Are the Data Centre and Webhosting companies in Australia set to double growth in 2016?

hosting  and data services compared in australia

Webhosting and data processing companies have been growing year on year in Australia and the popularity new smart devices is only increasing the need for data processing and infrastructure every year.

The big guns in the Data Processing Sector

 

The top players in data processing in Australia are

1. IBM (IBM A/NZ Holdings Pty Ltd – 2015 Revenue $168.1 million)

2. Global Switch Owned by British company Rueben Brothers

3. Equinix (Equinix Australia pty ltd)

Other big players are also Nextgen, Fujitsu (who has a data centre in Malaga pert) and NEXTDC LTD.

The data processing and webhosting industry has steadily grown over the past 5 years. Hewlett Packard is also a big player in the data processing and business process management in Australia. Hewlett Packard provides services like Analytics, Document processing, human resource and pay roll services.

Companies in the webhosting industry are primarily engaged in providing electronic data processing or hosting services like web hosting, Streaming of Audio and video, Hosting applications and Software in the cloud etc. A major user of data processing and Hosting infrastructure In Australia is the corporate sector like the banks and insurance companies who process huge amounts of data every day and the government Institutions like Customs and immigration, Australian tax office, Human Welfare, Department of finance and many more due to their data and transactional requirements. The big telecommunication companies are also big consumers of data and hosting infrastructure.

According to IBIS world report, with data sourced from the www.abs.gov.au , www.acs.org.au , and www.crn.com.au the data processing and webhosting services in Australia has had $1.2 Billion in revenue and a 2.3% annual growth.

 

xero accounting

A relatively new trend of “SaaS” which means delivery so software based service to clients is becoming popular. It’s based on usage based transactional services. This service enables companies to have multiple users accessing and using their service/ software on the cloud. A good example of this is the new XERO accounting company where you can just login from anywhere and update your accounts for your business, including from any smart device. These services use the cloud hosting infrastructure to do their processing.

The Hosting Sector in Australia

Hosting can be defined as the service that enables organisations and users to make their website accessible on the internet. Melbourne IT (www.melbourneit.com.au ) is one of the big players in Hosting in the Australian Market. Melbourne IT provides online business services such as domain registration, Critical Web hosting and Managed IT Services. In 2014, they acquired Domain registrar and hosting company Netregistry further expanding their database of customers.

The bigger chunk of the market is due to demand from the big finance, Insurance and banking companies and also government sector. The growth in this sector is also coming through corporate enterprises due to the sudden explosion of web based companies and ecommerce businesses.

Imports as becoming increasingly common due to overseas firms offering these services at a lower cost than their Australian counterparts.

Australian focussed companies tend to get domestic local hosting access, but for small businesses servicing overseas customers and traffic even international and US based webhosting seems to be a popular choice. New South Wales, Victoria and Queensland seem to the one of the biggest states to consume a lot of these data processing and hosting services and infrastructure.

Other related services like domain registration in Australia are more difficult to enter as registration licenses are difficult to obtain. Go daddy a popular American Company has managed to secure rights to sell Australian domains in recent years while the big player in hosting Melbourne IT is highly reliant on major clients in North America and Europe.

Top Australian and International Domain & hosting service providers

the US biggest domain name registrar and hosting company

1. Melbourne IT ( www.melbourneit.com.au )

Providing Domain registration and hosting services in Australia and overseas

2. Digital Pacific ( www.digitalpacific.com.au )

Providing managed hosting and domain registration services

3. Go daddy ( www.godaddy.com )

Providing Domain name services (Biggest worldwide registrar), Hosting and website related services for US and Australian markets

4. Bluehost ( www.bluehost.com )

They are a large American based company who provide hosting and domain names that are used by bloggers and small businesses.

The demand for online shopping and with the rise in entrepreneurs and new start-ups in Australia the growth and consumption of data and hosting could even increase more rapidly.

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