Why Australian Businesses Are Investing In Cloud Computing Services

Zoran TasevskiTechnology

The cloud is an essential part of life for businesses and consumers alike. As cloud computing solutions continue to become more powerful and drop in cost, more Australian businesses than ever are moving their data centres to the public cloud or private cloud. According to a paper by Deloitte(1), 42% of businesses in Australia are using paid cloud services as of the end of 2019 – compared to just 31% in 2015-2016.

But why are cloud computing services like software as a service (SaaS) and cloud infrastructure as a service (IaaS) becoming so popular in Australia? In this article, we’ll explore why cloud-based architecture is becoming such a popular investment for Australian businesses.

The Cloud Helps Businesses Save Money On Hardware And Software

Whether it’s used for data storage, as a computing or database solution, or to host software through an SaaS model, cloud-based computing, the cost savings offered by cloud service providers are hard to beat.

This is because, with a cloud-based infrastructure, you do not have to invest in purchasing physical hardware or software licenses. With a SaaS program like Office 365, all you have to do is purchase a subscription, and your users can begin using the program immediately – without purchasing and installing individual programs and buying individual licenses.

These savings are even more apparent for companies that would otherwise invest a lot of money in physical computing equipment for compute services, such as on-premises servers in a server room.

Running servers and other computing hardware requires a lot of time and money. Not only does a business have to pay for the servers and other hardware and equipment, but there are also related costs to installing them, running network wiring, creating a properly-cooled server room, and paying for the power required to run the equipment.

In contrast, a cloud service allows you to get access to the same hardware resources and software – without the hassle, and while minimizing the cost. According to the previously-mentioned survey by Deloitte, 78% of users have seen improvements in productivity since beginning to use cloud services.

Cloud Computing Services Are Inherently Scalable & Flexible

This is, perhaps, the most valuable aspect of cloud computing for Australian businesses. Whether you’re using a public cloud or private cloud, cloud computing services are much more flexible and scalable than on-premises IT infrastructure.

For example, let’s say you invest $100,000 into a set of on-premises servers. Then, two years later, you realize you need more computing capacity. You need to pay to reconfigure your server room, add new equipment, set it up, license the software you’re using, and more. This could lead to huge expenses.

Or, maybe you realize that the equipment you’ve purchased is much more powerful than you need at the time. But there’s no easy way to scale physical servers back down – or up.

This is not the case with cloud computing. If you ever need more (or less) computing power, or need to reduce or increase the number of software licenses you’re using, it’s typically as easy as making a phone call or clicking a button.

You can simply get in touch with your cloud services provider, and pay a fee to get access to more resources – and this process usually takes only a few minutes. The inherent scalability and flexibility of cloud computing is one of its biggest advantages, and allows Australian businesses to benefit from economies of scale.

Is Cloud Computing Right For You? The Answer Is Probably “Yes!”

At Technetics Consulting, we’re on your side. And if you’re ready to invest in public or private cloud infrastructure in Australia, our team of expert integration specialists is here to help. We can assist in managing your transition to the cloud, saving you time, money, and headaches. Ready to get started? Contact us online or give us a ring at 1300 853 453.


(1) Economic Value of Cloud Services by Deloitte