A new report by Amazon Web Services (AWS) indicates that micro, small, and medium-sized enterprises (MSMEs) that embrace cloud-enabled technologies in Australia are expected to unlock up to AU$9.3 billion in annual productivity gains and be able to generate 1.4 million jobs across the healthcare, education, and agriculture sectors by 2030.
AWS’s Realising a Cloud-enabled Economy: How Cloud Drives Economic and Societal Impact Through Micro, Small, And Medium-Sized Businesses report reveals that, by moving to the cloud, MSMEs can drive tangible benefits to the economy and society and unlock benefits that will enable the country to meet the targets included in the United Nations’ Sustainable Development Goals.
In the healthcare sector, cloud-enabled MSMEs can help address the limited access to healthcare faced by underserved communities. The report estimates cloud-enabled MSMEs can help unlock AU$4.7 billion in annual productivity benefits in healthcare and support 17 million telehealth consultations in Australia by 2030.
In the education sector, cloud-enabled MSMEs can help address accessibility and inclusivity of education through digital platforms. The report estimates these MSMEs can help unlock AU$2.9 billion in annual productivity benefits in education and provide seven million students and adults in Australia with e-learning solutions by 2030.
In the agriculture sector, cloud-enabled MSMEs can help with addressing food shortage problems by implementing data-driven practices through cloud technologies such as AI. The report estimates MSMEs in Australia can help unlock AU$1.7 billion in annual productivity benefits in agriculture, and one in three farms will use precision agriculture solutions that enhance productivity by 2030.
The report noted that Australia’s current rate of basic cloud adoption such as the use of web-based email services or cloud-based storage solutions is at 48 per cent, intermediate adoption such as the use of customer relationship management or enterprise resource planning tools is at 41 per cent, and advanced adoption such as the use of artificial intelligence (AI), including generative AI, and machine learning (ML) tailored for sophisticated tasks including fraud detection or supply chain forecasting is at 15 per cent.
“Australia has one of the highest overall cloud adoption rates globally, paving the way for the country to transition to a cloud-enabled economy,” Michelle Hardie, Head of Strategy and Operations for ANZ at AWS, said. “Micro, small, and medium-sized enterprises, though often the unsung heroes of innovation, play a crucial role in addressing challenges in Australian society, such as by improving access to digital healthcare and education services.
“To accelerate adoption of advanced cloud technologies such as generative AI and realise economic and social benefits sooner, AWS is working alongside governments, educators, and the industry to help local businesses in Australia create a better future for all,” Hardie added.
Nevertheless, some challenges remain for cloud adoption among MSMEs , the report found. Chief among them are cybersecurity challenges, organisational culture, lack of access to information technology infrastructure (software and hardware) and digital skills. The report therefore recommended the following:
- Identify how the cloud can streamline strategic business needs.
- Evaluate industry and government support.
- Upskill and educate employees in cloud.
- Review data and security policies.
- Create a whole-of-business cloud migration strategy.
“While there are significant benefits that are unlocked by micro, small, and medium businesses adopting at least a basic level of cloud technology, there is still a huge opportunity for them to further advance their cloud adoption as this will accelerate their ability to address some of the biggest challenges in society,” Aaron Hill, Managing Director of Economic Insights at Accenture Strategy and Consulting, said. “With more support from governments and the industry, these businesses will have greater ability to harness the power of transformative technologies such as generative AI to unleash even more innovation, drive economic productivity, and deliver meaningful change to society.”
