IDC: Big jump in software spending this year
The pivot to working from home and strong uptake of cloud computing and artificial intelligence platforms led to a 20.4% jump in software spending this year.
IDC Research's Semiannual Software Tracker estimates the Australian and New Zealand software market reached US$7.5 billion in value in the first half of 2021, with Australian spending growing (20.6%) at almost the exact rate as New Zealand.
Kiwi organisations invested heavily in cloud services, which experienced 31% growth, year on year, even ahead of the arrival of local hyperscale data centres that are being built by Microsoft and AWS.
Cloud revenues actually represent 45% of the ANZ software market, according to IDC. The strongest individual category of growth in the first six months of the year was collaborative applications, which became the centre of the working experience for millions of people across Australasia. Spending on conferencing and team collaboration applications jumped 49%, to reach US$257.8 million across the two countries.
Spending on AI platforms reached US$111.5 million.
"In an increasingly digital-first world, an abundance of customer and business data fuels wider adoption of AI platforms," said Anastasia Antonova, senior market analyst at IDC ANZ.
"To stay on top of the game and meet individual customer needs, organisations across ANZ invest in intelligent process automation tools and leverage AI capabilities to revamp operational processes, improve customer and business data analysis, support decision-making and forecasting, and, as a result, ensuring flourishing customer experience."
The "integration and orchestration middleware" category also grew strongly - up 31%, as organisations needed to modernise their legacy systems to adapt to the increased need to operate in the digital world during the pandemic.
IDC expects demand for integration and API (application programming interface) management software to continue to grow strongly as a result.
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