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Australia’s Rapid Cloud Growth Lifts Microsoft Platforms

Cloud migrations are accelerating and maturing, with enterprises now moving more complex applications to Azure, ISG Provider Lens report says

Enterprises and government agencies in Australia are migrating to the cloud at a rapid pace that is expected to increase significantly over the next five years, according to a new research report published by Information Services Group, a leading global technology research and advisory firm.

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“COVID-19 has been a trigger for cloud migration in Australia”

The 2022 ISG Provider Lens Microsoft Ecosystem Partners report for Australia finds enterprises already using Microsoft Azure are now focused on implementing app-driven modernization of their cloud presence. Cloud-based Microsoft platforms such as Microsoft 365 are also part of this trend.

“Many Australian companies are already mature cloud adopters,” said Scott Bertsch, partner and regional leader, ISG Asia Pacific. “They are now gearing up to migrate complex applications like SAP to the public cloud.”

Some Australian organizations are also beginning to realign legacy applications to leverage data for insights using machine learning and AI, the report says. However, growing demand across the country has left enterprises with a shortage of cloud-certified experts skilled in certain technologies, including cybersecurity, IoT and AI.

Remote and hybrid work modes, originally imposed for the COVID-19 pandemic but likely here to stay for many Australian workers, create a growing need for Microsoft 365 tools to enable virtual collaboration, ISG says. By combining these tools with enterprise-wide applications and services, enterprises are building modern workplaces that equalize employee experiences between office and home.

“COVID-19 has been a trigger for cloud migration in Australia,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “It pressured companies to reduce costs and become more agile, both of which are good reasons to move workloads to the cloud.”

Australia has a complex and growing market for Microsoft partner services, the report says. Local provider options are expanding as Australian players challenge bigger global rivals. In some cases, providers will need to adjust their offerings and invest in new technologies, such as AI, to meet changing demands, ISG says.

The report also details trends around Microsoft Dynamics 365 and Power Platforms, including insights into how the need for omnichannel customer experiences has led companies to make better use of data.

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The 2022 ISG Provider Lens Microsoft Ecosystem Partners report for Australia evaluates the capabilities of 43 providers across five quadrants: Managed Services for Azure, Microsoft 365 Services, SAP on Azure Services, Dynamics 365 Services and Power Platform Services.

The report names Accenture/Avanade, DXC Technology, TCS and Wipro as Leaders in all five quadrants. It names IBM as a Leader in four quadrants and HCL and Telstra as Leaders in three quadrants each. Barhead Solutions, Empired, Fujitsu, Hexaware, Logicalis, Unisys and Velrada are named as Leaders in two quadrants each. AC3, Infosys and Tech Mahindra are named as Leaders in one quadrant each.

In addition, HCL and Infosys are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants each. Telstra is named as a Rising Star in one quadrant.

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