Story image

IDC: SaaS makes up lion’s share of Aussie cloud service revenue

05 Jul 2019

Public cloud services vendor revenue grew by 30.6% year-on-year (YoY) in 2018 and revenue reached $4.01 billion, according to IDC Australia's public cloud services tracker.

Software-as-a-service (SaaS) revenue continued to capture the lion's share of Australian public cloud services revenue in 2018. 

SaaS revenue accounted for 65.8% of the total Australian public cloud services revenue in 2018.

"Australian organisations are seeking solutions to remain competitive in today's digital economy,” IDC A/NZ IT services market analyst Chayse Gorton says.

“The high percentage of SaaS revenue reflects that SaaS solutions fit the bill."

For example, adopting a SaaS solution can provide organisations access to the latest technologies and reduce internal resources required as the applications maintenance and the infrastructure on which it runs is managed by the solution provider.

In Australia, approximately 58% of organisations have implemented a SaaS solution.

Data security, along with brand trust, stand out as being among the most critical attributes that SaaS buyers seek.

However, approximately 13% of Australian organisations are not currently interested in deploying a SaaS solution. 

This relates to the investment that Australian organisations have poured into legacy applications. 

"Rather than making a jump to SaaS, Australian organisations often wait until existing applications come to the end of their life," Gorton adds.

Organisations are also aware that deployed SaaS solutions can become sticky. 

SaaS applications often require complex integrations with on-premise software to avoid information silos across the cloud and on-premise. 

This means the organisation cannot quickly or cheaply switch even if a more innovative SaaS application appears.

IDC expects that over time organisations will utilise SaaS to replace custom applications. SaaS providers must consider how to attain a favourable market position. 

It recommends that providers communicate how adopting their SaaS solution will help to increase market competitiveness while maintaining a strong posture on data security.

Conversely, IDC recently pointed out that across Australia and New Zealand (A/NZ), while over 70% of organisations are allocating more than 10% of their spending on technology associated with innovation and workspace modernisation, only 17% of A/NZ organisations say that they are better than their peers when it comes to attracting and retaining talent and developing digital skills. 

This demonstrates that most businesses are struggling to distinguish themselves. What makes matters worse, only a quarter are in the process of transforming work culture and workspace in order to attract and retain talent, with 38% of A/NZ businesses planning workspace transformation in the next few years.

Story image
08 Oct
McAfee introduces new threat visibility and prioritisation feature
MVISION Insights will provide the analytics to enable organisations to recognise the threats they will need to take action against, and threats that could potentially impact them in the future.More
Story image
09 Oct
Avaya launches UC and CC subscription program
Avaya IX Subscription gives customers the flexibility to scale consumption of Avaya’s contact center and unified communications solutions based on their needs.More
Story image
23 Sep
Gartner - The Future of Enterprise Data Centers, What’s Next?
Traditional on-premises data center models must evolve to play a role in modern enterprise information management.More
Story image
04 Oct
Microsoft training program tackles under-representation in IT
Microsoft says that the course is suitable for those with an interest in IT including school leavers, recent graduates, those looking to change careers, women returning to work, people from cultural and linguistically diverse backgrounds, indigenous people and people living with a disability.More
Story image
10 Oct
Australian organisations dominate global Boomi awards
Anglicare Southern Queensland, University of Melbourne, ORIX Australia and Flinders University win top honours for initiatives based on Boomi.More
Story image
14 Oct
Okta launches offerings for threat detection and remediation
UserInsight introduces suspicious activity reporting for end users, and HealthInsight brings customised, dynamic security best practice recommendations for administrators.More