Hyperscale cloud and its benefits to the Australian economy
REPORT

Hyperscale cloud and its benefits to the Australian economy

clock

18.12.2023 - 05:19

Technology

New research by economics firm Mandala shows that adoption of hyperscale cloud technology unlocks $6.3 billion every year in benefits for Australian businesses and the economy. Hyperscale cloud also directly creates over 8,000 jobs for people working in diverse roles from tech trades peoples to ICT professionals across Australian data centres. This research is the first time the economic effect of the unique capabilities offered by hyperscale cloud have been quantified.

Hyperscale cloud is the critical infrastructure underlying Australia’s technology ecosystem

Hyperscale cloud offers globally standardised services to Australian businesses. It enhances user experiences with high performance and low latency across various domains, including AI, machine learning, big data, and virtual reality. Research suggests that Generative AI, supported by hyperscale cloud, has the potential to add up to $115 billion annually to the Australian economy, and AI more broadly will contribute $15.7 trillion to the global economy by 2030.

Acting as a central pillar within the Australian digital ecosystem, hyperscale cloud serves as a critical intermediary, facilitating daily business operations and software relied on by everyday Australians. While non-hyperscale cloud providers offer tailored capabilities, hyperscale cloud delivers globally-leading, comprehensive, sophisticated feature-sets to Australian businesses.

This study focuses on measuring the positive impact of the unique capabilities of the hyperscale cloud to Australian businesses. It examines the distinct features that set hyperscale cloud apart from non-hyperscale cloud solutions. While recognising that shared capabilities between hyperscale and non-hyperscale also contribute to economic value, our focus remains on the benefits derived exclusively from the hyperscale environment.

Hyperscale cloud technology is crucial for Australian businesses, delivering approximately $6.3 billion in benefits per annum

portableText image

Key areas of this impact include:

1) Enhanced Capabilities: Hyperscale cloud's advanced technological functions including on AI, machine learning, AR/VR and data querying have led to productivity boosts, generating an additional $3 billion in benefits for Australian businesses.

2) Operational Resilience: Hyperscale offers increased reliability of services and diminishing expected downtime compared to non-hyperscale cloud, translating to $530 million in financial savings (avoidance of downtime cost). Hyperscale also decreases the expected likelihood of a successful security breach by 30% due to high investments and global threat intelligence, preserving an estimated $480 million annually within the Australian economy.

3) Cost Efficiencies: Hyperscale cloud has trimmed IT infrastructure spending by 5%, amounting to savings of up to $980 million per year for Australian businesses, thus improving cost efficiencies.

4) Market Access: By facilitating access to global markets, hyperscale cloud has unlocked more than a 40% increase in revenue for Australian businesses, broadening their opportunities to serve customers overseas seamlessly and with low latency.

portableText image

Hyperscale cloud creates direct employment opportunities for over 8,000 Australians, offering a broad ranges of opportunities to a diverse workforce

Over the past decade, direct jobs in hyperscale cloud have more than tripled, from 2,330 employees in 2011 to 8,240 in 2021. This growth demonstrates hyperscale cloud’s vital role in job creation across a spectrum of roles, from tech trades to ICT specialists.

The workforce within hyperscale cloud is diverse, with 73% of the employees aged between 15-44, highlighting the sector's appeal to young Australians. This diversity indicates that hyperscale cloud is a driver of high-tech jobs, and also supports a variety of other professional roles crucial to the operation and management of these services.

Upskilling Australians to work in hyperscale cloud and data centre related roles will help them fill the additional global demand for 140,000 data centre staff by 2025.

Read the full report here.

Read our latest posts

Production Tax Credit for value-add processing of Australia’s critical minerals
Energy transitionNet ZeroClimateData

Production Tax Credit for value-add processing of Australia’s critical minerals

Our report ‘Production Tax Credit for value-add processing of Australia’s critical minerals’, commissioned by the Association of Mining and Exploration Companies (AMEC), explores how targeted production tax credit for value-add processing of critical minerals can improve Australia’s competitiveness and help our domestic critical mineral sectors reach their potential. Our report finds that introducing a production tax credit for lithium, nickel, vanadium and rare earth metals can make Australia cost-competitive and create opportunities in the downstream processing of critical minerals. Australia’s critical minerals are central to the global energy transition, however global competition has put Australia at a cost disadvantage in downstream processing of critical minerals. Introducing a production tax credit of 10 per cent in Australia would help to equalise production costs with global competitors. While the production tax credit will increase fiscal costs over the forward estimates and medium-term, it will add $2.4 billion of economic activity and support 4,220 ongoing jobs.

28 Feb, 2024

PsiQuantum Launch Research
Technology

PsiQuantum Launch Research

With a $940 million investment in PsiQuantum announced, our launch research supports the economic case for building the world’s first fault-tolerant quantum computer in Brisbane, Australia. Our research found this hybrid investment bet will directly support 2,800 high-skilled jobs across the Queensland and the Australian economies and support $5.1 billion of additional economic activity.

30 Apr, 2024

Spirits industry sector competitiveness plan
InternationalEconomicsWorkforce

Spirits industry sector competitiveness plan

Our new report, commissioned by the Australian Distillers Association (ADA) and Bundaberg Rum outlines the $1 billion export opportunity for Australia’s spirits industry. While Australia has the right building blocks for developing a strong spirits export industry, it's not reaching its potential. The report identifies the key barriers holding the industry back from as well as the steps which can be taken to realise this $1 billion opportunity. Growing the spirits industry will contribute to national economic priorities of growing manufacturing jobs, supporting small business, empowering regional communities, creating export opportunities, generating tourism and supporting diversity and young people.

10 Apr, 2024

Superannuation and climate change: Better returns for a better climate
ClimateSuperannuation

Superannuation and climate change: Better returns for a better climate

Mandala's report, 'Superannuation and climate change: Better returns for a better climate' in partnership with Future Super, examines the economic impact of market failures in superannuation performance standards. It identifies opportunities to unlock long term economic uplift through reform of these standards. Climate change will reallocate capital across the economy. Australia’s $3.4 trillion of superannuation savings will be impacted by this transition and determined by Australia's policy settings. There is significant opportunity for regulatory reform that drives returns and facilitates a broader role for the superannuation industry within the transition to net zero – and more particularly to address the market failures and time inconsistency that emerge from current regulatory design choices. Such reforms would recognise the core responsibilities of superannuation and the economic and policy priorities facing Australia.

3 Apr, 2024

Loading...