• Service: Advisory, Management Consulting, Technology Advisory, Economics, Topics, Innovation & Technology Trends, Cloud Computing
  • Industry: Media, Technology, Government, Federal Government, State & Territory Governments, Telecommunications
  • Type: Benchmarking study
  • Date: 1/05/2012

Modelling the Economic Impact of Cloud Computing 

KPMG and the Australian Information Industry Association (AIIA) have produced a study to analyse the potential impact of cloud computing services by public and private sector enterprises on the Australian economy, and found the benefits at an enterprise and aggregate economy level could be substantial.
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The study, based on all sectors of the economy other than agriculture, found that information, communication and technology (ICT) capital and operating expenditure is expected to significantly reduce over the long run (10 years plus). As a result, firms are able to produce greater amounts of output with the same level of input, or else the same level of output can be achieved with reduced ICT, thereby freeing up resources for use in other forms of production.


The results of the study are intended to facilitate a more informed understanding of, and further discussion around, the current state of cloud computing in Australia and it's potential impact over the next decade.


Key insights

  • More mature markets such as the USA suggest the adoption of cloud platforms is likely to be between 50 and 75 percent of relevant ICT requirements.
  • At 75 percent adoption, and based on current Australian GDP, this would result in opex and capex savings of 25 percent and 50 percent respectively.
  • After 10 years, this would result in an increase in long-run GDP of A$3.32 billion per annum.
  • At 50 percent adoption levels, the GDP gain is A$2.16 billion per annum.

Business impacts of cloud

Business impacts of cloud
Cloud is creating new business opportunities for companies that are willing to harness its power.


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