LONDON--(BUSINESS WIRE)--Technavio’s latest report on the IT spending market in Australia provides an analysis of the key trends expected to impact the market through 2015-2019. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
The IT spending market in Australia is expected to exceed USD 73 billion by 2019, growing at a CAGR of over 6%.
According to Amit Sharma, lead analyst at Technavio for IT spending by region, “Companies operating in several industry verticals in Australia are implementing IT solutions, such as software, hardware, and IT services, to manage their costs and improve operational efficiency. Companies are investing between 4% and 6% of their budgets in IT solutions, depending on the size of their business and the industry vertical in which they are operating.”
The top four emerging trends influencing the IT spending market in Australia according to Technavio’s ICT research analysts are:
Increasing adoption of activity based working
Activity based working is the process of working in an organization with shared resources, a managed workplace, and electronic devices, such as mobile phones, desktops, and application services to increase the productivity of the organization. It reduces the operational costs of the organization by reducing real estate costs and capital expenditure, and by improving efficiency.
Australian companies are gradually adopting activity based working to increase their return on investment (ROI). The digital infrastructure of organizations is changing, and top management are using more connected devices and shared IT services to improve their employees' performance. IT investment in activity based working in Australian firms is increasing as the firms are witnessing tangible benefits.
Increased adoption of IoT technology
IoT is one of the most sought after innovations in the IT industry, and it is going to change the IT industry. Connected devices are going to hit the market by 2019 and many industries, including airline, real estate, online travel agencies, insurance, and telecommunications, are set to invest in IoT devices.
With the help of IoT technology, physical objects can interact with each other and create a digital ecosystem, where several devices can share information. Hospitals can easily track pacemakers from a remote location; room temperatures in hotels can be automatically adjusted; and production lines in manufacturing companies can be easily streamlined through the implementation of IoT technologies.
Australian company, Netcomm Wireless, which manufactures M2M devices, is partnering with US-based Arrow Electronics to provide IoT gateways. IBM is providing IoT technologies in Australia to conduct business in a virtual space by connecting millions of physical objects for information sharing.
Shifting to hybrid cloud model
The hybrid cloud deployment model, a combination of private and cloud computing models, is witnessing significant demand in the Australian cloud computing market, and is changing IT in radical ways. Compatibility, agility, and ease of use are the fundamental features of cloud computing that help to simplify IT solutions in any organization. Firms are increasingly adopting cloud computing to meet their strategic IT goals and to implement innovative technological solutions that are cost-efficient and agile.
“Over the coming years, more than 90% of organizations are planning to deploy the hybrid cloud computing model as it is also helps in IT budgeting decisions as they do not have to make a one-time payment to implement cloud computing solutions,” says Amit. It also provides flexibility in the location of data centers in onsite or offsite locations with enhanced data security and compliance.
The Australian Government is funding the implementation of cloud solutions to update its agency solutions database, to relocate sensitive data to a secure location, to review data centers as a service, to form a cloud service panel, and for the storage and processing of Australian Government information.
BM, HP, SAP, and VMware are some of the leading vendors in Australia that are providing hybrid cloud computing solutions.
Rising demand for augmented reality
Augmented reality technology is witnessing gradual traction in the Australian market, and many firms are investing in this technology. Increased adoption of smartphone technology in Australia is also driving this market. Augmented reality is helping customers obtain information through mobile phone applications in the banking system. Print media and the fast moving consumer goods (FMCG) industry are also using augmented technology to increase their businesses. Pepsi and Heinz have tested augmented reality technology provided by Blippar.
Some of the top vendors in the IT spending market in Australia, as researched by Technavio analysts are:
- Dell
- HP
- IBM
- Netapp
- Lenovo
Browse Related Reports:
- IT Market in Australia 2015-2019
- Enterprise ICT Spending Market in Australia 2015-2019
- E-Commerce IT Spending Market In China 2015-2019
Purchase these three reports for the price of one by becoming a Technavio subscriber. Subscribing to Technavio’s reports allows you to download any three reports per month for the price of one. Contact enquiry@technavio.com with your requirements and a link to our subscription platform.
About Technavio
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
If you are interested in more information, please contact our media team at media@technavio.com.
