Moving Beyond Legacy IT

A recent Mandala report, commissioned by Microsoft in September 2025, revealed a significant challenge. More than 70% of Australian government agencies still depend on legacy IT systems. These outdated systems increase cybersecurity risks, reduce productivity, and slow innovation. The report also highlights the urgent need for cloud migration in Australia. It found that accelerating cloud adoption by five years could save taxpayers $3.4 billion within four years. It could also deliver up to $13.5 billion in savings by 2035. Even more importantly, Mandala estimated that modern cloud infrastructure could reduce breach-related costs by $178 million over the next decade. By preventing up to 70 cyber incidents, the shift to cloud becomes essential for both national security and long-term productivity.

The High Cost of Standing Still

Legacy IT systems once supported public administration. Today, however, they present significant vulnerabilities. One widely used government system recorded more than 1,650 known security issues after reaching end-of-life. Almost one-third of these vulnerabilities were classified as severe. Without security patches or vendor support, agencies remain exposed to cyber threats, outages, and data loss. With more than 30 systems set to retire in 2025, risks will only increase. Maintaining ageing technology is costly, inefficient, and extremely difficult to secure.

Cloud: The Engine of Modern Government

Mandala’s report identifies the public cloud as a core enabler of modern government services. Cloud platforms provide scalable computing power, improved efficiency, and a strong foundation for digital transformation.

Cloud technology enhances cybersecurity through:
Automated threat detection and real-time response
Continuous updates and patch management
Advanced encryption and active monitoring
AI-driven automation that reduces breaches and complexity

The report also links cloud adoption to AI-readiness. This step is essential for improving productivity across the public sector. Accelerated cloud migration could unlock an extra $5 billion in AI productivity gains over the next decade, representing a 63% efficiency increase.

Docuworx: Leading Secure Cloud Transformation in Australia

Docuworx is an Australian company specialising in secure cloud transformation through the DocuWare Cloud platform. With extensive experience in government and enterprise environments, Docuworx helps organisations move beyond legacy IT systems and adopt modern, intelligent cloud infrastructure. DocuWare Cloud, hosted in Microsoft Azure’s Australian data centres, ensures compliance, performance, and strict data sovereignty. It is ISO, GDPR, and SOC 2 certified, making it ideal for agencies that must meet high regulatory and security standards. Through Docuworx’s expert implementation, organisations benefit from:

Smooth migration from legacy systems
AI-powered document management and workflow automation
Enhanced cybersecurity with Azure’s global infrastructure
Reduced IT maintenance, allowing teams to focus on innovation

These advantages make Docuworx a trusted partner in secure cloud transformation across Australia.

Building a Resilient and Skilled Digital Ecosystem

Mandala’s findings show that cloud adoption strengthens Australia’s entire digital ecosystem. It supports the growth of local data centres, improves workforce skills, and boosts national digital capability. Working with Microsoft and other technology partners, Docuworx helps organisations modernise responsibly. Their solutions improve security, streamline operations, and build long-term digital resilience. This work supports the government’s mission to develop a secure, innovative, and productive digital future for all Australians.

The Way Forward

The case for cloud migration in Australia is no longer optional. It is essential. Mandala’s report shows that cloud modernisation can reduce cyber incidents, unlock billions in savings, and enable AI-driven productivity across the public sector. With Docuworx and DocuWare Cloud, organisations can move forward with confidence. They can eliminate legacy IT risks, strengthen cybersecurity, and lead with modern technology built for the future.

Explore how Docuworx Secure Cloud Storage solutions can support your organisation.

About the Author

Carlos Lucia

Carlos Lucia is an accomplished business leader and co-founder of Docuworx, a leading Australian company driving digital transformation across the Asia-Pacific region. With a proven track record in the document management industry, Carlos brings over four decades of expertise in sales leadership, business development, strategic marketing, and technology-driven process improvement. A trusted advisor to organisations seeking to modernise and streamline operations, Carlos combines a deep understanding of business finance with a passion for helping companies embrace the future of work through intelligent document management and workflow automation. Under his direction, Docuworx has empowered enterprises across a broad range of industry sectors, including education, finance, manufacturing, and government, to achieve compliance, agility, and growth through scalable digital solutions. Carlos is recognised for his ability to identify opportunities, establish lasting partnerships, and lead high-impact initiatives that deliver measurable results in today’s complex and rapidly evolving digital landscape.