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Australian government doubles down on AWS

Federal government signs three-year whole-of-government agreement with Amazon Web Services, expanding access to cloud services for all levels of government

The Australian government has deepened its reliance on Amazon Web Services (AWS), signing a three-year whole-of-government agreement that expands access to cloud services for all levels of government.

The Digital Transformation Agency (DTA) announced the deal on 31 January 2025, building on a previous agreement signed in 2019. The arrangement promises improved value, reliability and security, while streamlining procurement processes and strengthening contractual terms.

This agreement underscores AWS’s position as a major player in Australia’s public sector digital transformation. Over 140 Commonwealth, state and territory agencies already use AWS for critical services in transport, health, education and tax collection.

The renewed partnership aims to extend this reach to all public sector entities, from federal agencies to local councils.

It will also focus on enhancing skills in the Australian public service, building on previous investments in cloud upskilling to equip public sector employees with the expertise to use and manage AWS technologies effectively.

DTA CEO Chris Fechner noted that with so many agencies already relying on AWS, the agreement is expected to enhance the value, reliability and security of government cloud services, as well as “drive better contract performance, vendor accountability and maximise value”.

The three-year term is designed to offer flexibility and value for money while ensuring continuity of existing services. This is achieved through a pre-negotiated framework of terms and conditions, simplifying procurement for individual agencies.

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However, agencies are still required to “undertake an approach to market to guarantee a competitive outcome”, addressing concerns about limiting competition and potentially hindering adoption of alternative cloud providers in whole-of-government arrangements.

“AWS is pleased to continue our long-standing partnership with the Australian government through this new and enhanced whole-of-government arrangement,” said Louise Stigwood, managing director for AWS public sector in Australia and New Zealand.

“This arrangement includes access to more than 240 AWS services including leading artificial intelligence [AI], security and quantum technologies to enable faster delivery of citizen-centric services. Our investment in Australian infrastructure, workforce upskilling and support for local partners enables sustainable economic growth and technological advancement in Australia. AWS looks forward to continuing our collaboration with the DTA and public sector agencies to accelerate Australia’s digital future and create lasting value for citizens.”

AWS has been making inroads in Australia’s public sector since 2018, when agencies were allowed to run highly sensitive workloads with the protected security classification in the AWS Sydney cloud region.

More recently, in July 2024, the Australian Signals Directorate teamed up with AWS to build a Top Secret (TS) Cloud for Australia’s defence and intelligence community agencies to securely host the country’s most sensitive information.

The government is expected to invest at least A$2bn over the next decade in the partnership, through which AWS will engage Australian businesses to design and build the TS Cloud, driving innovation and job creation in cyber security, data analytics and cloud computing.

The TS Cloud builds on AWS’s planned A$13.2bn investment in Australian infrastructure to 2027 – the largest tech investment in Australia’s history, supporting the creation of 11,000 local jobs. This is in addition to the A$9.1bn AWS has invested in Australian infrastructure since 2012.

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