Multicloud reshapes cloud strategies in Australia & NZ

New research from Forrester has revealed that multicloud strategies, modernisation, and the use of advanced analytics and artificial intelligence are defining the cloud landscape in Australia and New Zealand.

The report, "The State of Cloud in Australia and New Zealand, 2024," finds that 90% of Australian enterprises are engaging in multicloud strategies, reflecting a strong commitment to optimise cloud investments amidst economic uncertainties. This regional analysis details the shift in regulatory policies, the modernisation of operations, and the evolution of cloud usage to support business innovation.

The cloud markets in Australia and New Zealand are evolving, driven by regulatory changes and the expansion of data centres beyond their traditional locations in southeastern Australia. This evolution is expected to continue with the establishment of hyperscaler data centres and tier-two entrants, presenting enterprises with a period of strategic renewal.

Multicloud adoption is a central theme, with a reported 90% of Australian enterprises utilising multicloud strategies. This approach aims to enhance portability, reduce costs, and mitigate risks associated with vendor dependency.

There is a growing emphasis on modernisation, with 14% of Australian cloud decision-makers planning to update core applications using cloud-native tools like Kubernetes and AI/ML technologies in 2024. This is part of broader efforts to improve operational efficiency and scalability.

Cloud optimisation has gained prominence, with senior executives increasingly applying FinOps practices to better allocate resources and cut spending. Some enterprises have reported returns on investment of up to 200% within six months of implementing these strategies.

Hybrid cloud strategies are also gaining traction, providing organisations a balance between control and flexibility. This enables seamless data integration across on-premises and cloud environments, essential for meeting regulatory compliance while optimising performance.

Another significant trend is the use of data as a strategic asset, leveraging advanced analytics and AI in the cloud to convert data into actionable insights. This allows enterprises to make informed decisions rapidly, enhancing their competitiveness.

There is a notable focus on sustainability within the cloud sector, with providers emphasising green energy practices to reduce carbon footprints. Companies are increasingly prioritising eco-friendly solutions to align with sustainability targets and regulatory expectations.

In New Zealand, the adoption of cloud-based solutions is helping businesses streamline operations and improve data management efficiency. This shift is crucial for maintaining agility and competitiveness in a dynamic global market.

New Zealand enterprises, reflecting a national priority on environmental management, are aligning with cloud providers that emphasise renewable energy and sustainability. This ensures that their digital transformation strategies contribute to the country's low-carbon goals.

"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."