OzTech: Digital-trend predictions for A/NZ businesses; Cloud spending to surpass $20B; Australia’s fibre rollout had marginal growth

OzTech Roundup is Computerworld Australia’s weekly look at the world of IT.

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IDC’s 10 digital-trend predictions for Australia, New Zealand businesses

Research firm IDC has published a list of 10 IT trends it expects organisations in Australia and New Zealand to adopt over the next five years as they move to become what IDC calls “digital-first” businesses.

The predictions are:

  1. By 2024, digital-first enterprises in Australia and New Zealand will enable empathetic customer experiences and resilient operating models by shifting 75% of all tech and services spending to as-a-service and outcomes-centric models.
  2. By 2022, 40% of publicly listed Australia and New Zealand organisations will reset cloud selection processes to focus on business outcomes rather than on IT requirements, valuing access to providers’ portfolios from device to edge and from data to ecosystem.
  3. 2023, 75% of Australia and New Zealand enterprises will use AI-assisted, cloud-linked governance services to manage, optimise, and secure dispersed resources and data. But 70% will not achieve full value due to IT skills mismatches.
  4. By 2022, 45% of large Australia and New Zealand enterprises’ IT budgets will be redistributed due to adoption of integrated as-a-service bundles in areas of security, cloud platforms, virtual workspaces, and connectivity.
  5. By 2026, industry leaders in Australia and New Zealand facing systemic or mandated transitions in the coming decade will triple IT spend for new environments but struggle to achieve the needed six-times gains in IT operational efficiency.
  6. By2024, 65% of publicly listed Australia and New Zealand organisations will gain twice as much, in terms of meaningful returns, on tech investments that augment employee and customer activities compared with ones that automate individual processes.
  7. By 2026, regional divergences in data privacy, in security, and in placement, use ,and disclosure mandates will force 80% of Australia and New Zealand enterprises to restructure their data governance processes built on an autonomic foundation.
  8. By 2023, 40% of publicly listed Australia and New Zealand businesses will shift half of their new technology hardware and connectivity spending to modernise and reconceptualise in-person experiences for customers and employees in their own locations.
  9. By 2025, 65% of publicly listed Australia and New Zealand organisations will have digital sustainability teams, tasked with assessing, certifying, and coordinating use of business and IT sustainability data and analytic platforms offered by ICT providers.
  10. By 2025, public enterprises’ valuations in Australia and New Zealand will be based as much on confidence in data controls for proper and effective use of data as in financial controls, focusing increasingly on spending on data-centric solutions.

Cloud spending to surpass $20 billion by 2025 in Australia

Spending on cloud computing in Australia is expected to surpass $20 billion by 2025, predicts research firm GlobalData. What will drive this growth is large-scale digital transformation initiatives taken up by businesses to counter pandemic-related operational issues.

According to GlobalData, more than 50% of the cloud market is made of public cloud services, including software as a service (SaaS), infrastructure as a service (IaaS), and platform as a service (PaaS). PaaS will be the fastest growing, GlobalData predicts; it sees an enterprise preference for cloud-native application development platforms due to its cost advantage and application management capabilities.

Australia’s fibre rollout had marginal growth

An analysis of broadband services worldwide has placed Australian fibre services in 41st place in a tally of 80 nations. The data is from 2020, and in that year, according to research firm Omdia’s Fibre Development Index Analysis, Australia’s rollout of fibre slowed, with the country dropping three places compared to 2019.

Omdia’s metrics have different sources, which include national statistics offices, national regulatory bodies, data from third-party specialist companies, and Omdia’s internal data sources.

An Omdia spokesperson told Computerworld Australia that Australia increased in each of the metrics, but the increases were marginal when compared to other countries. In particular, “FTTP [fibre to the preimses] coverage in particular only increased marginally over the year, and without greater rollout FTTH [fibre to the home] and FTTB [fibre to the business] penetration rates had also slowed. This also means that, although average broadband speeds are increasing, they are still well below the market leaders.”

Copyright © 2022 IDG Communications, Inc.

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