IT market research firm IDC says that forward looking Australian organisations are leveraging cloud services as a foundation element in a strategy to "transform products and services, business processes, and relationships with customers, partners and employees."
In 2011, IDC predicted a massive structural shift in ICT—from an era of '2nd Platform' client/server and PC based technologies to the '3rd Platform', one built on a foundation of mobile, social, big data and cloud that would foster great innovation. According to IDC, "This shift is now accelerating, opening up new market opportunities and disrupting traditional ones."
IDC says it is seeing organisations leverage cloud services as a foundation element in this strategy and layering on advanced analytics, collaboration capabilities and new technologies to drive rich customer experience, speed to market of new products/services, creative digital marketing, mobile commerce and optimisation of operational efficiencies.
Raj Mudaliar, senior market analyst, IT & cloud services research at IDC Australia, said: "As we look ahead to 2015 and beyond, the industry is entering the most critical period yet in the 3rd Platform era: the 'innovation stage', primarily characterised by value creation across industries and a new wave of core technologies (innovation accelerators such as Internet of things (IoT), cognitive systems, pervasive robotics, 3D printing, and so forth) that radically extend the 3rd Platforms' capabilities and applications."
Axelera’s Enterprise Sales & Marketing Manager, Jorge Villalpando, said: “Innovation is the mother of progress. Business that move onto a serviced model for IT will have more resources and more time to identify how they can gain competitive advantage from a new revenue stream - all because of mobility, improved services and reliable IT”
IDC's Australia Ecosystem Study 2014 revealed that the top five IT categories in which enterprises intend to increase spending in 2015 are business continuity and disaster recovery solutions, business analytics, infrastructure audit, ITSM and security.
IDC forecasts total public IT cloud services (software as a service [SaaS], platform as a service [PaaS], and infrastructure as a service [IaaS]) spending in Australia to grow from $909.2 million in 2014 to over $1.7 billion in 2018, a compound annual growth rate of 17.2 percent, which is approximately eight times the growth rate of the overall IT services market. SaaS, which accounts for nearly 60 percent of 2014 public IT cloud services spend, will continue to dominate public IT cloud services spend, IDC says.
IDC believes that PaaS and cloud storage services will be the two fastest growing categories, growing at 40.3 percent and 31.7 percent CAGR respectively for the five-year period from 2014 to 2018, driven by developer community adoption and big data-driven solutions.
Villalpando said: “Industries that fail to recognise cloud as an enabler of the workforce and business growth will continue to see their bottom lines decline.The question is, when is it too late?”
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