expectations.
“The presence of major global hyperscalers and their investment in Australia and New Zealand demonstrates the importance of the local market both economically and, increasingly, geopolitically,” said Sam Higgins, Principal Analyst at Forrester and author of the report. “Enterprises in the region are leveraging cloud to enhance resilience, optimise operations, and unlock innovation. However, to achieve sustained success, businesses must focus on rethinking their strategies to capitalise on opportunities like AI advancements and emerging cloud environments.”
