Big Data budgets now rival CRM software

SYDNEY, AUSTRALIA – Australian enterprises are boosting their big data analytics capability by investing more in tools and services to transform business processes and create new products and services, according to new research from emerging technology analyst firm Telsyte.

Now in its third edition, the Telsyte Australian Big Data & Analytics Market Study 2017 reveals the demand for high volume data processing and real-time intelligence is growing strongly as organisations struggle to keep up with an explosion of data.

Telsyte’s maturity model which classifies the market into the maturity levels of static, active, tactical, strategic, dynamic and optimised, found that most (63%) enterprises are at a low maturity level. However, the rate of organisations with “strategic” to “optimised” Big Data maturity has risen sharply during the past two years.

Budgets are increasing with 83 per cent of Australian CIOs planning to invest more on big data in 2017, including hardware, software and services.

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.

Around a third of CIOs are looking to use big data analytics for sales and marketing applications, making it in the top three of line of business use cases. However, uptake is still lagging with only 15 per cent of marketing departments having implemented big data analytics.

Big data analytics now firmly on the software agenda

Big data and associated analytics is now in the same league as CRM and marketing automation for share of software budget, indicating its strategic relevance across a growing number of data sources, not just traditional databases.

Some 30 per cent of enterprises are using or planning to use big data for predictive analytics, indicating a strong requirement for these use cases.

Furthermore, big data analytics is now in top five of enterprises applications managed by third-party service providers indicating a lack of in-house capability to process large data sets.

Telsyte research shows more than half of Australian CIOs predict a five or more fold 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.

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.

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 are holding back broader adoption in Australia.

Telsyte research shows big data processing is already the number one use-case for high-performance computing and analytics and reporting is in the top five.

Big data managed services high on agenda in Australia

The Australian market for big data and analytics support partners is growing strong with global players like 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 in the space.

“The local big data services space remains ripe for consolidation with a number of service providers growing quickly in the past 12 months,” Telsyte Managing Director, Foad Fadaghi, says.

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

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

Rodney Gedda
Senior Analyst
+61 2 9235 5891
Twitter: @rodneygedda
Email: rgedda@telsyte.com.au

Telsyte’s big data and analytics research program provides leading insights into the technologies and services that are re-defining how Australian organisations, including the public sector, deploy and manage big data infrastructure and applications.

Telsyte’s Australian Big Data and Analytics Study 2017 is a comprehensive 98 page report and advisory service offering subscribers:

Impact of Big Data on IT priorities and spending of Australian businesses
Big data adoption and maturity levels
Drivers and inhibitors of Big Data adoption
Management of Big Data
Big Data adoption and insights across industry sectors including:
- Retail
- Healthcare
- Banking & finance
- Insurance
- ICT
- Government
Impact of Big Data adoption
Vendor profiles SWOT analysis, including: SAS, Oracle, Cloudera etc.

In preparing this study, Telsyte used:

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 per cent of respondents coming from organisations with greater than 200 employees.
Interviews 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.

About Telsyte

Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Telsyte is an independent business unit of DXC Technology .

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.

Touchscreen desktop computers set to enter the Australian market

SYDNEY, AUSTRALIA – Sales of tablet devices continued to rebound in the second half of 2016 with 1.64 million units sold, according to the Telsyte Australian Tablet Market Study 2017.

The modest half-on-half increase of 2 per cent was facilitated by a boom in convertible ‘2-in-1’ Windows tablet sales which accounted for 27 per cent of all devices sold. Windows has almost overtaken Android (29%) but remains behind the market leader Apple with 44 per cent share.

Telsyte estimates that Australian sales of Windows tablets grew around 60 per cent half-on-half (2H 2016 vs 2H 2015) while during the same period Android tablet and iPad sales declined 13 per cent, and 9 per cent respectively. Convertible ‘2-in-1’s led the charge with the category now making up 30 per cent of sales, up from 15 per cent in 2H 2015 [1].

The latest findings show that Australians are moving significantly away from sub-premium (or low cost) tablets. Telsyte estimates less than 10 per cent of tablets sold in 2H 2016 fall into this category. According to Telsyte’s Australian Digital Consumer Study 2017, around 40 per cent of Australians are willing to pay more for ‘top quality electronics’ as digital devices become central to the consumer lifestyle.

Australian tablet users on average spend around 2 hours per day on their tablets, with primary usage still being at home (over 80%). The time spent on 2-in-1 tablets is more than 3 hours per day and over 30 per cent use them outside of home.

“Tablets are no longer just about media consumption, touchscreen devices are revolutionising the creative experience,” Telsyte Managing Director, Foad Fadaghi, says.

Tablets move beyond the handheld

Telsyte expects the introduction of larger format, desktop touch computers, such as Microsoft’s Surface Studio to boost an otherwise sluggish PC market which has struggled to give users a reason to upgrade. Telsyte estimates that the average replacement cycle for PCs in Australia has now grown to 4.7 years.

Telsyte believes Microsoft and its OEM partners will cater for different segments of this bourgeoning market developing both tabletop and desktop touch interfaces using Windows 10 in various form factors.

Telsyte estimates that by 2021, at least 10 per cent of desktop PCs sold will have touch screen interfaces, with more pervasiveness expected as screen price come down. Currently large format touch screens are more closely aligned to creative professionals, businesses and high end household budgets than the mainstream buyer.

Around 80 per cent of the ICT decision makers in Australia and New Zealand surveyed by Telsyte indicate that they are already buying or interested in purchasing larger format touch screen computers for their organisation.

Tablets accessories boom despite device sales remaining flat

Despite a slowdown in tablet unit sales from the boom years of 2012 to 2013, the market for tablet-related accessories continues to be a profitable category for leading retailers. Telsyte research shows that 71 per cent of tablet users have at some stage purchased some form of accessory for their device, with the top add-ons in 2016 being cases and keyboard-type covers. In addition, sales of pen input or stylus devices featured prominently for owners of 2-in-1 devices.

For further information on the study or media inquiries contact:

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

About Telsyte’s Australian Tablet Market Study 2017

Tablet definition: A computer device consisting of a 7 inch or larger touch screen that can be used in a slate format (not requiring keyboard or mouse). Telsyte’s definitions includes 2-in-1 devices with detachable or foldable keyboard, and tabletop, or reclinable desktop screens that provide a tablet form factor experience.

2-in-1 definition: Primarily refer to laptops that have a touch screen and detachable keyboards or foldable form factor to provide a pure tablet-like experience. Tablets that are known for their versatility and mimic laptop-like experience with keyboards or type covers are also considered as 2-in-1s. E.g. Microsoft Surface tablets, iPad Pro, Samsung Galaxy TabPro S, Google Pixel C, Sony Xperia Z4 Tablet, Toshiba Portege Z20t, or Lenovo Yoga 3 Pro.

In the 2017 study, Telsyte has provided forecasts for desktop touchscreen computers that can be used in a slate format. Please note this excludes blackboard style devices (e.g. Surface hub), or touchscreen laptops that require keyboard and mouse for operation (Telsyte considers these as laptop computers).

[1] Please note Telsyte measures Apple iPad Pro models as 2-in-1s for comparison reasons, due to having a specifically designed Apple keyboard, typically sold together.

Telsyte’s Australian Tablet Market Study 2017 is a comprehensive 113 page report which provides subscribers with:

Market sizing, platform and vendor market shares and forecasts
End user trends across devices, usage, platforms and accessories
Tablet and computer purchase intentions and loyalty
Product reviews and insights
Tablet audience estimates and strategies for media companies

In preparing this study, Telsyte used:

An online survey of a representative sample of Australians 16+ years of age conducted with 1,060 respondents in November 2016.
An online survey of a representative sample of Australian & New Zealand CIOs and IT decision makers with 302 respondents completed in August 2016. Organisations had 20-20,000+ or more employees.
Financial reports released by mobile carriers, manufacturers, retailers and service providers.
Interviews conducted with executives from mobile operators, vendors, retailers, and channel partners.
On-going monitoring of local and global market and vendor trends.

Editor’s note:

Telsyte measures sales of devices (“sell out”), not shipments or sales to retailers or carriers (sometimes called “sell-in”). Telsyte believes this is a more accurate measure of performance of products in a marketplace. Telsyte does not rely on disclosure from vendors or general assumptions made for large multinational companies that do not release local market data. Telsyte uses a comprehensive methodology that includes surveys of consumers, discussions with vendors, carriers and their partners, retailers, and financial analysts. In addition, public financial results from manufacturers and carriers are used. Telsyte tests a wide range of products in real life usage scenarios and conducts satisfaction and repeat purchase surveys with large and representative samples of Australian smart device users. Telsyte is a pioneer in measuring and reporting tablet sales in Australia and has been providing insights on tablet device since 2010.

Please note this study was formerly titled “Australian Media tablet market study”