Cloud computing driving investment confidence and market growth
Investment in cloud computing has dominated venture capital activity in technology, but how will Australian organisations continue with this innovation moving forward?
Cloud computing was the most highly rated sector of investment confidence for the third year in a row.
According to Deloitte’s Global Venture Capital Confidence survey, cloud computing was the highest-rated sector for the third year in a row. A confidence score of 4.18 out of 5 for this year was an increase of 0.19 index points compared to the previous year. Sentiment in cloud investments outpaced other popular technologies such as mobile and the Internet of Things, with respective ratings of 4.05 and 3.95.
Australian investors remain confident in technology overall. Although sentiment has declined by 0.3 points, the current rating of 3.19 out of 5 is a pleasing figure. However, Jim Atwell, national managing partner of the Emerging Growth Company practice at Deloitte, stated that while confidence is positive overall, the government has a major role in maintaining future growth.
“Despite a hot IPO market and the proliferation of appealing investment opportunities across industries, this data shows that investors believe that the government needs to do more to ensure they can fully capitalise on the prospects ahead,” he stated.
Cloud technology boosts growth in other markets
Recent research from Frost & Sullivan has shown the potential cloud computing has to drive growth in emerging industries. The organisation revealed that the market for data centre services has increased by 18.3 per cent in 2013, dominated by co-location services.
These centres hare vital to building a business ecosystem, with applications like payroll software able to converge with cloud platforms. Frost & Sullivan have predicted a revenue growth rate of 18.2 per cent over 2015, easing to a compound annual growth rate of 13.7 per cent through to 2020. This will be propelled by the emergence of and the Australian government increasing its use of third-party cloud systems.
Companies Australia-wide are showing an increasing interest in the cloud, according to data from the Australian Bureau of Statistics. In 2013-14, 19 per cent of companies utilised paid cloud computing services. Of the businesses who utilised these platforms, 87 per cent purchased cloud enabled software, making it the most widely application.
The use of cloud based platforms in applications such as recruitment software is set to become a necessity for businesses across Australia. As the technology continues to evolve, companies must be aware of how these innovations can improve their own business functions.