Australia’s Public Cloud Spending to Hit A$26.6 Billion in 2025
Australia’s public cloud services market is forecast to surge to A$26.6 billion in 2025, marking an 18.9% increase from the previous year. The sharp rise reflects the nation’s ongoing digital transformation, driven by increasing adoption of artificial intelligence, modernization of legacy IT systems, and a growing demand for scalable cloud infrastructure.
Software-as-a-Service (SaaS) is expected to remain the largest segment, accounting for nearly A$13 billion in spending next year. This growth is being fuelled by the expansion of cloud-based applications and the integration of generative AI into enterprise software, which is transforming workflows across industries from finance to healthcare.
Infrastructure-as-a-Service (IaaS) is projected to be the fastest-growing segment, rising by 24.2% to reach A$5.6 billion. This increase reflects businesses’ needs for flexible computing resources to support dynamic workloads, data storage, and high-performance applications. Platform-as-a-Service (PaaS) is also set to grow by over 21%, reaching A$8 billion as developers increasingly turn to cloud platforms for faster deployment and greater scalability.
Even smaller segments like Desktop-as-a-Service (DaaS) are seeing double-digit growth, with more businesses supporting hybrid work models and remote access solutions.
Cloud adoption remains a strategic priority for IT leaders, with the vast majority of CIOs in Australia naming cloud platforms as one of their top investment areas for 2025. Security and analytics remain closely linked priorities, reflecting the need to manage and extract value from the growing volumes of cloud-based data.
Despite global economic uncertainties and supply chain pressures, Australia’s public cloud market is expected to remain strong. Multi-year enterprise agreements and strategic cloud transformation projects are helping to ensure steady investment and long-term resilience across sectors.
Social Media Age Verification Trials Under Scrutiny
Australia’s age verification trial for social media platforms is drawing increasing scrutiny as it approaches its conclusion. The trial, launched in 2024, tested technologies like facial recognition and document verification to block users under 16 from accessing social platforms. While it aimed to improve online safety for children, concerns have emerged over its effectiveness, privacy implications, and broader social impact.
Initial findings show some success in detecting underage users, but critics warn that tech-savvy teens may easily bypass such measures. The limited range of tools tested also raises questions about how effective and scalable the solution would be if implemented nationwide.
Privacy advocates have voiced strong opposition to the idea of requiring sensitive information, such as government IDs, arguing that it exposes users to data security risks and undermines trust in online services. There are also fears that collecting and storing such data could lead to misuse or breaches.
Others warn that a strict age block could unintentionally harm vulnerable youth who rely on social media for mental health support, community engagement, or education. As the trial wraps up, experts are calling for a more balanced solution that combines better platform accountability with privacy-respecting technologies and stronger parental oversight.
Telstra Pushes Back Against Vodafone’s Claims Over Mobile Network Size Misrepresentation
Telstra is under scrutiny after Vodafone’s parent company, TPG Telecom, accused it of overstating its mobile network coverage by nearly 40%. Vodafone claims that Telstra’s advertised 3 million square kilometers of coverage includes areas requiring external antennas—equipment not commonly used by consumers—suggesting that the actual coverage is significantly less.
In response, Telstra maintains that its coverage claims are based on standard mobile devices and that external antennas are not necessary for most users. The company has updated its website to clarify that the 3 million square kilometers of coverage are achievable without the need for special equipment. Telstra also emphasizes that its network remains the largest in Australia, asserting that it covers at least one million square kilometers more than its nearest competitor.
The Australian Competition and Consumer Commission (ACCC) is currently reviewing the matter to determine if Telstra’s advertising practices comply with consumer protection laws. The outcome of this investigation could have significant implications for how telecommunications companies present their coverage claims to the public.
This dispute highlights the need for clearer and more standardized methods of measuring and reporting mobile network coverage to ensure consumers are accurately informed.
Optus Strengthens Public Sector Ties with New $33M Health Department Deal
Optus has secured a significant contract with the Australian Department of Health, valued at $33 million. This agreement underscores Optus’ expanding role in supporting the Australian government’s digital transformation initiatives.
The contract encompasses a range of telecommunications services, including the provision of mobile, voice, and data solutions to the Department’s extensive network. Optus’ cloud-based infrastructure and high-performance ICT services are expected to enhance the Department’s operational efficiency and support its national health and wellbeing objectives.
This partnership adds to Optus’ growing portfolio of public sector engagements, which includes previous contracts with Services Australia and the Department of Agriculture, Fisheries and Forestry. By leveraging its technological capabilities, Optus aims to deliver scalable and resilient solutions that align with the government’s digitalization and innovation agenda.
Optus Business Managing Director John Paitaridis emphasized the company’s commitment to providing robust services that meet the Department’s current and future needs. He highlighted that this collaboration positions Optus as a key player in supporting the digital infrastructure of Australia’s public sector.
As the Department of Health continues to modernize its services, this partnership with Optus is poised to play a pivotal role in enhancing the delivery of healthcare services across the nation.
