Regulations, Resilience, and the Rise of the Multicloud

Australian and New Zealand businesses are overwhelmingly choosing multicloud strategies for their digital transformation, driven by regulatory issues and the rapid adoption of AI and advanced analytics.

This is one of the key insights from the latest report from analysts Forrester, "The State of Cloud in Australia and New Zealand, 2024," which finds that 90% of Australian enterprises are engaging in multicloud strategies.

The Forrester report says cloud markets in Australia and New Zealand are evolving, driven by regulatory changes and the expansion of data centers beyond their traditional locations in southeastern Australia.

This evolution is expected to continue with the establishment of hyperscaler data centers and tier-two entrants, presenting enterprises with a period of strategic renewal.

By choosing multicloud strategies, organizations believe they can enhance portability, reduce costs, and mitigate risks associated with vendor dependency.

"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 the cloud to enhance resilience, optimize operations, and unlock innovation. However, to achieve sustained success, businesses must focus on rethinking their strategies to capitalize on opportunities like AI advancements and emerging cloud environments."

The multicloud choice is seeing organizations adopting hybrid cloud models which strike a balance between flexibility and control to enable data integration across on-premises and cloud environments.

They are also leveraging advanced analytics and AI capabilities in the cloud to transform data into actionable insights. This has the advantage of also enabling regulatory compliance while improving performance

The report says there is a growing emphasis on modernization, 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 optimization has gained prominence, with organizations 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.

There is a notable focus on sustainability within the cloud sector, with providers emphasizing green energy practices to reduce carbon footprints.

Companies are increasingly prioritizing eco-friendly solutions to align with sustainability targets and regulatory expectations.

New Zealand enterprises are notably aligning with cloud providers that emphasize renewable energy and sustainability.

This ensures that their digital transformation strategies contribute to the country's low-carbon goals.

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