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ICT Investment Trends in Australia: Smart cities and digital innovation driving ICT investments

ICT Investment Trends in Australia: Smart cities and digital innovation driving ICT investments

Summary

Digital Transformation Agency (DTA) of Australia proposed a corporate plan for 2017-20 to enable the delivery and governance of digital and ICT investments. DTA is looking to partner with commonwealth agencies to deliver products and programs for ICT and digital transformation of government. Additionally, it is also aiming to develop operating and funding models for ICT and digital platforms that can be reused across government institutions.

In 2016, Australian enterprises allocated a major portion (74%) of their ICT budgets collectively to the hardware, IT services, software, and communications segments.

After an unexpected economic contraction in Q3 2016, Australia is well on course to attain a sustainable economy growth for the rest of 2017, thus providing a positive outlook for ICT investments. Network and communications equipment, software licenses, application services, and network services are the segments primarily attracting a major proportion of the budget allocations in their respective domains of hardware, software, services, and telecommunications.

Cloud computing services are witnessing an increased interest from Australian enterprises primarily driven by the benefits of high scalability, flexibility, cost reduction, and reliable business continuity plans. IoT has emerged as the next ground-breaking technology segment and Australian enterprises are inclined towards investing in this domain.

The report ICT Investment Trends in Australia illustrates the core technologies that enterprises are investing in, including enterprise applications, business intelligence, IoT, and cloud computing. The survey also highlights the approach to purchasing technology adopted by enterprises in Australia.

In particular, it provides an in-depth analysis of the following -

  • How ICT budgets are set to change in 2017 in terms of their overall size.
  • Allocation across the core elements of IT spend, including hardware, software, services, communications, and consulting.
  • Distribution of ICT money in areas such as the networks, applications, service desk, and data centers.
  • Which ICT functions Australian enterprises are interested in outsourcing.
  • Australian enterprises’ investment priorities based on their budget allocations across core technology categories such as enterprise applications, business intelligence, IoT, and cloud computing.
  • Factors that are influencing Australian enterprises’ investments in each technology category.
  • How Australian enterprises’ IT budgets are currently allocated across various segments within a technology category.
  • Australian enterprises’ distribution of their ICT budget across various segments within a technology category.
  • Vendor satisfaction ratings for various core and advanced technology categories.
  • Insight into Australian enterprises’ preferred buying approaches.
  • Business objectives that Australian enterprises are looking to achieve through their IT investment strategies.
  • Factors that are influencing Australian enterprises’ decisions to select an ICT provider.
Companies mentioned in this report: IBM, Microsoft, HPE, EMC, Informatica, Adobe, AllScripts Healthcare, ADP. Google, Cisco, Apple, Intuit.

Scope
  • GlobalData’s survey of 124 Australian enterprises reveals that they are keen on investing in various ICT domains.
  • Network and communications equipment, software licenses, application services, and network services are the segments primarily attracting a major proportion of the budget allocations in their respective domains of hardware, software, services, and telecommunications.
  • Cloud computing services are witnessing an increased interest from Australian enterprises primarily driven by the benefits of high scalability, flexibility, cost reduction, and reliable business continuity plans.
Reasons to buy
  • Understand how the Australian enterprise ICT landscape is set to change in 2017 to prioritize your target market
  • Comprehend how ICT money are being allocated by Australian enterprises in specific verticals and size bands to improve your market penetration
  • Make effective business decisions by recognizing the opportunities within each of the core areas of ICT spend (hardware, software, IT services, telecommunications, and consulting)
  • Realign your sales initiatives by understanding the current strategic objectives of Australian enterprises
  • Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (enterprise applications, business intelligence, IoT, and cloud computing)
  • Prioritize your focus areas by understanding which factors are influencing Australian enterprises’ decisions when selecting an ICT provider
  • Understand the changes in customers’ priorities and identify the business objectives that Australian enterprises are looking to achieve through their ICT investment strategies


  • Key findings
  • Key implications for ICT vendors
  • The propensity to embrace technological innovations is driving ICT investments among Australian enterprises
  • Survey demographics
  • A major proportion of Australian enterprises aim to increase their ICT budget in 2017
  • Hardware and IT services are the predominant areas of ICT investment in 2017
  • Network and communications equipment primarily dominate the ICT hardware budget
  • Software licenses constitute the largest share of software budget allocations among Australian enterprises
  • Application services are dominating third-party IT services expenditure
  • Australian enterprises look to attain a robust communication network by investing in various segments of telecommunications
  • Cost effectiveness and higher scalability and flexibility are driving Australian enterprises to invest in SaaS
  • Australian enterprises are vying for secured solutions by allocating a major portion of their cloud computing budget to private cloud
  • Australian enterprises invest in data centers, making it a critical asset for their day-to-day operations
  • Applications and infrastructure outsourcing are the most popular outsourcing functions among Australian enterprises
  • Enterprise resource planning and vertical-specific solutions are expected to gain traction among Australian enterprises
  • Adobe is the most popular enterprise solutions vendor among Australian respondents
  • The majority of Australian enterprises currently deploy analytics solutions
  • A significant proportion of Australian enterprises use IMB's BI solutions
  • Network sensors are expected to gain increased prominence among Australian enterprises in the next two years
  • Google leads the list of IoT vendors among Australian enterprises
  • Hybrid cloud is expected to witness increased attention from Australian enterprises in the next two years
  • Microsoft leads the list of cloud computing vendors among Australian enterprises
  • Enhance decision making is the prominent business objective influencing IT investment strategy
  • Expertise in your industry and leading-edge technology remain the most important criteria in choosing an ICT provider
  • Individual business units with IT guidance make the decisions for the purchase of voice/video/collaboration products for the majority of respondents
  • Appendix

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