Beyond disruption: New Zealand organisations race to digital transformation success

Telsyte has published our latest digital enterprise research study for New Zealand.

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Commissioned by DXC.technology, the study provides a comprehensive view on the state of digital disruption and transformation across New Zealand organisations and the wider economy  - the key themes covered in the study include:

  • The impact of digital disruption on New Zealand organisations

  • The approach to digital transformation and non-IT business unit technology spending

  • How the CEO is becoming critical to digital transformation success

  • The role of AI in New Zealand workplaces

  • Factors affecting transformation failure

  • How cloud, 5G, IoT and customer experience technologies drive digital agendas

 

For further information, please see the following press release by DXC Technology:
https://www.dxc.technology/au/press_releases/146680-dxc_technology_study_finds_new_zealand_businesses_have_less_than_two_years_to_adopt_digital_before_disruption_hits


The full report can be downloaded at:
https://www.dxc.technology/nz/flxwd/146673-beyond_disruption

 

For further information on the study or media enquiries please contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

 

 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. For more information visit www.telsyte.com.au

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.

Australian IoT@Home market cracks $1bn, paving the way for IoT-Commerce services

Australian households forecast to have more than 37 connected devices by 2023

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SYDNEY, AUSTRALIA – The Australian IoT (Internet of Things) at home (IoT@Home) market grew 57 per cent during the past 12 months to $1.1 billion in 2018 and is forecast to reach $5.3 Billion by 2023, according to new research from Australian emerging technology analyst firm, Telsyte.

 The Telsyte Australian IoT@Home Market Study 2019, now in its seventh edition has found more than five million Australian households (more than 50 per cent of total households) have started the smart home journey with at least one IoT@Home product installed by the end of 2018.

 The increase of more than 30 per cent – from around 4 million households in 2017 – was primarily due to surging adoption of smart speakers.

 Amongst the five million IoT@Home adopters, Telsyte research finds around a quarter are considered “invested” in smart home technology, with at least five different IoT@Home products already installed in the home (e.g. cameras, smart plugs, smart lighting and smart appliances).

 This figure is set to grow even further with Telsyte predicting the average household in 2023 will have 37 devices, around half being IoT@Home devices.  At the end of 2018, the average Australian household had 17 connected devices, primarily made up of smartphones, computers, tablets and other gadgets.

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 These “invested” IoT@Home adopters are more likely to be younger families and tech enthusiasts who have a range of consumer devices, such as drones, VR headsets, and location tracking tags.

 Telsyte’s research shows rising energy costs has been driving adoption of smart energy solutions and government’s investment in renewable energy and subsidies for smart batteries are expected to boost the IoT@Home smart energy segment in the medium term.

 The smart energy segment is now worth over one-third of the total IoT@Home market by revenue.

 Smart connected appliances (e.g. whitegoods) are expected to be the longer term IoT@Home market revenue driver beyond 2020, making up around 40 per cent of the industry’s annual revenue by 2023.

 Telsyte Managing Director, Foad Fadaghi, says there is a growing demand for smarter homes.

 “Nearly a third of Australians are interested in modernising their current residence to make it smarter,” Fadaghi says.

 Among people looking to spend to make their home smarter, more than 40 per cent of their budget is set to be spent on improving energy efficiency or making the home safer.

 More devices calling for more services

 While DIY IoT@Home solutions have been gaining popularity, there are new opportunities for professional installers and services providers.

 The market is ready for professional services with Telsyte research showing 45 per cent of Australians value an installer’s advice, and one in three households will require professional assistance to setup smart devices or appliances.

 Support services will be most important for sophisticated devices such as smart intercoms and smart locks and other smart sensor-based products such as smart water taps.

 In fact, one in three Australians are interested in monthly subscription IoT@Home services such as home security monitoring and energy monitoring and optimisation services.

 Surge in smart speakers drives market growth

 Australia’s IoT@Home market continued to benefit from surging smart speaker adoption and Telsyte forecasts the smart speaker category will continue to be the most successful IoT@Home product throughout 2019 with 2.5 million (26%) Australian households using smart speakers by end of the year, up from 1.6 million (16%) in 2018.

 There is also a growing number of people interested in smart speaker applications. Some one in four IoT@Home adopters and potential adopters are interested in controlling IoT@Home and other connected devices, such as controlling lights and unlocking doors using smart speakers.

 ‘Getting everyday info’ overtook playing music as the most frequently used daily smart speaker application in 2018.

 While concerns remain around privacy and security, Telsyte’s research shows there is a growing acceptance of smart speakers having access to different applications, devices and data sources, particularly amongst entertainment-related apps and security cameras.

 Google remained the leader in the smart speaker market in 2018 with over 70 per cent of the main smart speakers sold being the Google Home series. Telsyte forecasts Google and Amazon smart “assistant” speakers will continue to be the top two sellers during 2019.

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 Homes getting ready for nbn™ and 5G connectivity

 Smart homes need speedy connectivity and Australia is entering a new era of nbn™ and 5G wireless broadband services.

 Telsyte’s latest consumer research shows nbn is the most important IoT@Home related feature when Australians move into a new home, when either renting or buying.

 Ample built-in power plugs around the house to charge more connected devices as well as fixed network connections in rooms are seen as important.

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Telsyte forecasts more IoT@Home devices such as smart security cameras that are 5G-capable will be offered as part of an IoT@Home subscription service.

 Despite concerns around increasing usage of AI, Telsyte research shows close to half of people are open to the idea of having a more automated approach, including utilising AI, for home security. For example, being alerted to trespassing or unusual activities around the home based on facial recognition.

 Smarter homes open new world of commerce

 A new paradigm for digital commerce that is coming which is set to have as much impact as eCommerce and mCommerce before it. 

 Telsyte defines this as IoT-Commerce which encapsulates purchases enabled or facilitated by smart appliances (e.g. smart fridges) and other IoT@Home products such as smart speakers. While its early days, Telsyte predicts IoT-Commerce will become mainstream within 10 years’ time.

 Telsyte’s latest digital consumer study found “convenience” is overtaking price as the number one factor for purchasing goods online instead of in-store. The natural extension of this is for sellers to look at technologies that can generate greater convenience than current eCommerce experiences and IoT@Home technology is a key enabler.

According to Telsyte’s research, close to half a million Australian households have subscribed to recurring delivery services during 2018, including services such as weekly meal delivery services or pet product delivery services, paving the way for more automated buying systems.

 “IoT-Commerce is set to provide a more seamless and hassle-free experience when shopping for everyday household items, automating the process and freeing up time for Australians,” Fadaghi says.

 However, Telsyte recognises key challenges exist with IoT-Commerce, including resistance from existing channels and supply chains, as well as technical challenges in getting fragmented systems to work together.

 Telsyte predicts by 2040, at least a quarter of appliances will have built-in sensors and partnerships to facilitate IoT-Commerce in countries like the USA, UK, Australia and New Zealand.

 By 2040, Telsyte forecasts the IoT-Commerce market could be worth more than $100 Billion in Australia, or equivalent to around 20 per cent of consumer retail trade by then.

 While there are similar privacy and data security concerns for IoT-Commerce compared to overall IoT@Home adoption, Telsyte research found saving money in the long term and the potential for free appliances in exchange for longer term service agreements (e.g. a free fridge for a multi-year minimum spend grocery provision agreement) might help the market grow.

IoT@Home segments covered:

IoT-Commerce segments covered:

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 For further information on the study or media enquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

Alvin Lee
Senior Analyst
Tel: +61 2 9235 5890
Email: alee@telsyte.com.au

 The Telsyte Australian IoT@Home Market Study 2019 is a comprehensive study which provides subscribers with:

  • Market sizing and forecasts of the Australian IoT@Home market by detailed segments including services and installation revenues

  • Insights into consumer attitudes and technology adoption trends

  • Analysis of vendor strategies and key growth segments

  • IoT@Home user profiles, including adopters, those on the verge of adopting and those not yet to be interested.

  • Analysis of the IoT@Home ecosystems

  • Analysis of retail and online channels and their importance to IoT@Home products

  • Insights into where consumers begin with IoT@Home journey and key market drivers expected to drive rapid adoption in different segments.

  • Analysis of market potential for IoT-Commerce, enabled by IoT@Home products, voice and AI

 In preparing this study, Telsyte used:

  • Telsyte’s annual Smart Home survey conducted during November and December 2018 with a representative sample of 1,025 respondents, 16 years and older.

  • Interviews conducted with executives from service providers, network operators, manufacturers, retailers, financial analysts and channel partners.

  • Financial reports released by service providers and manufacturers.

  • On-going monitoring of local and global market and vendor trends.

  • Analyst reviews of leading smartphone and wearable devices.

 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. For more information visit www.telsyte.com.au

 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.

 

Beyond disruption: Australian organisations race to digital transformation success

Telsyte has published our latest digital enterprise research study.

 

Commissioned by DXC.technology, and built on over a decade of researching the impact of emerging technologies in Australia  - the key themes covered in the study include:

 

  • How organisations are approaching digital transformation in Australia

  • How the CEO is becoming critical to digital transformation success

  • Impact of AI on jobs and the workplace

  • The growing focus on the customer in digital transformation

  • Measuring benefits of digital transformation

  • Factors affecting transformation failure

  • How 5G, IoT, cloud and customer experience technologies drive digital agendas

 

For further information, please see the following press release by DXC Technology:
https://www.dxc.technology/au/press_releases/146589-dxc_technology_study_finds_35_000_new_technology_jobs_will_be_needed_to_meet_the_growth_of_digital_transformation_in_australia


The full report can be downloaded at:
https://www.dxc.technology/au/flxwd/146560-beyond_disruption

 

For further information on the study or media enquiries please contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

 

 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. For more information visit www.telsyte.com.au

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.

Cloud climbs to new heights in Australia as market growth continues

Core applications quickly moving to the cloud, but skills challenges remain

Tuesday, April 2nd 2019

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SYDNEY, AUSTRALIA – Australia’s cloud Infrastructure-as-a-Service (IaaS) market continues to boom with organisations spending $688 million in 2018, a figure expected to reach around $1.2 billion by 2022, according to new research from emerging technology analyst firm Telsyte.

The Telsyte Australian Cloud Market Study 2019 found maturity is rapidly increasing in Australia, with 84 per cent of organisations having a strategic approach to cloud computing and one in four (24%) having mature practices that are able to move workloads from on-premises to cloud.

The strong spending is in line with Australian organisation’s intentions to increase total IT budgets, with an average increase of 6 per cent expected in 2019, up from 4.8 per cent in 2018. The main driver for IT budget growth is digital transformation, of which cloud computing is a key enabling technology.

Among organisations which have adopted cloud computing, 43 per cent plan to increase spend on cloud infrastructure as more experiment with multiple platforms.

According to Telsyte, a multi-cloud approach is dominating, with 77 per cent of all Australian organisations using more than one platform, and almost half (49%) using more than four cloud platforms. The average number of cloud platforms used by organisations reached 3.8 in 2018.

Early concerns about cloud adoption have all but disappeared with few organisations having any cloud restrictions. In 2018, 41 per cent had a ‘cloud first’ policy, and another 36 per cent place no restrictions on cloud use.

Cyber security is both a driver and a challenge for organisations when it comes to cloud, with 40 per cent ranking security as a top reason for adopting cloud-based applications. Conversely, 42 per cent rate security as a concern with cloud computing.

ERP, big data remain big opportunities for cloud applications

With IaaS being adopted rapidly, Australian enterprises are now deploying a range of applications off premises.

Australian companies see cloud as an important enabler for big data applications, with 84 per cent of large organisations using some form of cloud storage or compute for their main big data analytics program as massive amounts of data out-grows on-premise capabilities.

The uptake is extending to traditional “core” applications with almost two thirds (65%) of organisations claiming their ERP systems are fully or partially cloud-based.  Cloud deployments have been particularly important to address enterprise application challenges of poor integration (30%); lack of infrastructure (29%); and long deployment times (26%).

Skills availability challenges cloud

Australia’s adoption of cloud must be supported by skilled professionals, however there is still a gap in the market for cloud skills.

 Telsyte research found organisations are looking towards partners to manage cloud services, with 37 per cent of large organisations currently outsourcing cloud management to third parties.

 Local data centres remain important for Australian organisations with 62 per cent of IT and business leaders being more willing to try cloud services from multinational organisations if they have local data centres.

 A significant 69 per cent of Australian organisations still have restrictions in adopting off-shore public cloud services, with the majority citing internal company policies as the main limitation. Only around half of organisations interviewed believed their cloud computing practices were fully compliant to GDPR regulations.

 For further information on the study or media enquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

 The Telsyte Australian Cloud Market Study 2019 is a comprehensive study which provides subscribers with:

  • Market sizing, forecasts and market assumptions

  • Cloud trends across enterprise applications, cloud partners & outsourcing, data location and cloud policies

  • Australian organisations IT trends and strategies, including cybersecurity

  • Strategic analysis of market opportunities for cloud infrastructure and applications

In preparing this study, Telsyte used:

  •  An online survey of 447 IT decision makers across Australian organisations having greater than 20 employees, with 60 per cent of respondents coming from organisations with greater than 200 employees.

  • Reports released by service providers

  • On-going monitoring of local and global market 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. For more information visit www.telsyte.com.au

 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.

 

Video games driving Australian VR headset sales

Enterprises eye AR for customer facing apps and location services

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SYDNEY, AUSTRALIA – The Australian VR (Virtual Reality) headset market grew 40 per cent in 2017 to reach 302,000 devices sold, according to new research from emerging technology analyst firm Telsyte.

The Telsyte Australian VR & AR Market Study 2018 found that despite the growth in sales, adoption remains constrained by high device costs, the rapid pace of innovation and lack of clear market winners.

“Australian consumers and developers are taking a wait and see approach to virtual reality” Telsyte Managing Director, Foad Fadaghi says.

Telsyte forecasts that 2.2 million households will have a VR headset in use by 2021, with the main applications being in entertainment. VR headset annual revenue is expected to grow to more than $200 million by 2020, up from $79 million in 2017.

The market leader in VR headsets was Sony PlayStation, which benefited from selling VR as an accessory for the PlayStation 4, and its ability to attract leading games publishers. Sony PlayStation has announced over 50 new VR games titles for 2018.

As awareness has advanced, health concerns surrounding VR has plummeted, with only 5 per cent of survey respondents concerned about negative health implications of VR, down from 36 per cent in 2016.

 Augmented reality gets smartphone boost

 Telsyte believes with more use cases and higher levels of accessibility, augmented realty (AR) – or the overlaying of computer-generated digital images over a camera feed of the real world on devices such as smartphones, tablets, and headsets  is expected to gain broader adoption than VR. The popular AR apps such as Pokémon GO and Snapchat photo filers have helped rocket AR into the mainstream, with 1 in 3 of Australians saying they have tried AR applications.

Telsyte research shows that 67 per cent of iPhones used in Australia are ARKit compatible (Apple’s AR development platform), and 23 per cent of Android phones are AR core compatible (Google’s AR development platform).

While most AR applications are currently being developed for smartphones and tablets, Telsyte forecasts that consumer AR headsets and smart glasses will be commercially available towards the end of 2020, some combining AR and VR functionality.

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Training and design ripe for Enterprise VR

Around one third of organisations interviewed by Telsyte indicated they are either investigating or implementing VR applications. Driving this intention was applications in education & training (40%) and product design & engineering (38%). 

Interest in VR applications for education and training is most prevalent in the professional, scientific and technical services organisations.

Lack of knowledge in VR and lack of skills in app development are key barriers to enterprise adoption, which is further complicated by the numerous VR platforms currently battling for dominance.

 Enterprise AR set to boom

Enterprise interest in AR is higher than VR with 46 percent of organisations currently investigating or implementing AR applications. Customer facing applications (40%), location-based services (38%) and project management (37%) are the main applications being developed.

Most organisations building AR apps are developing for the iPhone (74%), followed by iPad (64%) and Android smartphones (64%).

Like VR, lack of skills and technology maturity are the key barriers for AR with almost 1 in 3 organisations identifying both as barriers.

“With a large established installed base of AR capable smartphones and tablets, AR is becoming the go to option for businesses that are experimenting with immersive technologies” Fadaghi says.

For further information on the report or media enquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

Telsyte’s Australian VR & AR Market Study 2018 is the fourth edition in a comprehensive study which provides subscribers:

  • Market sizing and forecasts of the Australian virtual reality market

  • Australians attitudes to VR & AR software and hardware

  • Enterprise VR & AR adoption and use cases in Australian organisations

  • Analysis of current offerings in the market, and strategic issues for developers

  • End-user trends and intentions.

In preparing this study, Telsyte used:

  • Interviews conducted with executives from VR/AR vendors, retailers, software developers, game publishers and channel partners.

  • An online survey of a representative sample of Australians 16+ years of age conducted with 1,162 respondents in November 2017.

  • An online survey of a representative sample of technology decision makers across Australian organisations with greater than 20 employees, around half in companies with greater than 200 employees

  • On-going monitoring of local and global market and vendor trends.

  • Financial reports released by hardware and software vendors .

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. For more information visit www.telsyte.com.au

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.