Cloud Technology in Melbourne
Melbourne has a culture of early adoption, pride in technical excellence and innovation. Strong local research, generous government support and the country's largest tech workforce provide the oxygen for Melbourne's cloud and SAAS hub in what is regularly chosen as the world's most liveable city, with 'perfect' infrastructure.1
The largest cloud hub in the Asia-Pacific
Melbourne's cloud hub is the largest in the Asia-Pacific. Investors in cloud and SAAS find Melbourne's early adoption culture, ease of business networking, technical depth, and generous funding for R&D all work together to create a critical mass of cloud/SAAS activity and expertise. Melbourne has more cloud-specific companies and listed technology companies than any other Australian city.
Business environment and infrastructure building in strength
Melbourne's business environment for cloud SAAS tech firms can be described as cost competitive, a level playing field, with steady growth predicted. It shares the country's tough intellectual property laws, ranked as the most comprehensive in the world.
80 per cent of the Australian population use cloud services, while nearly 90 per cent of large enterprises use cloud services. The number of cloud related jobs is predicted to grow by nearly 130 per cent through to 2015.4 The state ranks as third in the Asia Pacific for cloud readiness, while Australia leads the Asia Pacific for the number of cloud initiatives.5
The world's largest broadband system (under completion) and several world-class tech research institutes support the sector, as does an actively involved and forward thinking government.
Exceptional R&D tax concessions and government support
The Victorian Government strongly supports and fosters cloud and SAAS investors alike in a cost-competitive business environment with one of the lowest rates of business tax of any Australian state. As a result Melbourne is one of the largest R&D clusters in the southern hemisphere - KPMG ranks Melbourne as having the most attractive R&D location costs in the Asia Pacific.6
Melbourne spends more than any other Australian city on high-level technology related R&D and this spend is still growing.7 Generous R&D tax breaks make the tax burden for R&D activities around 90 per cent lower than in the US. 8
Melbourne also offers these location advantages for cloud/SAAS
- Melbourne offers world-class university research institutes, a strong cluster of local applications developers, integrators, key infrastructure providers and many leading international players in the cloud space
- Major international companies such as IBM, Microsoft, Agilent Tech, Thales and NEC as well as new and innovative firms such as Square have based their R&D centres here in Melbourne.
- The Melbourne Networked Society Institute (formerly the Institute for a Broadband Enabled Society) at the University of Melbourne brings together some of the best broadband researchers around the world. Partners include Cisco, Ericsson , Telstra and "Bell Labs".
- Victoria has technology clusters of noteworthy strength and capability. These include eHealth, eLearning, cyber security, and games and animation.
- Telstra, Australia's largest telco, opened a new A$100 million cloud centre in Clayton, Melbourne
- Telstra is spending A$800 million on a cloud infrastructure development program
- The University of Melbourne establishes the NeCTAR project, a national cloud for Australian researchers, and probably a world first.
- Centre for Energy Efficient Telecommunications (CEET)
- Australia's Academic and Research Network
- Australian Centre for Health Innovation
- Internet Commerce Security Lab (ICSL)
- Melbourne Networked Society Institute
- Melbourne Clouds lab
- Australian Software Innovation Forum
- Victorian Education & Research Network (VERnet)
- Victorian tech for Women network
- NBN Co.
- REA group
What to do now
Explore opportunities in other tech sectors in Melbourne
Start a conversation with our investment team about the potential of Australia's tech city for your company and to learn more about how we can help you at each step of the way.
1. Economist Intelligence Unit, Global Liveability Report, 2018
2. Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education (DIICCSRTE), 2012 Award Course Completions
3. Economist Intelligence Unit , Heidrick & Struggles Global Talent Index, Outlook to 2015
4. Cloud fact sheet
6. Competitive Alternatives KPMG's Guide to International Business Location Costs, 2016 Edition
7. Most recent available from ABS as at 25.07.2014
8. Competitive Alternatives KPMG's Guide to International Business Location Costs, 2016 Edition