The Future of Cloud Computing: Trends and Progress in Australia

Cloud computing has evolved into a significant driver of efficiency and innovation for businesses across the globe. In Australia, the adoption of cloud computing has been on a continuous upswing, gaining endorsement from the government. This article explores Australia's efforts to facilitate the transition of organisations and individuals to the cloud, the strategies being implemented, and the future of cloud computing.

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Understanding cloud computing

Cloud computing is the practice of accessing computing resources without the need for physical infrastructure. It relies on servers, software, and applications available on a pay-per-use basis.

This approach is particularly appealing to both businesses and individuals who seek to reduce the burden of costly hardware maintenance. The pay-as-you-go nature of cloud computing also allows users to easily scale their operations as needed. The convenience and cost-effectiveness of cloud computing have revolutionised data management for organisations worldwide, making it accessible without location or hardware constraints.

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Australia's shift toward cloud computing

Since 2013, the Australian government has openly expressed its commitment to a "cloud-first" strategy. As part of the 2021 Secure Cloud Strategy , the government aimed to accelerate service delivery, continuous improvement, and broader service accessibility by embracing cloud technology. This strategy envisions faster internet speeds, improved scalability, and greater accessibility, laying the foundation for a cloud-driven future.

Concrete steps have been taken to encourage cloud adoption. By 2025, Australia is expected to invest over $14 billion in cloud computing , encompassing private networks and public services, including Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS). Tech giants like Microsoft and Google are already vying for dominance in this burgeoning market.

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Australia's cloud computing policies and recommendations

To safeguard the growing number of cloud service consumers, Australia has implemented several policies and recommendations.

These include:

• Australian Consumer Law (ACL): This law holds cloud service providers accountable for data protection and penalises them for making false security claims.
• Australian Privacy Principles (APP) : Under the Australian Privacy Act 1988, businesses are required to protect users' personal information. While there may be exceptions for small providers, adhering to APP guidelines is strongly advised.
• Australian Cyber Security Centre (ACSC) Essential Eight : This list comprises eight controls that cloud-based businesses should implement to enhance their security, including multi-factor authentication and regular backups.
• Australian Signals Directorate (ASD) Cloud Computing Security Considerations : This framework primarily targets agencies planning to migrate to the cloud, offering cybersecurity recommendations to assess potential providers.

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Challenges facing cloud computing in Australia

Despite the benefits of cloud computing, Australia faces several challenges associated with cloud migration, including:

• IT skills shortage: As technology's pivotal role in Australia's industries grows, so does the demand for skilled professionals. However, a severe skills shortage plagues the nation, with an anticipated need for an additional 370,000 tech positions. This shortage, highlighted in the AIIA Digital State of the Nation 2023 report , is particularly acute in sectors where expertise is in high demand. Skill shortages, currently the top impediment to business growth at 44%, are driving 50% of Australian enterprises to outsource IT roles globally, with AI (56%) and cybersecurity (40%) among the most outsourced skill sets. It’s here that IT outsourcing will provide a key solution to tackle this challenge.
• Data security concerns: Data security has received significant attention due to sensitive data concerns, highlighted by the government’s migration from Global Switch in Sydney . Protecting sensitive data from unauthorised access remains a top priority.
• Geographic challenges: Data centres play a vital role in cloud services, impacting connection speed and stability. Geographic distribution is a concern, as data centres concentrated on the East Coast have limited access for users on the West Coast. Efforts to expand cloud infrastructure to underserved regions are underway, aiming to achieve nationwide cloud accessibility.
• Climate unpredictability: Australia's unpredictable weather poses risks to data centres. As weather-related incidents become increasingly severe and unpredictable, strategic data centre locations and technology vulnerability risk assessments become imperative.

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The future of cloud computing in Australia

Australia's push for cloud migration is in full swing, with efforts to distribute services more evenly across the country. The next few decades are likely to see significant growth in cloud computing, both in popularity and security. While challenges will persist, regulatory support from the Australian government and evolving cloud technologies ensure a promising future.

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Global cloud computing trends

Worldwide, business spending on cloud computing infrastructure is projected to exceed US$1.3 trillion in 2024 , growing to US$1.8 by 2025. This growth is driven by the need to adopt new platforms and as-a-service offerings, including artificial intelligence (AI) services .

Several significant trends will shape the cloud computing landscape in the coming years:

• IT skills outsourcing: Amidst Australia's IT skills shortage, IT outsourcing has emerged as a vital solution, particularly for small to medium-sized businesses. With an expected demand for an extra 370,000 tech professionals, outsourcing provides access to a critical talent pool, enabling businesses to bridge the skills gap efficiently while focusing on core operations and innovation.
• AI As-A-Service: Cloud infrastructure will democratise access to AI services, enabling businesses to harness the transformative power of AI without extensive resources.
• Hybrid and multi-cloud: The adoption of multi-cloud strategies will rise, offering cost and flexibility advantages while requiring effective data governance.
• Edge computing everywhere: Smaller, more efficient processors and advanced networks like 5G will make edge computing increasingly viable for various applications.
• Simplified cloud computing: Low-code/no-code tools and user-friendly interfaces will democratise the deployment and management of cloud services.
• Real-time data and streamed data: Businesses will prioritise instant access to real-time data and streamed data, driving demand for storage solutions like Flash and solid-state storage devices.
• Serverless and pay-as-you-go cloud: Serverless models will continue to gain popularity, enabling businesses to pay only for the resources they use.
• Cloud-driven innovation and transformation: Cloud computing will serve as a gateway to emerging technologies such as the Internet of Things (IoT), blockchain, and quantum computing, empowering quick-win initiatives and fostering innovation.
• Cloud security and resilience: Data thefts and breaches are on the rise, emphasising the importance of encryption, authentication, and disaster recovery in cloud services.
• Privacy in the cloud: The privacy implications of data passing to third-party cloud service providers will remain a key concern for businesses.
• Sustainable cloud computing: Major cloud providers are committed to reducing their environmental impact by achieving net-zero emissions and sourcing 100% of their energy from renewables.

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The future of cloud computing in Australia is characterised by rapid growth and government support. Australia's cloud-first strategy, coupled with regulatory frameworks and security measures, paves the way for a robust cloud ecosystem. As cloud infrastructure becomes more distributed, the country is poised to enjoy the benefits of enhanced accessibility and service delivery.

On a global scale, cloud computing is set to hit unprecedented heights, with businesses capitalising on emerging trends to achieve innovation and agility. AI-as-a-Service will democratise AI, multi-cloud strategies will provide flexibility, and real-time data access will drive demand for advanced storage solutions. Cloud computing is not just a technology; it's an enabler for transformative technologies like IoT, blockchain, and quantum computing.

Clearly, cloud computing is driving a technological revolution, not only in Australia but worldwide. The future holds exciting possibilities for businesses, individuals, and the tech industry as a whole – although the IT skills shortage will no doubt continue to make an impact. As the cloud continues to evolve, its impact on innovation, security, and sustainability will be felt across industries, transforming the way we work, communicate, and interact with technology. The cloud is more than just a service; it's a gateway to a brighter, more interconnected future.

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Otto IT – Specialists in affordable, industry-leading cloud solutions for small and medium sized businesses in Melbourne

In the rapidly evolving landscape of cloud computing, partnering with a reliable and certified MSP is paramount. Our ISO27001 certified MSP in Melbourne stands as the industry leader, offering end-to-end cloud solutions and hosting services combined with the highest international standards for cybersecurity .

With a specialisation in strategic planning, seamless cloud migration, project management, and continuous local IT support, Otto IT empowers your organisation to harness the full potential of the cloud. As the future of business becomes increasingly intertwined with the cloud, trust our expertise to drive your success in this digital age.

If you’d like to find out more about our cybersecurity, cloud management and hosting services, please book an obligation free chat to talk about the future of your business.

We also have some helpful articles on our blog to guide you, including this comprehensive guide to Microsoft Azure .