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Australia’s March to the Cloud Energizes AWS Ecosystem

AWS and provider partners expand their presence as enterprises tackle talent shortage, other challenges using public clouds, ISG Provider Lens report says

Enterprise use of public clouds continues to increase in Australia, expanding the Australian partner ecosystem of AWS, a strong and growing hyperscale cloud provider in the country, according to a new research report published today by Information Services Group (ISG)  a leading global technology research and advisory firm.

“Many businesses in Australia are using AI and machine learning tools to optimize their use of customer and operations data”

The 2023 ISG Provider Lens AWS Ecosystem Partners report for Australia finds that the country is a leading market for cloud adoption but its cloud market is far from being saturated. Several factors are driving enterprises to implement cloud services to achieve business outcomes, and the local market is expected to continue growing.

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AWS has been expanding its presence in Australia since opening its first location in Sydney in 2012, the report says. The company now has multiple sites in Sydney and is expected to establish operations in Melbourne within months. It has also increased the bandwidth available to customers in Australia. A planned site in Auckland, New Zealand, will further strengthen AWS’s capacity in the region.

“Australian enterprises have long seen the value of the cloud for surviving and competing under changing business conditions,” said Ben Rossiter, cloud advisor at ISG. “AWS and its partner ecosystem are growing to support even higher demand for cloud services to meet new challenges.”

A severe IT labor shortage in Australia has heightened the need for managed services to support enterprise cloud strategies, ISG says. The COVID-19 pandemic and the rise of remote work have disrupted the private and public-sector labor markets as a result of increased migration and the Great Resignation, while changing work modes have forced employers to strengthen security measures and revise business processes. Hyperscalers and their partners have absorbed a large share of the technology talent pool, contributing to the recent shifts in employment.

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Organizations in Australia are also overwhelmed by the volume of data they produce and are facing challenges related to data quality, regulation and other issues, the report says. Increasingly, they are investing in cloud platforms such as AWS to generate business value from their data.

“Many businesses in Australia are using AI and machine learning tools to optimize their use of customer and operations data,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers are strongly positioned to help clients make the most of these tools from hyperscalers such as AWS.”

The report also explores several other trends affecting enterprise cloud strategies and the AWS ecosystem in Australia, including the growth of IoT and related cybersecurity issues and the country’s distinctive market for cloud migration of SAP workloads.

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The 2023 ISG Provider Lens AWS Ecosystem Partners report for Australia evaluates the capabilities of 37 providers across six quadrants: AWS Managed Services, AWS SAP Workloads, AWS Data Analytics and Machine Learning, AWS Internet of Things (IoT) Services, AWS Migration Services and AWS Consulting Services.

The report names Accenture, Deloitte and TCS as Leaders in all six quadrants. It names Capgemini, Infosys and Versent as Leaders in four quadrants each and AC3 and Wipro as Leaders in three quadrants each. CMD and DXC Technology are named as Leaders in two quadrants each, and Cognizant, HCLTech, PwC and Telstra Purple are named as Leaders in one quadrant each.

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