Businesses in Wales that use cloud computing contributed £1.4 billion to the regional economy over a 12-month period, according to a study from Public First on behalf of Amazon Web Services (AWS).
The study, based on a survey of more than 2,000 senior business decision-makers, shows that cloud technology is a key driver of economic growth and digital transformation across Wales, said AWS.
The study also suggests that an even greater adoption of cloud and AI technology could generate an additional £1.1 billion for the Welsh economy.
Cloud computing is the on-demand delivery of IT resources over the internet with pay-as-you-go pricing. Instead of buying, owning, and maintaining physical data centres and servers, customers can access technology services, such as compute power, storage, and databases, on an as-needed basis from companies like AWS. This flexibility helps businesses reduce costs, boost productivity, and drive innovation, making cloud computing a key enabler of digital transformation, the firm said.
The research shows that two thirds (66%) of small and medium-sized businesses (SMBs) in Wales currently utilise cloud computing, while a further one in three (34%) SMBs have implemented Artificial Intelligence (AI) technology to enhance their operations.
One organisation that has embraced cloud technology is the Driver and Vehicle Licensing Agency (DVLA), the government agency responsible for maintaining accurate records of more than 52 million drivers in Great Britain and more than 46 million vehicles across the United Kingdom, maintaining the registration and licensing of drivers in Great Britain. The DVLA worked with AWS to modernise its online platforms and migrate to the cloud.
Swansea-based Tom Brewer is the DVLA’s Head of Service Creation. His team is responsible for the organisation’s digital development of customer-facing web services and web channels.
“The main motivations for this move to the cloud were consistency, cost and the ability to use services that we couldn’t have otherwise,” Tom said.
“We use upward of 40 AWS services, and these have contributed greatly to what we can offer our customers, with the inherent security, reliability and efficiency that cloud computing enables. We can deliver the same results as before but much faster and at a lower cost.”
Speaking on how the adoption of cloud computing has helped transform the DVLA, Tom said:
“A key example of the success of cloud computing is our Driver and Vehicles account service. Before, UK citizens had to look at the GOV.UK website and search for each individual service, but we’ve created a portal where, in future, customers will be able to find all DVLA services in one place. So far, we have added several services since launch, including ‘Drivers First Provisional’ and ‘Ten Year Renewal’, along with new features like digital vehicle tax reminders and a ‘go paperless’ option to stop receiving printed vehicle tax reminders in the post. Delivery of these services has been made faster and easier through use of cloud computing, and being able to collate different services within one platform has made everything much simpler for us and for our customers.”
DVLA are a major provider of public services in the UK, and so during the Covid-19 pandemic DVLA used cloud computing to deliver digital services in response to rapidly changing demands. By leveraging the DVLA’s cloud platform, the DVLA was able to deliver digital services in a matter of weeks compared to the months it would traditionally have taken. This helped to reduce waiting times for driving licences, which was vital for key workers and enabled critical healthcare and transport services to get more ambulances, buses and lorries on the road at a time when they were most needed.
In addition to economic benefits, the research also shows that cloud technology presents a significant opportunity for workforce upskilling.
Almost one in three (31%) businesses in Wales are currently considered digital leaders — who proactively use technology to deliver results and improvement to an organisation.
To help boost the number of digital leaders in Wales and across the UK, AWS has launched learning and skills programmes including AWS Educate, AWS Academy, AWS re/Start and AWS Skills to Jobs Tech Alliance. AWS has also launched free trainings via AWS Skill Builder, a digital learning experience that allows anyone with an internet connection and a desire to learn to access over 600 free, on-demand courses in 14 different languages.
Phil Le-Brun, Director, Enterprise Strategy at AWS added:
“We are proud to support organisations in Wales on their digital transformation journey. Cloud computing and AI are powerful tools that enable companies to innovate and stay competitive in their sectors as well as drive economic growth. We look forward to supporting the increasing number of businesses in Wales who are embracing cloud technology to fuel their growth.”
