Cloud spending in Australia to hit $22.4bn by 2026

Australian public cloud spending is anticipated to soar by 83% to AUD $22.4 billion by 2026, as per a whitepaper by IDC. In response to this significant growth, PagerDuty, a global leader in digital operations management, has collaborated with leading insurance company, IAG, to provide insights for Australian businesses aiming to enhance their cloud resilience.

During the recent Australian AWS Summit held in Sydney in April 2024, PagerDuty and IAG shared their views on IT operational resilience, an increasingly critical issue against the backdrop of substantial cloud investment trends. The discussions highlighted strategies to improve operational resilience within businesses and the broader industry.

Heath Newburn, PagerDuty's Global Field Chief Technology Officer, elaborated on vital strategies for Australian companies to fortify their IT operational resilience. "As businesses navigate operational transformation, achieving top-tier resilience is paramount. Simply adopting AI and automation won't suffice; we must direct our focus on people and how we can leverage these technologies effectively to accelerate their value," Newburn stated.

Newburn underscored the importance of contextual automation in managing incident responses. "Automation alone falls short; contextual automation, built by leveraging real-time data from the environment, is essential for swift incident resolution," he added. This approach highlights the necessity to integrate and contextualise automated systems with real-time insights to manage operational disruptions effectively.

David Ndukwu, Head of Platform Engineering at IAG Australia, echoed similar sentiments regarding operational transformation. He emphasised the crucial role of communication and consensus-building within the organisation. "Engaging stakeholders from across the organisation is crucial, particularly in large enterprises like IAG. By establishing shared context and robust frameworks, we can effectively drive change and ensure alignment across the business," Ndukwu noted. His perspective underscores the need for cohesive communication strategies and comprehensive frameworks to achieve meaningful operational resilience.

The collaborative insights from PagerDuty and IAG come at a time when Australian businesses are increasingly investing in cloud technologies. As the market grows, so does the need for robust operational resilience frameworks to manage potential disruptions and leverage the full value of technological advancements in AI and automation.

Australian enterprises are advised to focus on both human and technological aspects to realise comprehensive resilience. Integrating real-time data and contextual automation for incident management, coupled with strong organisational communication strategies, is seen as a critical path towards achieving this goal.

The projected growth in public cloud spending highlights the necessity for businesses to adopt innovative approaches in managing digital operations. PagerDuty and IAG's shared expertise offers a vital roadmap for companies looking to navigate the complexities of digital transformation and operational resilience.

As the cloud investment landscape evolves, businesses will need to stay abreast of these developments and implement strategic measures that balance technological adoption with human-centric approaches. By doing so, they can ensure operational stability and unlock the potential benefits of their cloud investments.