IT and Internet Are the Next Big Things for Australia’s Economy
The assumption that Australia has the potential to become a major force on the world’s IT services market has been around for years now. Recently, riding on the tails of the newly released update to the country’s digital economy, a comprehensive forecast and analysis study in the field has confirmed that there is plenty of room for growth in Australia, when it comes to IT and tech. The market has been expanding to great new heights in terms of accessibility to mobile broadband Internet access, 4G services, smartphone and tablets. The market still needs to address the demand for cloud-based computing, the storage of big data, and social media, but, all in all, those looking to make it as an IT startup, or simply seeking an improved experience in this respect, are likely to see positive change in this field, over the coming five years.
The study, released by an analysis service provider in mid-June expects the overall services market in Australia to grow from its current total worth of $15 billion (recorded in 2012) to $17.6 billion in 2017. The increase rate has been estimated at 3.2 per year over the five year span until 2017. However, the study also points to a clear case of “not all services were created equal”. As a matter of fact, there are significant gaps to be taken into consideration, when comparing the way traditional service providers are expected to perform with the way IT service providers will likely fend for themselves. The authors of the study encourage companies to first change their services providers and move away from a contract model that requires the use of massive resources, toward a more utility-based approach. In simpler terms, this entails a move to the cloud. Another study, which analyzed the responses of one hundred IT managed services companies says that 40 per cent of respondents will at least partly make the move toward cloud computing over the coming one or two years.
Since these changes have already been anticipated, IT service providers also need to make the switch themselves. The key lesson for them is to adapt to the needs of the market, by lowering costs and by responding to market needs. Lower costs can be achieved through lower overheads, and that’s where innovative solutions like virtual offices step in. Working remotely and flexibly, as well as enjoying mobility, are two prerequisites in such a strategized process. However, IT service providers need first and foremost adapt their range of services offered to emulate those of strictly cloud based providers.
One topical example of a shift in strategy that responds to current needs comes from the field of telecommunications. As 4G becomes the new norm in terms of mobile Internet access, Australia’s three main tel-co providers are updating their offer in order to better adjust to what the market needs. This, of course, entails massive investments into upgraded networks – much like IT service providers would need to massively invest into infrastructure, in order to provide services better suited for today’s markets.
The top carrier network in the country already had 1.5 million 4G-ready devices connected to it and is now looking to expand its reach to 66 per cent of the population in terms of coverage. One of its two main competitors has upped the ante on investments, by promising to roll out an investment into 4G services worth $2 billion, over the course of the coming two years. Finally, Australia’s third carrier, which is currently facing a major client move away, has also announced it would invest $1 billion during the next two years toward upgrading its 4G capabilities.
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Category: Business
