Denver’s cloud-based technology sector is growing faster than anywhere Else in the US, according to a new report from Accenture.
The Denver-based analytics firm’s research group found that Denver’s tech industry was growing at an average annual rate of 6.2 percent per year, far outpacing the national average of 3.4 percent.
The city’s tech scene has seen growth of over 100 percent from 2011 to 2016, and the average salary for a Denver-area web developer was just shy of $80,000 in 2017, up from $65,000 two years ago.
The study, which was released Wednesday, also showed that Denver had the nation’s third-highest rate of college graduates in 2018, at 21.7 percent, a number that was up from 19.7 in 2017.
But the city’s web development industry was not as robust as it was a few years ago, Accenture said.
While the city had the second-highest concentration of web developers with the highest average salaries at 34.9 percent, that number dropped to 29.1 percent in 2020.
That’s a slight improvement over 2017, but not enough to offset the decline in the tech sector.
The research also found that the industry was struggling to recruit a broader cross-section of developers than previous years.
“We are seeing an increasing number of developers who have less experience and are coming from less established companies, who are less likely to have previous experience with cloud technology,” said Accenture CMO David Ritchie.
The number of companies recruiting in Denver has fallen significantly since 2016, when there were almost 5,000 companies working in the technology space.
That number has since increased to just over 6,000, but the number of people working in tech jobs is still smaller than in previous years, Ritchie said.
That’s a good thing, said Jeff Stelzer, co-founder of cloud-software company Myspace.
“I think we’re seeing an influx of talent, and I think we’ll continue to see that,” he said.
“What’s encouraging is that the demand is growing.”
The number and size of developers also is changing.
There were more than 3,600 people working on cloud-services jobs in 2018 compared to just under 1,400 in 2016.
“The demand is getting bigger, and that’s the good news,” Stelker said.