Cloud Drives Data#3’s Growth

Data#3, a business solutions provider, has released an impressive result for the first half of 2017. It reported  a revenue of AU$506 million, and a net profit of AU$5.8 million. These numbers reflect a 34 percent increase when compared to the same time last year.

Revenue for the first six months that ended on December 31, 2016 included a revenue of AU$58 million from the cloud. This represents almost 11.6 percent of the total revenues of the company, and it reflects the growing contribution of cloud to its overall business.

Out of this, Data#3’s public cloud solutions accounted for AU$53.3 million, representing a 32.5 percent increase. It’s on-premise solutions also saw a steady growth, as it registered a nine percent growth to contribute AU$360.7 million. Product revenue from hardware and software sales grew by 11.5 percent, as it increased from AU$37.1 million to AU$413.9 million.

Data#3 is a publicly traded company in the information and communication (ICT) sector of Australia. It is headquartered in Brisbane, but its operations span across entire Australia. it was founded in 1977 and was established by Powell, Clark and Associates (PCA). With about 900 employees, this company has a firm presence in Australia’s IT market.

Data#3’s result brings up many interesting aspects of its business. Firstly, it reflects the growth of the company from a product-centric company to that of a service-centric one, to meet the changing needs of the IT environment. According to Laurence Baynham, the CEO of Data#3, this company has a strategic growth comprising of three long-term objectives, which are to deliver sustained growth, increase services and grow cloud services revenues.

These objectives show the importance given by Data#3 to its cloud businesses, as the company firmly believes that cloud is an important component of its future business strategies. Already, the company has a list of impressive clients in the cloud market. An example is the Victoria State Emergency Services, for which Data#3 built an emergency solution using Microsoft Azure. With this, Victoria became the first emergency organization in Australia to tap into the power of public cloud.

Secondly, cloud can become an integral part of Data#3’s future operations as the company has opined that it is witnessing a rapid increase in the demand for cloud-based services, and it wants to position itself to meet this demand. In this sense, we can expect the company to make heavy investment in cloud infrastructure over the next few years as it transitions itself to a cloud-based company.

These numbers also show the growing importance of cloud, as companies position themselves to make the most of it. In many ways, it also reflects the penetration of cloud in Australian markets, as much of the clients of this Brisbane-based company is in Australia. Recently, Alibaba also expanded its operations to cater to the growing demands of the Australian cloud market.

Lastly, the company has announced that it will be establishing a health sector practice, similar to the investments it has made in education. We can expect many practices in health sector to be driven by cloud.

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