Solving Compliance and Skills Challenges: The Future of Cloud Innovation in Australia with Sarthak Moghe

Sarthak Moghe on Australia's cloud adoption: growth drivers, regulatory challenges, and the skills shortage impacting finance, government, and retail sectors

Australia's cloud market has matured beyond cost-saving discussions and is now the primary engine for national innovation and competitive advantage across its core industries.

In this scenario, understanding the nuances of this transformation is critical for any business leader in the region. To explore this, we spoke with Sarthak Moghe, Head of APAC Cloud Architecture and Engineering at Oracle, a cloud expert whose on-the-ground experience provides a unique lens into this rapid evolution.

We delve into the industries leading the charge, the complex regulatory landscape, and the critical skills needed to power Australia's digital future.

Interview with Sarthak Moghe

How is cloud adoption growing in Australia, and which industries are leading? 

From my perspective, the conversation around cloud in Australia has fundamentally shifted. It's no longer a question of if businesses should adopt the cloud, but how and how fast. The growth is moving beyond simple "lift-and-shift" migrations to a more sophisticated, cloud-native approach. We're seeing a deep integration of cloud services into core business strategies.

The financial services sector is undoubtedly a leader. Initially cautious, banks and insurance companies are now aggressively leveraging the cloud for everything from secure data analytics to developing innovative digital banking platforms. The scalability and security offered by major cloud providers have become critical for them to compete with nimble fintech startups.

The public sector has also become a major driver.Government agencies at both the federal and state levels are pursuing "cloud-first" mandates to deliver better citizen services, improve operational efficiency, and handle data with greater security.

Finally, the retail industry is using the cloud to power e-commerce, personalise customer experiences with AI and machine learning, and optimise complex supply chains.

What are the main regulatory and compliance challenges for cloud in Australia?

Navigating the regulatory landscape is one of the most significant challenges I see clients facing. The core issue is data sovereignty. Australia has strict rules on how personal data is handled, stored, and protected. This means businesses can't just choose a cloud region based on cost; they must ensure Australian data is handled in a way that complies with these laws, which often means keeping it within Australia's borders.

For specific industries, the compliance burden is even higher for example In finance and healthcare, that set a very high bar for managing data in the cloud. Proving compliance requires robust governance, constant monitoring, and the right architectural choices, which can be complex, especially in a multi-cloud environment. It’s a continuous effort, not a one-time setup.

What factors are driving the growth of the cloud market in Australia?

While cost savings were the initial hook, the real drivers today are far more strategic.

1. Business Agility: The primary driver I see is the need for innovation. The cloud allows organisations to spin up resources, test ideas, and launch new products quickly and in a cost-efficient way. This ability to pivot quickly is a massive competitive advantage.

2. Access to Innovation: Cloud platforms are not just about servers and storage anymore. They are innovation ecosystems. Businesses are tapping into advanced services like Artificial Intelligence (AI), Machine Learning (ML), and big data analytics that would be prohibitively expensive and complex to build on-premise.

3. Resilience and Scalability: More enterprises and business are realising that meeting growing customer demands while ensuring the degree of resiliency and compliance is best met with cloud’s elastic and instantly scalable model.

How are businesses managing the cost of cloud services compared to the benefits?

There's a common misconception that the cloud is automatically cheaper. In my experience, without proper management, costs can easily spiral. The key is shifting the conversation from pure cost to business value.

Mature organisations are moving beyond just tracking their monthly bill. They are adopting FinOps (Cloud Financial Operations), a cultural practice that brings financial accountability to the variable spending model of the cloud. This means cross-functional teams from finance, tech, and business work together to make trade-offs between speed, cost, and quality.

The real benefit isn't about saving 10% on infrastructure; it's about enabling a new million-dollar revenue stream or getting a product to market six months ahead of the competition. When you frame the cost against that kind of value, the investment makes perfect sense.

What skills shortages affect the Australian cloud industry today?

The skills shortage is acute and a significant issue on cloud momentum in Australia. A country with a comparatively small population, the demand outstrips the supply for specialised talent. We aren't just short on "cloud engineers." We need more of:

• Cloud Security Specialists: Professionals who understand how to secure data and applications in a complex, multi-cloud world are incredibly rare and valuable.

• Data Engineers and Scientists: There's a huge demand for people who can build data pipelines and apply AI/ML models on cloud platforms 

• Cloud Architects: We need more people who can see the big picture—individuals who can design complex, secure, and cost-effective cloud solutions that align directly with business goals. They are the bridge between the technical and strategic worlds.

What new technologies will shape the future of cloud adoption in Australia?

Looking ahead, a few technologies are set to redefine the future of cloud in Australia.

Generative AI is the most obvious one. The enormous computational power required to train and run large language models is only practical in the cloud.We'll see businesses integrating GenAI services into many facets of their operations, from customer service to software development.

We'll also see the continued rise of serverless computing and containerisation (like Kubernetes). These technologies allow for even greater efficiency and abstraction, letting developers focus on writing code without worrying about the underlying infrastructure.

Finally, edge computing will become increasingly integrated with the cloud. For a country with vast distances and industries like mining, agriculture, and logistics, the ability to process data locally on "the edge" and sync it back to a central cloud is a game-changer for real-time decision-making.