Budgets are increasing, with 83% of Australian chief information officers planning to invest more on big data in 2017, including hardware, software and services. The 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.
Telsyte research shows more than half of Australian CIOs predicted a five-fold or more 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.
Big data and associated analytics are now in the same league as CRM and marketing automation for a share of software budget, indicating its strategic relevance across a growing number of data sources, not just traditional databases.
About 30% of enterprises are using or planning to use big data for predictive analytics, indicating a strong requirement for these use cases. Big data analytics is now in the top five of enterprises applications managed by third-party service providers, indicating a lack of in-house capability to process large data sets.
Around a third of CIOs are looking to use big data analytics for sales and marketing applications, putting it in the top three of line of business use cases. However, uptake is still lagging with only 15% of marketing departments having implemented big data analytics.
Barriers to adoption
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 were found to be holding back broader adoption in Australia.
It shows big data processing is already the number one use-case for high-performance computing, and analytics and reporting is in the top five.
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
Big data managed services high on agenda in Australia
“The local big data services space remains ripe for consolidation with many service providers growing quickly in the past 12 months,” Telsyte managing director Foad Fadaghi says.
The Australian market for big data and analytics support partners is growing strongly with global players like SAS, 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.
Telsyte study methodology
- 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% of respondents coming from organisations with greater than 200 employees.
- Interviews were 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.