Trends

The Latest

12 August 2021: TechnologyOne released a significant report based on a six-month long study into the economics of Cloud computing and SaaS among Australian organisations.  

The study, which was independently conducted by IBRS and Insight Economics, explored the tangible costs associated with migrating to the Cloud, with both IaaS and SaaS journeys investigated. An economic analysis of the data collected through 67 in-depth case studies with CIOs and C-suite executives, additional interviews, and over 400 respondents, revealed a $224bn economic dividend for the Australian economy, prompting TechnologyOne to term the report "too big to ignore".

Why it’s Important.

While the report is aimed at policymakers and strategies looking at the macro-economic impact of technology, it also details the costs and benefits of Cloud adoption by industry sectors, providing IT strategists with realistic benchmarks. 

When developing the methodology for the report, IBRS and Insight Economics took a ‘no free lunches’ approach to data collection. Unlike other reports on the benefits of Cloud migration, the study took into account the costs of, and time needed for transition, including training, change management, skills (and skill shortages) and the fact that many organisations will need to retain on-premise environments to support legacy and home-grown applications for years to come. In addition, only productivity benefits that had been measured were included in the analysis. 

As a result of the evidence-only approach to the study, the ‘direct returns’ on Cloud migration detailed in the report are both far lower and far more realistic than those found in studies conducted in the USA and Europe.

The report may be accessed here: https://toobigtoignore.com.au/

Who’s impacted

  • CEO, COO, CFO, CIO
  • Cloud migration teams

What’s Next?

The conservative approach to the study, the rich data collected, means that organisations still struggling to make a business case for SaaS have practical benchmarks and economic modelling to call upon.

Related IBRS Advisory

  1. The economic impact of software as a service in Australia
  2. Get board agreement to the Cloud strategy

The Latest

3 August 2021: Salesforce has announced an agreement to acquire Servicetrace, a robotics process automation vendor. This marks another milestone in Salesforce’s strategy to deliver enterprise SaaS solutions surrounded by a mesh of low-code process automation and integration. It is also evidence of how the previously disparate markets for low-code application development tools, RPA, process mapping, and integration tools are consolidating into a service mesh that goes beyond process digitisation. In this case, when coupled with enterprise SaaS, the sum is greater than the parts.

Why it’s Important.

In the IBRS trends report for 2021-2026, a fourth-wave of ICT was detailed. The crest of this wave is the rapid consolidation of low-code, process mapping, RPA and (soon) rules engines, and AI.  

However, IBRS case studies with scores of executives involved in Cloud migration strategies, suggest that many organisations ICT groups are resistant to the coming wave. This is mainly due to sunk costs in on-premises software and infrastructure, the difficulty in justifying costs of integrating disparate systems and, at least to some degree, concerns over losing control or lacking skills to manage core infrastructure.

The cost of integration coupled with the need for digitising manual processes is currently a real economic barrier. Financial modelling suggests that the labour and costs of integrating disparate (on-premises and Cloud) solutions can destroy the return on investments for Cloud migration in the near to mid-term (1-5 years). This is especially problematic for industries with a complex mix of specialist enterprise solutions, such as healthcare and utilities. 

Who’s impacted

  • CIO
  • Development team leads
  • Business analysts

What’s Next?

Organisations that have previously rejected Cloud migrations due to not being able to make the financials stack up should consider re-evaluating the decision in 2022, taking into account the potential of buying into a mesh ecosystem that unifies low-code, workflow, process mapping, RPA rules engines and possibly AI services and that supports SaaS enterprise solutions ‘out of the box’.

Enterprise architects should also consider a shift towards a fourth-wave of ICT will impact their organisation’s ICT architecture and, if needed, begin planning to evolve to a new environment.

Related IBRS Advisory

  1. Hammering Low-Code into Place Takes Time
  2. Mulesoft Believes it Can Accelerate Digital Customer Experiences on SAP
  3. Salesforce introduces Hyperforce
  4. Salesforce Einstein automate

The Latest

16 August 2021: Zoom is best known for its video conferencing solution, which set new standards for ease of use and quick adoption, which in turn saw its usage skyrocket during the first months of COVID-19 lockdowns. The firm’s brand is now so ingrained that staff often refer to video conferencing as ‘zoom calls’ and the public use the terms ‘zooming’ and ‘zoom me’, even when Zoom may not be technology in use. Unfortunately for Zoom, its strong brand recognition with video calls often obscured the breadth of its unified communications (UC) ecosystem.

Zoom is attempting to reposition its brand as an end-to-end UC platform. The topics for its planned Zoomtopia summit, scheduled for the 14th of September, are clear indicators of where Zoom will focus its efforts in the coming year: 

  • Public sector
  • Education
  • Healthcare
  • Financial services

IBRS recent interviews as part of the Cloud economic study found these four sectors have all been particularly impacted by COVID-19 in terms of service delivery volume and increasing expectations on multichannel (if not omnichannel) experiences. So Zoom’s targeting makes sense. 

Why it’s Important.

The requirements for UC are shifting from internal standardisation (cost optimisation, ensuring staff can communicate efficiently and switch between communications modes) to external flexibility (delivering services using end-points that the public have on hand). It is for this reason that both Microsoft Teams and Zoom are finding their way into call centre strategies. It is not just that these video communications technologies fit within a larger communications ecosystem, but that the majority of the public are familiar with the services and likely have clients already installed on their devices. The mature wave of UC, which IBRS introduced 14 years ago, is moving from the trailblazers into the mainstream.

Who’s impacted

  • User experience / customer journey teams
  • Development team leads
  • Customer service teams
  • Call centre teams

What’s Next?

There two key triggers for replatforming an organisation’s UC environment, or at least introducing a new UC platform:

  • An overhaul of call centres, possibly in conjunction with CRM modernisation.
  • Replacement of legacy PBX or VoiP solution

 

Related IBRS Advisory

  1. Unified Communications: the future is full of MUC
  2. Unified Communications: Justifications and Predictions
  3. Special Report: Using Lessons from Activity-Based Working to Redefine the Post-Pandemic Workplace

The Latest

2 July 2021: Amazon released a video summary and report on its sustainability targets and performance. The key take outs are that Amazon is the largest corporate purchaser of renewable energy, with a shift of 42% from non-renewable within one year. The underlying message here is sustainability is no longer a political issue for the corporate sector, but a fiscal imperative.  

Why it’s Important

As outlined in previous IBRS research, all of the hyperscale cloud vendors - Google, AWS, Microsoft, Oracle and Alibaba - have well-documented strategies to reduce their reliance on carbon-based fuel sources. All position sustainability as a competitive advantage, not just against each other, but against on-premises data centres. 

It is likely that cloud vendors will be positioning their sustainability credentials in both business and general news channels, looking to position their brand as a leader on climate action. From a cynical view, this messaging will play well with the existing news cycle of the impact of climate change, from the disastrous bushfires to killer heatwaves in North America, to unseasonable storms and record-setting weather events. From a more optimistic perspective, these vendors will drive genuine solutions to reduce the carbon footprint associated with providing computing service.

Therefore, as cloud vendors set or meet zero carbon energy targets, the issue of sustainable ICT is set to re-emerge as a priority for CIOs and data centre architects.  

IBRS and BIAP (via the IT Leaders Summits) have tracked CIOs interest in the topic of green IT. An IBRS study in 2008 had sustainable ICT being rated as ‘very important’ for 25% of CIOs and ‘somewhat important’ for 59% of CIOs. Since then, interest in sustainable computing has plummeted year-on-year. The IBRS / BIAP data for 2016 had 6% of CIOs rating sustainable ICT as a priority. By 2020, less than 0.5% of CIOs rated sustainable ICT as a priority.

IBRS expects this trend to reverse sharply in 2024-2025 as the leading cloud vendors continue to demonstrate both environmental and financial benefits associated with renewable energy.

Who’s impacted

  • CIO
  • CFO
  • Data centre leads
  • Infrastructure architects

What’s Next?

By 2025 the leading cloud vendors will leverage their position in renewable energy consumption as a selling point for policy-makers to mandate cloud computing and place unattainable goals for architects of on-premises data centres.

Rather than waiting, CIOs should review previous strategies for sustainable ICT, with the expectation that these will need to be updated and reinstated within the next 3-5 years.

Related IBRS Advisory

  1. The Status of Green IT in Australian and New Zealand (2008)
  2. Building your Green IT strategy
  3. Think green IT: Think saving money
  4. Forget Green; think sustainable computing in 2009

The Latest

28 March 2021: MaxContact, vendor of a Cloud-based call-centre solution, announced it is supporting integration of Teams clients. Similar vendors of call centre solutions have announced or are planning similar integration with Teams and/or Zoom. In effect, the most common video communications clients are becoming alternatives to voice calls, complete with all the management and metrics required by call centres. 

Why it’s Important

The pandemic has forced working from home, which has in turn positioned video calling as a common way to communicate. There is an expectation that video calling, be it on mobile devices, desktop computers or built into televisions, will become increasingly normalised in the coming decade. Clearly call centres will need to cater for clients who wish to place calls into the call centre using video calls.

But there is a difference between voice calls and video that few people are considering (beyond the obvious media).  That is, timing of video calls is generally negotiated via another media: instant messaging, calendaring, or meeting invites. In contrast, the timing for voice calls are far less mediated, especially when engaging with call centres for service, support or sales activities.

For reactive support and services, video calls between a call centre and a client will most likely be a negotiated engagement, either instigated via an email or web-based chat agent. Cold-calling and outward bound video calls is unlikely to be effective.

The above has significant implications for client service and support processes and call centre operations.

Who’s impacted

  • CIO
  • Development team leads
  • Business analysts

What’s Next?

The adoption of video calls by the masses is here to stay. Video calling is not a fad, but it will take time to mature. 

Having video support and services available as part of the call centre mix is likely to be an advantage, but only if its use makes sense in the context of the tasks and clients involved.  

Organisations should begin brainstorming the potential usage of video calls for serving. However, adding video calling to the call centre is less of a priority than consolidating a multi-channel strategy and, over time, an omnichannel strategy.  

Related IBRS Advisory

  1. Better Practice Special Report: Microsoft Teams Governance
  2. Evolve your multichannels before you try to omnichannel
  3. VENDORiQ: CommsChoice becomes Australia's first vendor of Contact Centre for Microsoft Teams Direct Routing

The Latest

23 March 2021: ServiceNow has signed an agreement to purchase robotic process automation vendor, Intellibot. The deal will see Indian-based Intellibot, which was founded in 2015, embedded into the ServiceNow platform. 

Why it’s Important

RPA is rapidly becoming merged within the low-code everything ecosystem. ServiceNow’s planned investment in buying into RPA is not surprising: other low-code vendors, such as Nintex, have already secured their RPA solutions through acquisition. Buyers of standard-alone RPA solutions can expect more acquisitions, followed by rapid market consolidation in 3-5 years time. 

Who’s Impacted

  • CIO
  • Development team leads
  • Business analysts

What’s Next?

Expect RPA to play an increasing role in areas such as customer account creation and management, customer verification, employee on-boarding and off-boarding, data extraction and migration, and claims and invoice processing, among others.

Related IBRS Advisory

  1. Exploring Robotic Process Automation
  2. How Can AI Reimagine Your Business Processes?
  3. Cloud Low-code Vendor Webflow Secures US$140 Million
  4. Aussie Vendor Radar: Nintex Joins the Mainstream Business Process Automation Vendor Landscape
  5. SNAPSHOT: A Robotic Process Automation Infographic

The Latest

11 March 2021: Talend, a big data / data integration solutions vendor, has signed an MOU to be acquired by private equity giant Thomas Bravo for US$2.4 billion, representing a nearly 30% premium on its current share price. 

Why it’s Important

Talend has been aggressive with the development of its solutions in the last few years, in particular in the area of managing data quality. During one-on-one briefings with IBRS, the company has demonstrated considerable flexibility in its roadmap and the willingness, and agility, to take cues of the emerging needs of clients.

Conventional wisdom is that once tech firms get subsumed by private equity, innovation declines as business drive turns to ‘rent seeking’ behaviour. This is especially true for funds that have a portfolio of well-established (legacy) technologies. A review of Thomas Bravo’s current and prior investments places Talend in a fund that previously held the likes of Attachmate and Compuware. Attachmate (now owned by Micro Focus) was seen to be aggressive with audits during the period it was owned by Thomas Bravo. On the surface, this could be cause for concern about the future direction of Talend.  

However, there are significant differences. Talend has a growing user base, is positioned in a market segment that is still evolving and has at least a decade of product innovation to come.  

Who’s impacted

  • CIO
  • Business intelligence / big data teams
  • Data management leads
  • Procurement 

What’s Next?

Over the next half-decade, an acquisition of Talend by Thomas Bravo is likely to deliver a continued commitment to market-led innovation. There is enough head-room for the fifteen-year old Talend to continue deploying new capabilities at pace that keeps clients happily buying more services.  

However, as the market for big data management solutions matures - especially shared data catalogues - pressure may start to mount for Talend to refocus on extracting more revenue from clients with proportionally less investment in development. Yes, that is a worst-case scenario, and it is not unique to Talend nor its deal with Thomas Bravo.  

Even so, organisations looking to invest in big data management solutions need to be viewing their investment futures over a decade. Such solutions quickly become fundamental platforms for the business and will be difficult (and expensive) to replace as they become increasingly embedded. Keep the long-term scenario in mind. 

Related IBRS Advisory

  1. Power BI is driving data democratisation: Prepare now
  2. Why investing in data governance makes good business sense
  3. Key lessons from the executive roundtable on data, analytics and business value
  4. Machine learning will displace “extract, transform and load” in business intelligence and data integration
  5. IBRSiQ: Can IBRS provide input into suitable reporting systems using primarily in-system data, but not excluding third party?

The Latest

23 February 2021: The appetite for crowdfunding of tech startups looks to remain strong, with the fledgling accounting software vendor Thrive securing AU$3 million through the Birchal service.  

Why it’s Important

There are two lessons to take from this announcement. 

First, commercial crowdfunding is a growth area that will favour niche tech start-ups. As more success stories emerge, this has the potential to re-invigorate the Australian startup community, which has been lagging. 

Second, it highlights the likely capabilities to be introduced in SaaS-based financial solutions: namely AI-powered automation and machine-learning decision support.

Who’s impacted

  • CIO
  • CFOs
  • Individual investors

What’s Next?

There is the potential for larger organisations to set aside funds to invest in startups. CIOs and CFOs may wish to watch the crowdfunding space that may provide relevant solutions to their needs, or secure services that may complement or even compete with their organisation. While IBRS acknowledges this strategy will not be suitable for the majority of organisations it works with, there is the possibility this will become more common over the next decade, especially for startups in security, Cloud management and cost control, AI-powered automation and machine learning-based decision support systems.

While Thrive is unlikely to be of interest to CIOs, being targeting squarely at SMEs and sole traders, the vendor’s goals leverage AI to automate much of the account process and provide recommendations, highlighting where development dollars will be going for many SaaS-based accounting solutions.

Related IBRS Advisory

  1. CIOs seek ready-made over DIY AI solutions
  2. How can AI reimagine your business processes?
  3. Salesforce Einstein automate
  4. The evolution of SaaS offerings for legacy systems

Australian businesses expecting the hassles of the COVID-19 pandemic to vanish in 2021 are in for a rude shock, according to business analyst firm IBRS, which as also released a new report on the future of the IT space. The firm's 'Future of Work' expert, and IBRS advisor, Dr. Joseph Sweeney said improvements in IT departments were required because customer organisations will remain threatened by sporadic coronavirus incidents for some time yet.

The IBRS report, titled Trends for 2021-2026: No new normal and preparing for the fourth-wave of ICT, outlines misconceptions businesses have regarding the timeline of the pandemic and that a new, fourth-wave of ICT architecture is emerging in response to the challenges that will linger after the vaccine rollout.

Full story.

The Latest

In late January, Google presented a detailed report entitled “Operating the cleanest cloud in the industry” to analysts. The private briefing detailed Google’s current status as a ‘net zero-carbon emitter’ (meaning it offsets any carbon emissions from its current operations with other programs). It also outlined its plans to be running entirely on carbon-free energy by 2030. 

Why it’s Important

All of the hyperscale Cloud vendors - Google, AWS, Microsoft, Oracle and Alibaba - have well-documented strategies to reduce their reliance on carbon-based fuel sources. Their strategies are all similar and simple: reduce energy consumption (with accompanying higher computing density) and development of renewable energy sources as part of data centre planning. Their efforts in this area are not just for environmental reasons, there are significant cost benefits in the immediate term to being free of fossil energy supply chains. All also see competitive advantages, not just against each other, but against on-premises data centres.

As these Cloud vendors announce not only net zero-carbon emission targets as being met, but zero carbon energy targets, the issue of sustainable ICT will once again start to emerge as a serial consideration for CIOs and data centre architects.  

IBRS and BIAP (via the IT Leaders Summits) have tracked CIOs interests in the topic of green IT. An IBRS study in 2008 had sustainable ICT being rated as “very important” for 25% of CIOs and “somewhat important” for 59% of CIOs. Since then, interest in sustainable computing has plummeted year-on-year. The IBRS / BIAP data for 2016 had 6% of CIOs rating sustainable ICT as a priority. By 2020, less than 0.5% of CIOs rated sustainable ICT as a priority.

With the growing call for action on climate change and the economic advantages the hyperscale Cloud vendors will have by moving to carbon-free energy sources, the pressure to provide sustainable ICT metrics will re-emerge.

Who’s impacted

  • CIO
  • CFO
  • Data centre leads
  • Infrastructure architects

What’s Next?

CIOs and infrastructure leads for organisations running on-premises services / data centres should expect a swing back to discussions of sustainability. However, unlike the 2000’s, the benchmarks for sustainability will be set by the hyperscale Cloud providers. By 2025, all Cloud vendors will start using their leadership in sustainable ICT as a selling point for policy-makers to mandate Cloud computing, or possibly even place unattainable goals for architects of on-premises data centres.

Rather than waiting, CIOs should review previous strategies for sustainable ICT, with the expectation that these will need to be updated and reinstated within the next 3-5 years.

Related IBRS Advisory

  1. The Status of Green IT in Australian and New Zealand (2008)
  2. Building your Green IT strategy
  3. Think green IT: Think saving money
  4. Forget Green; think sustainable computing in 2009

The Latest

2 Dec 2020: Salesforce Signs Definitive Agreement to Acquire Slack. The forthcoming merger of Salesforce and Slack provides an avenue for a new operating system of how e-commerce organisations and companies grow and succeed in the digital space. The merger is anticipated to close in the second quarter of Salesforce’s fiscal year 2022. 

Why it’s Important

Salesforce has struggled to shore up offerings in the collaborative side of the business, which will evolve to be an important part of modern CRMs and ERPs, along with low code dev and integration for process automation and business intelligence tools for analytics. The planning acquisition of Slack rounds out Salesforce’s ‘magic four’ components of a modern digital workplace. 

The Slack acquisition aims at heading off increasingly strong competition from Microsoft’s Dynamics, the Power Platform, Power BI, and Teams.

Who’s Impacted

  • CIOs
  • CFOs
  • COOs

What’s Next?

Consider your future digital workplace architecture based on these five high-level platforms: 

  • A platform consisting of central systems of record (e.g., CRM, ERP, etc.) in the Cloud or Cloud-like environments
  • An integration platform that surrounds the mentioned platforms 
  • A one (or likely two) low-code platform(s) 
  • A platform that provides the needed collaboration tools  
  • A federated information management platform 

Though these five platforms need not all come from the same vendor, nor even be made up of a single vendor’s solutions, Microsoft, Salesforce, and little-known Zoho are all vying for the entire set. The competition for the overall ‘Enterprise Digital DNA’ will heat up significantly through to 2025.  

IBRS expects Salesforce and possibly Microsoft to make new investments in information management platforms from 2021 to 2022. There will be rapid expansion, followed by feverish consolidation of the low code platform market.

Related IBRS Advisory

Conducted by Australia’s Intelligent Business Research Services (IBRS) and commissioned by TechnologyOne, the survey of 261 business leaders in ANZ has shown that business functions are having more sway about technology decisions and are increasingly opting for Cloud-based applications.

But it is not always a case of “shadow IT” in the traditional sense where a business unit goes behind the technology department’s back to buy a product or service.

Instead, it is “enterprise shadow IT” selected with the blessings of IT, said Joe Sweeney, principal analyst at IBRS, adding that in some organisations, CIOs have transformed and are more supportive and consultative.

Four technology forces will shape the business strategy in 2016, writes IBRS' Dr Joe Sweeney

In the view of IBRS, four technology forces will shape business strategy in 2016:

  • Mobility, the Post PC Era, and Future Workplace Innovation
  • As-a-Service
  • Security Leadership
  • Data Driven Business