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ICT investment trends in Australia; Enterprise ICT spending patterns through to the end of 2017

ICT investment trends in Australia; Enterprise ICT spending patterns through to the end of 2017

Summary
A significant research infrastructure, skilled and experienced workforce, and low development cost is making Australia a strategic location for a range of ICT activities. The Australian government is keen on promoting research and development in the ICT sector and has announced grants for expanding research capabilities to support the adoption of ICT.

Key Findings
Kable’s survey shows that a major proportion of Australian enterprises are planning to increase their ICT budgets either slightly or significantly in 2016

SaaS (software as a service) has been the most preferred cloud computing solution area in 2015, with the Australian enterprises spending 36% of their average ICT budget on this service

Meanwhile, the IT investment strategy of Australian enterprises is primarily guided by the business objectives of ‘increase customer satisfaction’, ‘improve supplier intimacy’, and ‘new products, services and business models’.

Synopsis
ICT investment trends in Australia presents the findings from a survey of 91 Australian enterprises regarding their Information & Communications Technology (ICT) investment trends. The survey investigates how Australian enterprises currently allocate their ICT budgets across the core areas of enterprise ICT expenditure: hardware, software, IT services, and communications. The report illustrates the core technologies that enterprises are investing in, including IoT, cloud computing, security services, and network services. The survey also highlights the approach to purchasing technology adopted by enterprises in Australia. Through Kable’s survey, the report aims to provide a better insight to ICT vendors and service providers when pitching their solutions to enterprises in Australia.

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

How ICT budgets are set to change in 2016 in terms of their overall size

Allocation across the core elements of IT spend, including hardware, software, services, and communications

Distribution of ICT Australian Dollars (AU$) 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 IoT, cloud computing, security services, and network services

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 and IT 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

Reasons To Buy
Understand how the Australian enterprises ICT landscape is set to change in 2016 to prioritize your target market

Comprehend how ICT Australian Dollars (AU$) are being allocated by Australian enterprises in specific geographies 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, and telecommunications)

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 (IoT, cloud computing, security services, and network services)

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 and IT objectives that Australian enterprises are looking to achieve through their ICT investment strategies


1 Trends in ICT budgets
1.1 Introduction
1.2 Survey demographics
1.3 ICT budget changes
1.4 ICT budget allocation by core technology area
1.4.1 Hardware budget breakdown
1.4.2 Software budget breakdowns
1.4.3 Third party IT services expenditure
1.4.4 Communications expenditure
1.4.5 Cloud computing budget
1.5 ICT budget allocation by function
1.6 Outsourced IT functions
2 ICT investment priorities and vendor satisfaction
2.1 Introduction
2.1.1 Internet of things (IoT)
2.1.1 Cloud computing
2.1.1 Security services
2.1.1 Network services
DT>3 ICT procurement trends
3.1 Introduction
3.2 Business objectives influencing IT investment strategy
3.3 ICT provider selection
3.4 Key decision maker for purchasing technology
4 Summary
4.1 Australian enterprises are earnestly investing in various ICT domains in 2016
5 Appendix
5.1 Definitions
5.2 Further reading
5.3 Contact the authors
List of Figures
Figure 1: Australian enterprise ICT survey industry breakdown
Figure 2: Australian enterprise ICT survey breakdown by size band (number of employees)
Figure 3: Recent and expected ICT budget changes among Australian enterprises
Figure 4: Australian enterprises’ (external) ICT budget allocation, 2014 and 2015
Figure 5: Australian enterprises’ average hardware budget allocation
Figure 6: Average allocation of software budgets in Australian enterprise market
Figure 7: Australian enterprises’ average IT services budget allocation
Figure 8: Australian enterprises’ average cloud computing budget allocation by technology
Figure 9: Australian enterprises’ average cloud computing budget allocation by implementation type
Figure 10: Australian enterprises’ ICT budget allocation by function, 2014 and 2015
Figure 11: Outsourced IT functions – Australian enterprises’ current and future outsourcing priorities
Figure 12: Enterprise applications – Australian enterprises’ current and future investment priorities
Figure 13: Cloud computing – Australian enterprises’ current and future investment priorities
Figure 14: Network services – Australian enterprises’ current and future investment priorities
Figure 15: Security products – Australian enterprises’ current and future investment priorities
Figure 16: Mobility – Australian enterprises’ current and future investment priorities
Figure 17: Vendor satisfaction among Australian enterprises
Figure 18: Business objectives and IT objectives which influence Australian enterprises' IT investment strategy
Figure 19: Factors influencing Australian enterprises' decision to choose an ICT provider

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