Australian ICT Growth Driven by 3rd Platform Technologies, According to IDC
06 Feb 2014
Mobility, Cloud, Big Data and Social Business Underpin Continued Australian ICT Spending
SYDNEY, Australia, 6 February, 2014 - 2014 will continue to see some growth in the Australian telecommunications industry despite well-publicised declines in spending for PCs and servers. This growth is primarily driven by the technologies forming the four pillars of IDC's 3rd Platform — Big Data, cloud, mobile, and social.
Cloud services consumption will expand beyond IT to the business user as the cloud evolves into a cloud brokerage-based delivery model. Being a cloud broker will not be limited to the Service Provider (SP), CIOs can also take advantage of this model to become enterprise service brokers of both IT and business services.
For those enterprises looking to move beyond mobilising their people to mobilising their business process, IDC expects to see a shift from bring your own device (BYOD) to choose your own device (CYOD). The primary driver behind this is the complexity of delivering, managing and supporting mobile applications on the breadth of devices chosen and owned by the end user employee. For IT, it will be more manageable to limit the number of devices, form factors and operating systems.The CYOD model will help enable them to mobilise their business processes and deliver tangible business value to the organisation. BYOD will not go away, but without CYOD enterprises will continue to struggle to reap the benefits from these types of initiatives as the costs, including the costs of securing the devices and content as well as supporting the users, far outweigh the perceived productivity benefits.
Telecommunications service providers (SPs) and equipment suppliers will see significant changes based on the increasing role of software-defined everything, especially software-defined networks(SDNs). As SDN products and technologies are introduced into the market, customers will have greater choice not only in what products they purchase but also in how they design and build their networks to support application workloads.
Meanwhile, incumbent vendors will have to strike the right balance between responding to customers' calls for change, while defending their installed base and protecting investments in existing product portfolios. As a result, there will be a need for vendors and channel partners (resellers and integrators) to deliver SDN professional services, involving both consulting and implementation, to enterprise customers across a broad spread of vertical markets. Vendors and the channel will generate additional revenue from SDN professional services, while customers would benefit from the value such third-party services could bestow.
IT expenditure is also changing, not only will purchasing decisions and budgets move increasingly away from IT towards other line-of-business (LOB) managers, but also from capex to opex, with shorter ROI cycles. 2013 was the year of productivity and efficiency for the both SP and enterprises CIOs, for some organisations, this really means cost savings by another name. But many organisations are driving innovation through business process redesign, platform upgrades, and increased ICT investments, particularly mobility and cloud solutions. As cloud, Big Data, mobility and social business become more strategic to organisations roles such as "Director of Mobility" to oversee all aspects of mobility strategy and a role such as "Chief Data Scientist" will arise within those organisations.
Significant changes and delays will occur in the National Broadband Network (NBN) in Australia, based on the policies outlined by the new government, elected in Australia in September 2013.
New categories of devices will become increasingly important through the year, with most attention being paid to the many sensors and other devices powering the Internet of things (IoT), and wearable technology. The Internet of Things can be a daunting concept to many organisations, as it will fundamentally change life as we know it, although with great change comes great opportunity. For consumers, the way we consume content, communicate, monitor our health, live in our homes, and travel will be inextricably linked by these technologies. For companies, business models will be redesigned to deliver improved efficiencies and to change the customer experience. And for the vendors that will support this revolution, opportunities abound to create the new and innovative products and services that will change the world as we know it.
"The four pillars of IDC's 3rd Platform — Big Data, cloud, mobile, and social will really be the key growth drivers for 2014. Whilst the NBN may drive further consolidation in the telecom sector, any significant increases in service rollout will not start until 2015. Decisions around telecoms purchases, especially mobility, will be increasingly influenced by LOB executives, and we expect to see a new role emerging — a senior manager responsible for mobile strategy," said Graham Barr, Research Director, Telecommunications at IDC Australia.
The 3rd Platform marketplace will drive significant disruption through the market in 2014. This marketplace is being built on new technologies and new economic models with higher volumes, lower prices, and faster cycle times, delivering new solutions developed by many new developers and innovators"
INFORMATION FOR THE READER
On IDC’s website, www.idc.com this media release relates to document: #AU245803, Australia Telecommunications 2014 Top 10 Predictions
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