Australian Enterprises to Drive Microsoft Ecosystem Growth Through Increased IT Spending
Australian businesses are set to boost their IT spending in 2025, particularly in cloud, AI, and security, according to a recent report by Information Services Group (ISG). This surge is expected to increase demand for solutions and services within the Microsoft AI and cloud ecosystem.
The 2025 ISG Provider Lens™ Microsoft AI and Cloud Ecosystem report for Australia indicates that after years of cautious spending due to macroeconomic uncertainty, technology investments in the country are poised for faster growth. Enterprises are planning to invest primarily in cybersecurity, cloud-enabled digital transformation, and infrastructure modernization, including the replacement of Windows 10 hardware.
“Enterprises in Australia aren’t just adopting cloud, they’re demanding strategic outcomes from it,” said Ben Rossiter, lead for tech modernization at ISG in Australia. The focus is on improving cloud visibility, predictability, and cost control, driving demand for solutions that enhance cloud utilization, cost optimization, governance, and security.
Australian enterprises are also stepping up efforts to improve employee experience, retention, and productivity, particularly with the rise of remote and hybrid work modes. Companies are exploring ways to use Microsoft Teams, SharePoint, and OneDrive to enhance collaboration. While AI remains a focus, there’s a growing interest in using it to augment human productivity rather than replace workers.
The report highlights growing demand for FinOps and related services as organizations seek to increase oversight of IT projects and cloud services due to margin pressures. Enterprises are working with providers to better manage Microsoft 365 and Copilot licensing costs, with a rising demand for tailored solutions based on industry-focused blueprints and accelerators.
As Australian companies deploy hybrid clouds, they’re aligning technology investments with rising regulatory expectations, including data privacy, cybersecurity standards, and AI ethics. The need for unified security management, compliance, and risk mitigation has become a business imperative.
“Cyber threats continue to escalate, and Australian enterprises are responding with a sharper focus on prevention, detection, and resilience,” said Jan Erik Aase, partner and global leader of ISG Provider Lens Research. AI is becoming a critical enabler for improving response speed, decision quality, and control of IT environments.
The report evaluates 39 providers across four quadrants: Managed Services for Azure, Microsoft 365 Services, Power Platform Services, and AI Services for Microsoft Clouds. It names several companies as Leaders across these quadrants, including Accenture & Avanade, DXC Technology, and Fujitsu.
For more insights into the Microsoft-related challenges facing Australian enterprises and ISG’s advice for overcoming them, the full 2025 ISG Provider Lens™ Microsoft AI and Cloud Ecosystem report for Australia is available to subscribers or for one-time purchase.
