Big data surges as Australian organisations increase spending in 2017

Big Data budgets now rival CRM software

SYDNEY, AUSTRALIA – Australian enterprises are boosting their big data analytics capability by investing more in tools and services to transform business processes and create new products and services, according to new research from emerging technology analyst firm Telsyte.

Now in its third edition, the Telsyte Australian Big Data & Analytics Market Study 2017 reveals the demand for high volume data processing and real-time intelligence is growing strongly as organisations struggle to keep up with an explosion of data.

Telsyte’s maturity model which classifies the market into the maturity levels of static, active, tactical, strategic, dynamic and optimised, found that most (63%) enterprises are at a low maturity level. However, the rate of organisations with “strategic” to “optimised” Big Data maturity has risen sharply during the past two years.

Budgets are increasing with 83 per cent of Australian CIOs planning to invest more on big data in 2017, including hardware, software and services.

Intention to use big data analytics are high across a range of applications, including: financial modelling; customer interaction; security and fraud detection; retail sales and e-commerce; and IoT and machine-to-machine infrastructure.

Around a third of CIOs are looking to use big data analytics for sales and marketing applications, making it in the top three of line of business use cases. However, uptake is still lagging with only 15 per cent of marketing departments having implemented big data analytics.

Big data analytics now firmly on the software agenda

Big data and associated analytics is now in the same league as CRM and marketing automation for share of software budget, indicating its strategic relevance across a growing number of data sources, not just traditional databases.

Some 30 per cent of enterprises are using or planning to use big data for predictive analytics, indicating a strong requirement for these use cases.

Furthermore, big data analytics is now in top five of enterprises applications managed by third-party service providers indicating a lack of in-house capability to process large data sets.

Telsyte research shows more than half of Australian CIOs predict a five or more fold increase in the number of connected devices in their enterprise within the next five years. And a lack of a big data strategy is a blocker for IoT adoption in one in four organisations.

“Just collecting and processing data is half the story. Australian business leaders must use real-time analytics to gain business value from data and transform their decision making from reactive to proactive,” Telsyte Senior Analyst, Rodney Gedda, says.

The main benefits CIOs are looking to derive from a big data and analytics strategy are better productivity, improved decision making and better product and service development which is now the number one business priority for Australian IT leaders.

Telsyte research investigated the main barriers to the adoption of big data among Australian enterprises and factors like software costs, lack of in-house skills and IT infrastructure requirements are holding back broader adoption in Australia.

Telsyte research shows big data processing is already the number one use-case for high-performance computing and analytics and reporting is in the top five.

Big data managed services high on agenda in Australia

The Australian market for big data and analytics support partners is growing strong with global players like IBM, Amazon Web Services, Cloudera, Dell/EMC, Google, Microsoft, SAP and Oracle all vying for a slice of the boom in spending by buyers of big data.

Telsyte research found platforms and managed services top of the shopping lists for organisations embracing big data.

In addition to the multinational options Australia has a growing big data analytics industry with vendors like Contexti, EngineRoom.io and YellowFin offering a range of products and services in the space.

“The local big data services space remains ripe for consolidation with a number of service providers growing quickly in the past 12 months,” Telsyte Managing Director, Foad Fadaghi, says.

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

Rodney Gedda
Senior Analyst
+61 2 9235 5891
Twitter: @rodneygedda
Email: rgedda@telsyte.com.au

Telsyte’s big data and analytics research program provides leading insights into the technologies and services that are re-defining how Australian organisations, including the public sector, deploy and manage big data infrastructure and applications.

Telsyte’s Australian Big Data and Analytics Study 2017 is a comprehensive 98 page report and advisory service offering subscribers:

  • Impact of Big Data on IT priorities and spending of Australian businesses
  • Big data adoption and maturity levels
  • Drivers and inhibitors of Big Data adoption
  • Management of Big Data
  • Big Data adoption and insights across industry sectors including:
    •  Retail
    • Healthcare
    • Banking & finance
    • Insurance
    • ICT
    • Government
  • Impact of Big Data adoption
  • Vendor profiles SWOT analysis, including: SAS, Oracle, Cloudera etc.

In preparing this study, Telsyte used:

  • An online survey of a representative sample of 269 ICT decision makers across Australian organisations with greater than 20 employees.
  • Sampling was conducted on a size of spend weighting basis, with 61 per cent of respondents coming from organisations with greater than 200 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 delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Telsyte is an independent business unit of CSC.

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