Digital transformation pressures driving software investments
SYDNEY, AUSTRALIA – Australian business software investments are shifting towards customisation and development driven by the pressure of business transformation, according to new research by emerging technology analyst firm Telsyte.
The Telsyte Enterprise Applications and Software Study 2017 investigates how software is procured and developed in Australian organisations, including the new challenges posed by large-scale IT transformation that is occurring in most organisations.
Telsyte’s research indicates enterprise software budgets are rising across the board, however, more organisations are turning their focus to developing software for better integration, customisation and digital product development.
Only 1 in 5 IT and business leaders surveyed by Telsyte indicated they had no plans on developing software to satisfy business needs.
New digital services driving Platform as a Service (PaaS) and custom development
“Developing new products and services is now a top priority for CIOs and the ability to develop applications faster and better integrate disparate data sources has become critical,” Telsyte Managing Director Foad Fadaghi says.
Telsyte found almost 4 in 5 enterprises are customising, or considering customising SaaS (Software as a Service) applications, creating an opportunity for better cloud integration, fit-for-purpose apps, mobility and better user interfaces.
The high rate of corporate software development, combined with the ease at which development can occur in the cloud, is creating a healthy appetite for PaaS with approximately 70 per cent of Australian enterprises already using PaaS, or planning to adopt it.
Telsyte research indicates most (85%) organisations are looking to increase their PaaS investments in 2017 and beyond.
Similarly, 80 per cent of IT leaders interviewed plan to increase their SaaS budget over the next 12 months with a massive opportunity for vendors to modernise legacy systems.
Most (63%) CIOs report a need for social CRM features to support digital programs, however, only one third claim they have social features in their CRM.
Despite the arrival of machine learning and AI functionality, most CIOs still consider core operational features, upfront costs and return on investment to be the main factors influencing the procurement of enterprise applications.
About the Telsyte Enterprise Applications and Software Study 2017
The Telsyte Enterprise Applications and Software Study 2017 is a comprehensive 83-page report which provides subscribers with key market insights across many aspects of the changing landscape for enterprise applications in Australian organisations including the challenges that organisations are facing; how they are reacting to the disruptive trends; market overviews; usage and intentions; budget and spending; and forecast assumptions.
Some of the key questions answered in the study include:
How has digital disruption impact the ICT agenda for Australian organisations?
What are the key themes for transformation and business improvement?
How are software delivery models in Australian enterprises changing?
What challenges does ERP and CRM face in the age of digital disruption?
Can PaaS deliver on the innovation opportunity?
For further information on licensing the study or media enquiries contact:
Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Twitter: @foadfadaghi
Email: ffadaghi@telsyte.com.au
Telsyte’s emerging enterprise technology research program provides leading insights into the technologies and services that are re-defining how Australian organisations, including the public sector, manage operations and innovate with new products and services.
In preparing this study, Telsyte used:
An online survey of a representative sample of Australians CIOs and IT decision makers with 269 respondents completed in September 2016.
The research was conducted among businesses with more than 20 employees.
Interviews conducted with executives from software vendors, system integrators, hardware and big data software providers, as well as their channel partners.
On-going monitoring of local and global market and vendor trends.
About Telsyte
Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC Technology.
The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.