Saving millions through cloud adoption – A solution for Australian businesses
- Written by George Harb, Vice President OpenText ANZ
Australia’s economy is largely driven by small and medium-sized enterprises (SMEs), with significant growth in sectors such as healthcare and government. Like many industries, these sectors are grappling with rising operational costs and heightened compliance pressures. As Australian businesses face growing pressure to innovate while managing constrained budgets, the demand for digital transformation has never been more critical. In sectors like finance, healthcare, and government, embracing cloud adoption is not just about surviving today’s economic challenges but about setting the foundation for future growth and innovation.
A recent report by Forrester has revealed underlying opportunities beyond traditional cost-saving that businesses can tap into, including cutting-edge technologies like AI and automation. These innovations streamline operations and mitigate risks such as downtime, all while keeping businesses agile in a rapidly changing market. This approach aligns directly with the Australian government's push for digital transformation across both public and private sectors, making solutions like cloud content management crucial for future-proofing operations.
Labour savings through automation
Rising labour costs in cities like Sydney and Melbourne, coupled with persistent skill shortages, have made automation a highly attractive solution for Australian businesses. Based on a sample of organisations that have between 45TB and 120TB of content we have found Businesses could see a 310% return on investment over three years by leveraging OpenText Private Cloud solutions, —a powerful testament to automation’s role in driving efficiency. In industries such as finance, healthcare, and government, where wage demands are high and resources scarce, automation is a strategic solution to these growing challenges.
By automating repetitive tasks like data entry, document management, and customer service workflows, businesses can enable employees to work alongside technology, focusing their efforts on innovation and higher-value activities to drive productivity. This not only reduces the risk of costly errors but also enhances operational speed and scalability. As labour shortages continue to impact growth across key sectors, private cloud solutions offer a critical pathway to substantial cost savings, with businesses potentially saving up to $5.5 million—an essential relief in today’s economic climate.
Decommissioning expensive legacy systems
Many Australian organisations are still relying on legacy infrastructure, despite the rising costs and inefficiencies associated with maintaining outdated systems. The risks of not modernising are significant, from escalating maintenance expenses to decreased productivity and vulnerability to system failures. Legacy systems also struggle to meet modern business demands, making it difficult to scale operations effectively and meet new compliance standards, such as those outlined in the Australian Privacy Principles.
By transitioning to cloud-based platforms, businesses can immediately reduce these maintenance costs while gaining the scalability needed for long-term growth. The Forrester report highlights that decommissioning legacy infrastructure could save businesses $1.9 million, offering both immediate financial relief and the flexibility to adapt to future demands without being constrained by outdated technology.
Avoiding downtime costs
In Australia’s fast-paced and highly competitive market, system downtime can lead to significant financial setbacks, disrupting operations and damaging customer trust. Cloud solutions are designed to minimise these risks by ensuring continuous uptime and seamless business continuity. With robust infrastructure, automatic updates, and failover capabilities, businesses can rely on cloud technology to keep their systems running smoothly, even during unexpected challenges.
The Forrester report found that avoiding downtime with OpenText’s cloud solution could save companies up to $16.4 million, making it a critical investment for businesses looking to maintain consistent operations and stay ahead in a competitive market.
Meeting Australia’s stringent compliance requirements
As compliance costs increase due to evolving regulations like the Australian Privacy Principles, businesses are under growing pressure to ensure the secure management of sensitive data. This is particularly true for industries like healthcare and finance, where data breaches can result in severe financial penalties and reputational damage. Private cloud solutions provide a secure and compliant platform that helps businesses meet stringent regulatory requirements. By offering advanced data encryption, access controls, and audit capabilities, cloud-based platforms enable organisations to manage sensitive data securely and reduce the risk of costly compliance breaches.
The Forrester report reveals that these cloud solutions could save businesses up to $496,000 in non-compliance costs, further solidifying cloud adoption as an essential strategy for long-term resilience and operational efficiency.
For Australian businesses, cloud adoption offers more than just immediate cost savings. It paves the way for long-term resilience, operational efficiency, and innovation. In a market where compliance demands are growing, and operational costs are increasing, moving to cloud-based solutions ensures that businesses can thrive while mitigating risks and future-proofing their operations.
