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Cloud & Infrastructure
Market Narratives
Infrastructure Investment Landscape ANZ 2024: Size-Based Strategies, Modernisation Imperatives and the AI Revolution
Feb 21, 2025
Infrastructure investment in Australian organisations is evolving, with cloud infrastructure consistently accounting for 26-29% of budgets across all business sizes. While large enterprises prioritise AI and PaaS, mid-market firms focus on modernisation, and SMBs take an aggressive approach to AI adoption.
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Infrastructure investment in Australian organisations is evolving, with cloud infrastructure consistently accounting for 26-29% of budgets across all business sizes. While large enterprises prioritise AI and PaaS, mid-market firms focus on modernisation, and SMBs take an aggressive approach to AI adoption. Regulatory changes and talent shortages are reshaping spending priorities, driving a shift from simple cloud migration to comprehensive transformation.
Core Insights:
Cloud and AI dominate investments
- Cloud infrastructure remains a top spending area (26-29% of budgets) across all business sizes.
- AI adoption is accelerating, with SMBs leading at 73% and large enterprises at 65%.
- Large enterprises invest heavily in PaaS (72%), while mid-market firms focus on workload optimisation.
Modernisation over migration
- 62% of organisations are increasing focus on legacy infrastructure modernisation.
- Application modernisation (60%) and API evolution (58%) are key priorities.
- Despite strong focus, funding constraints (22-24% of budgets) could slow execution.
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