Wednesday, 25 May 2016 00:07

Aussies fuel boom in use of Internet-connected devices: Telsyte

Aussies fuel boom in use of Internet-connected devices: Telsyte Image courtesy of Stuart Miles,

By 2019 the average Australian household will have around 24 Internet-connected devices — up from nine devices in 2015 — and we will spend $3.2 billion on connected devices and services by the end of the decade, according to newly published research from analyst firm Telsyte.

Telsyte says the almost 11-fold growth in Internet-connected devices and services over the next four years — detailed in the fourth edition of its infographic style report book, Digital Nation — shows that Australians are increasingly comfortable using and adapting to new technologies.

According to Telsyte managing director, Foad Fadaghi, “staying connected is now a national pastime – Australians are clearly more dependent on the internet for entertainment and shopping than ever before”.

And, by 2019, Telsyte says its research shows nearly three-quarters (73%) of the population will believe faster broadband is important for Australia’s future and, as a result of being more connected, 70% of Aussies will be happy doing online banking.

According to Telsyte, the e-commerce market in Australia is growing strongly, with digital commerce — including digital goods and subscriptions — reaching nearly $30 billion in 2015 and sales of digital goods and services is up by more than 20% year-on-year, led by the “spike in uptake of Internet video streaming services and the shift to digital gaming”.

Telsyte also says other categories of physical goods purchased online continue to grow, but that growth is curtailed by the falling Australian dollar. In fact, the research shows that physical goods e-commerce grew by 4% from 2014 to 2015, compared to 7% in the previous year.

With more Australians accessing a wider range of online services than ever before, government agencies at all levels are developing citizen portals to facilitate interaction, according to Telsyte.

The research indicates most (80%) of people believe all government services should be available online, and says that the federal government’s MyGov portal has been well received, with more than half (55%) having registered to use the portal, of whom 75% agree that it provides useful services.

But, according to Telsyte, government agencies still have some work to do when it comes to providing online services, with one in four Australians still believing Australia is not yet a global leader in e-government.

“With so many of us comfortable using e-government services, the opportunity is there for the range of services available to citizens to expand. Apps in areas such as e-health, business services and taxation can be used to streamline interactions with all levels of government,” Fadaghi says.

Telsyte also maintains that Australians are in the middle of a “work-life balance revolution” and that the workplace is transforming to be more accommodating and productive for an increasingly technology-enabled workforce.

And, Telsyte senior analyst Rodney Gedda says, in addition to the use of personal device technology in the workplace, traditional IT strategies are changing rapidly to deal with line of business spending and an influx of cloud-based services.

“More than half of Australian CIOs believe line of business IT spending will exceed central IT spending by 2020 and more than 80% of enterprises will be using some cloud infrastructure service by that time. Such trends are forcing a rethink of traditional IT management practices.”

Telsyte also says its research shows that cloud computing for business continues to grow strongly, revealing how the hybrid architecture will become the “predominant form of infrastructure management".

“Being able to deploy workloads on public or private clouds for the best business outcome is the foundation of a modern IT service capability,” Gedda says, adding, “important factors like security, integration and TCO do not go away with moving on-premise systems and applications to the cloud.”

According to Telsyte, the digital transformation of Australia’s businesses is now reaching the core of how they operate including enterprise resource planning (ERP) systems, and a big challenge for those businesses is that ERP feature use is languishing and the “top two factors for ERP success are easy to use interfaces and flexibility of the ERP system”.

The analyst firm says it believes traditional ERP suites must evolve to compete with the range of cloud-based SaaS applications offering modern UIs and flexible usage models.

“In recent years, the emergence of Platform-as-a-Service (PaaS) has provided a hosted development and testing environment for new applications. PaaS cloud services also offer developers a wide range of integration components for popular services from content management and file storage to CRM and accounting.

“Digital disruption is resulting in an increase in the adoption of PaaS to develop and deploy custom applications in the cloud. More than half of Australian organisations are already using or investigating PaaS to deploy custom software as more seek fit-for-purpose applications,” Telsyte concludes.


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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).



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