Cloud technology

Melbourne has a culture of early adoption, pride in technical excellence and innovation. Strong local research, generous government support and the country's largest ICT 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.

A tech savvy, talented and sophisticated city

Melbourne's ICT sector is a highly talented workforce with its skills refreshed by the country's strongest talent pipeline. Melbourne has more ICT students and graduates than any other city. Over a third of all ICT masters graduates are from one of Victoria's many world-class universities.2 IBM Plant Location international and KPMG benchmark Melbourne as a 'very high' quality location for skills. In the wider context, the global talent index ranks Australia equal first in the Asia-Pacific region.3

Business environment and infrastructure building in strength

Melbourne's business environment for cloud SAAS ICT 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 ICT 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
  • Victoria has technology clusters of noteworthy strength and capability. These include eHealth, eLearning, eSecurity, and games and animation.

Recent sector investments

  • Telstra, Australia's largest telco, opened a new A$100 million cloud centre in Clayton, Melbourne (2014)
  • Telstra is spending A$800 million on a cloud infrastructure development program (2011-16)
  • Box Hill TAFE establishes a centre of excellence in cloud computing, the VMware Academy (2013)
  • The University of Melbourne establishes the NeCTAR project, a national cloud for Australian researchers, and probably a world first.

Cloud and SAAS clusters for collaboration and cross fertilisation

Some local (and internationally renowned) cloud/SAAS firms

Sources:
1. Economist Intelligence Unit, Global Liveability Report, 2014
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
5. Ibid
6. Competitive Alternatives KPMG's Guide to International Business Location Costs, 2014 Edition
7. Most recent available from ABS as at 25.07.2014
8. Competitive Alternatives KPMG's Guide to International Business Location Costs, 2014 Edition