Software spending in Australia and New Zealand (ANZ) crossed the $ 13 billion mark through 2020, posting a 7% jump from the previous year – according to a new report from the company. business information and consulting International Data Corporation (IDC).
One small problem: Covid-19 and the resulting economic crisis weighed on spending across all business segments, and ANZ’s software spending slowed to 3% year-on-year growth in the first half of 2020 The second half of the year saw technology play a crucial role in the recovery business – bringing software spending down to a healthy 12% growth rate from the end of 2019.
“This is a strong indicator that ANZ organizations are continuing their digital transformation initiatives to address the weaknesses uncovered by the Covid-19 pandemic, strengthen the resilience of businesses and invest in the next normal,” noted Anastasia Antonova , senior market analyst at IDC ANZ.
Examples abound of how software is boosting life and business after the pandemic. Companies looking for cost reduction, speed and agility in response to rapidly changing market conditions have turned to the cloud, bringing public cloud deployment to 41% of total software revenue, from 35 % in 2019.
The shift to remote working and education – long term in some cases – has resulted in a 32% increase in spend on collaborative technologies like Zoom, Teams, Slack, and more. Intelligence, data analytics and robotics have taken on new importance among businesses – as they brace themselves for high resilience and fierce competitiveness.
“Companies are moving towards the agile and adaptive operating model,” said John Feng, fellow senior market analyst at IDC at ANZ. “Businesses need AI-enhanced, data-driven decision making and reliable, integrated, cross-departmental data sources for a solid foundation to then build subsequent processes.
Such advanced technology will strengthen the back-end against the turbulence induced by a pandemic. Another Covid-19 product is a more insightful and demanding consumer than ever before. Companies have realized that a memorable customer experience will be worth its weight in gold in the new normal – making the difference between competitiveness and obscurity.
According to the IDC report, ANZ’s investments in customer relationship management applications – such as Salesforce – grew 13% in the second half of 2020. “The associated current, clean, consistent and compliant customer data to AI-based technology are essential for the future. looking for organizations to transform customer relationships and foster customer loyalty and trust, ”said Antonova.
The SME market
And it’s not just large companies that are leading the charge in software spending. A separate IDC survey conducted earlier this year found that more than half of ANZ’s small and medium-sized enterprises (SMEs) plan to increase their technology spend by at least 10% this year – with some predicting an increase of more than 20%. Another quarter plans to keep spending at a constant level, with a handful of others – just over 10% – cutting back on their investments.
According to Chris Morris, IDC Asia-Pacific partner, these numbers paint a picture of survival. “The impacts of lockdowns and work-from-home directives have not only delayed projects or initiatives, but also exposed SMEs’ gaps in connectivity, support, security and supply. The business resilience of these SMBs was tested as their IT systems adapted to a new operating environment. “