Cloud-based online messaging, marketing and analytics provider LivePerson has begun using a co-located data centre in Sydney to provide services for its local customers including Telstra, Qantas and Medibank.
A second data centre is situated in Melbourne to provide back-up and redundancy.
LivePerson Asia Pacific regional director Steve Fitzjohn said it had enough critical mass with its customer base and projected future demand, to use Australian-based data centres.
Prior to this announcement, customers were using international data centres in London, Amsterdam and the United States.
"Some of the privacy and security requirements when banks and financial services providers are looking to scale means they are a lot more comfortable when data is hosted in the country rather than in other regions," he said.
"We can see that government is going to start adopting this type of [digital] engagement with citizens. Hopefully in the next year or two digital will be well up on the radar for the government."
Using data centre infrastructure within Australia also means it can provide services with minimal latency.
"We are finding that the response times are slightly faster because they [customers] don't have to navigate other regions."
"The time is right for us to invest in local data centres to support regional expansion as some of our largest customers and prospects want a local hub for their growing volumes of data," he said.
Part of that regional expansion includes using data centres in Singapore and Hong Kong as sub-hubs.
"Those two regions are also financial hubs for the Asian region."
LivePerson operates in a number of verticals including finance, telecommunications, travel, insurance, utilities, retail and education.