VISITS News and Insights

Public Cloud Adoption in Australia and New Zealand Creates Multi-Billion-Dollar Opportunity for Adopters and Suppliers

Written by Daniel MacNish | 9 Feb 2025

In the not-too-distant future, public cloud adoption will not only shape the IT landscape but also create unparalleled opportunities for those who embrace it. By 2026, public cloud adoption is expected to generate billions of dollars in new revenue for organisations across Australia and New Zealand. This isn't just limited to the cloud customers; it extends to the suppliers of the hardware, software, and services that power the cloud revolution. It's a rising tide that lifts all boats. 

Public cloud adoption has been steadily gaining ground since the pandemic's onset. Why? Because organisations are striving to enhance their capabilities and trim costs simultaneously. In this era, the public cloud is the go-to platform for digital transformation.

Did you know? 

  • public cloud spending in Australia is set to increase by 83 per cent from A$12.2 billion in 2022 to A$22.4 billion in 2026  
  • public cloud spending in New Zealand is expected to nearly double in the same period from NZ$2.6 billion to NZ$5.1 billion  
  • public cloud adoption in Australia will generate A$123.7 billion in revenue across the nation’s cloud customer and supplier ecosystems in 2022 (equivalent to more than 5 per cent of GDP)  
  • public cloud adoption in New Zealand will generate NZ$23.9 billion across the nation’s cloud customer and supplier ecosystems in 2022 (equivalent to almost 6 per cent of GDP)  
  • public cloud deployments will generate cumulative new revenue of more than A$114 billion in Australia and NZ$21 billion in New Zealand for cloud customer and supplier ecosystems by 2026.*

“Cloud computing enables organisations to free up IT resources so they can achieve more technology and business innovation to drive revenue growth,” says Linus Lai, Research Vice President at International Data Corporation Asia/Pacific. “Investment in cloud computing services also drives revenue growth for organisations that make up the supplier ecosystem. These include systems integrators, software providers and professional services providers,” adds Lai.

The IT Skills Gap: A Thorn in the Cloud

Public cloud adoption and related areas like security, data mining, and analytics are poised to create a whopping 596,750 jobs in Australia and 134,000 in New Zealand. These jobs will often demand specific technical and IT-related digital skills. As the demand for digital expertise continues to soar, investing in upskilling your workforce becomes paramount. Managing cloud environments necessitates specialised capabilities, and the supply of these skills hasn't kept pace with demand. This glaring gap in expertise remains a significant hurdle on the path to cloud adoption.

A Cloud-Driven Future

“It’s clear that the strong demand for public cloud services in Australia and New Zealand shows no signs of slowing, as organisations continue to transform their business operations, accelerate the pace of innovation and capitalise on technologies such as AI and data analytics,” says Steven Worrall, Managing Director at Microsoft ANZ. “Cloud technology will also help organisations remain resilient in today’s challenging economic environment by enabling them to simplify their IT systems and processes, reduce costs and minimise risks. 

We’re also excited to be adding significant new Generative AI capabilities, including copilot productivity functionality across our Microsoft 365, Dynamics 365, Security, and Teams platforms and bringing Enterprise Azure OpenAI services to the cloud. These will enable customers and developers to unlock further productivity and innovation from their investments in Microsoft Cloud, while also leveraging our commitment to responsibility and trust in this new area of technology.” 

In this landscape, it's clear that public cloud services are the way forward. Organisations with existing cloud migration strategies are poised to reap the benefits, driving business efficiency and innovation. For those without strategies in place, adapting to the cloud becomes a necessity, not a choice. 

As you contemplate the immense potential of the cloud, remember that knowledge is power. The road to successful cloud adoption can be daunting, but it's a journey worth embarking on. Take the first step by exploring your options, understanding the challenges, and planning your strategy.

Discover Your Cloud Path with an Azure Express Assessment

For a clearer roadmap to your cloud destination, consider our Azure Express Assessment. This incredible evaluation tool offers detailed predictive insights for businesses contemplating cloud migration. The best part? It requires minimal time input from your side. In collaboration with our colleagues at Microsoft, we're offering this assessment for free (originally priced at $5k) to a select number of businesses. Don't miss this opportunity to make an informed decision about your cloud journey.