Half of all enterprise workloads, about 300 million, will exist on the public cloud by 2030, VMware's CEO Pat Gelsinger said on Thursday at vForum Sydney. He also dismissed the idea that cloud, with the efficiencies it brings, will decrease the size of the IT market. Gelsinger believes cloud technology will scale the IT market -- there will be greater opportunities for enterprises to invest in and exploit IT. At vForum, he recalled the time he was the chief architect and design manager for the Intel 80486 or i486 microprocessor, which was more than three times faster than its predecessor 80386. Following the invention of the i486, marketers said that faster microprocessors would decrease the size of the microprocessor market.
Australian CIOs are shifting their focus away from reducing operational costs and towards developing new products and services, according to new research by analyst firm Telsyte. The Telsyte Australian Digital Workplace Study 2017, which surveyed 420 CIOs and IT decision makers, found that Australian enterprises are spending more of their IT budgets on product development, making it their number one priority compared to two years ago when their focus was on reducing operational costs. The reason for this reshuffling of priorities, according to Telsyte, is so that enterprises can avoid becoming irrelevant in the face of domestic and international competition. "A critical tipping point has been reached with Australian organisations rapidly adopting emerging technologies, developing new products and services, and looking to ICT to build competitive advantage in the face of increased global competition, and driving an intelligent automation revolution," said Telsyte Managing Director Foad Fadaghi. To achieve digital transformation, CIOs are collaborating more with leaders in other business units within the organisation where IT spending is increasing.
Australian companies that embrace experimentation, strategic risk taking, and constant learning experience better outcomes from their digital transformation programs, a new Microsoft study has found. Microsoft recently conducted interviews with 30 senior leaders in both public and private sector organisations to better understand the success factors and obstacles involved in digital transformation, which the tech giant defines broadly as "harnessing new technologies to improve business outcomes". Embracing digital transformation: Experiences from Australian organisations states that there is no right way to approach digital transformation; however, most Australian organisations opted for a "test and learn" approach involving discrete projects and experiments, rather than structured programs. This experimental approach allowed for faster iterations and encouraged buy-in from the rest of the business, according to Microsoft's research. Improving customer experience remained the top driver and starting point of digital transformation.
More than half of all Australian CIOs and IT leaders will be increasing their investment in public cloud infrastructure as a service (IaaS) in the upcoming year, according to a new study by analyst firm Telsyte. The Australian IaaS market is expected to reach AU$621 million by the end of 2016, representing more than 60 percent growth since 2015. Telsyte has also predicted that IaaS expenditure will surpass AU$1 billion by 2020. The increase in spending is being driven by a shift in IT priorities, according to Telsyte, with IT infrastructure management becoming a top concern for Australian CIOs in the past 12 months, matching security for the first time. The Telsyte Australian Infrastructure & Cloud Computing Market Study 2017 also showed that big data analytics, storage, Internet of Things (IoT), artificial intelligence, and process digitisation are all driving the demand for cloud services.
Australia's Internet of Things at home market grew 55 percent in 2017 to reach AU$583 million, according to Telsyte, driven by a rapid uptake of smart speakers and increasing internet connectivity for appliances such as air conditioners and security cameras. The Telsyte Australian IoT@Home Market Study 2018 revealed that the average Australian household now has 17.1 connected devices in 2018, up from 13.7 in 2017. Telsyte said an "internet-connected device explosion" will drive this number to 37, or 381 million devices nationally, by 2022. The Internet of Things explained: What the IoT is, and where it's going next. "Building connectivity into consumer products will allow manufacturers to develop new business models and provide intelligent services that not only change consumers' lifestyles, but disrupt a number of traditional industries," said Telsyte managing director Foad Fadaghi.