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Cloud computing — where organisations run their IT applications remotely on computers operated by 'cloud service providers' — has grown rapidly in Australia, with major global players and a number of local companies entering the market.

Amazon Web Services (AWS) is by far the largest, and the financial results of one local cloud services provider, Bulletproof, suggest that the key to survival for local players will be in reselling and adding value to the likes of AWS rather than trying to compete by offering their own cloud services.

As an ASX listed company, Bulletproof offers one of the few insights into the financials of the Australian cloud computing market. For the first half of the 2015 financial year, it posted revenues of $11.9m, up from $8.1m the year previous. Revenue from its AWS-based cloud services in the same period was $4.2m, up from $0.8m. Revenue from cloud services based on its own infrastructure grew by only $0.4m.

Bulletproof CEO Anthony Woodward said the company had anticipated this trend some years ago.

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