ANZ Organizations Spend More on Software: IDC


With COVID-19 dramatically increasing the pace of innovation, the start of 2021 saw a strong rebound in software spending across ANZ. According to IDC’s Worldwide Semiannual Software Tracker, 1H2021, ANZ’s total software market reached US $ 7.5 billion, posting double-digit annual growth in both countries.

It grew 20.6% year-on-year in Australia and 20.4% in New Zealand in the first half of 2021. More and more organizations are embarking on digitization and taking advantage of digital technologies. It’s not just about staying afloat, but also promoting the journey and support for customers, employees and partners.

ANZ organizations continue to invest in cloud services to increase business competitiveness, efficiency, resilience and support innovation. As of 1H2021, cloud adoption saw a strong annual increase of 31%, with cloud revenue now accounting for 45% of the total ANZ software market.

Not surprisingly, the collaborative applications market experienced the strongest annual growth (49%) to reach US $ 257.8 million across ANZ’s software market as a whole. Companies continue to invest heavily in conferencing and team collaboration applications to support productivity, effective communications with customers and partners, and also very important – to promote engagement and a sense of belonging among employees in a new hybrid environment.

Artificial intelligence platforms recorded the second largest year-on-year increase, growing 35% across ANZ, reaching $ 111.5 million. This rapid growth indicates a strong demand from ANZ organizations to modernize and streamline core business processes.

The implementation of AI software services and intelligent knowledge discovery tools is on the rise to support decision making, forecasting, and to improve business outcomes.

“In an increasingly digital world, an abundance of customer and business data is fueling wider adoption of AI platforms,” said Anastasia Antonova, senior market analyst at IDC Australia / New Zealand.

“To stay on top of the game and meet individual customer needs, ANZ organizations are investing in intelligent process automation tools and leveraging AI capabilities to reorganize business processes, improve data analytics. customers and business, supporting decision-making and forecasting, and as a result, ensuring a thriving customer experience, ”continues Antonova.

The integration and orchestration middleware software market recorded the third highest annual growth of 31% in Australia and New Zealand, reaching US $ 164.6 million in 1H2021.

As the world has seen over the past two years, COVID-19 has massively accelerated digital and innovative initiatives, leading millions of businesses to explore and adapt to a new reality, where digital comes first. .

This strong growth in integration software is largely due to legacy modernization, hybrid integration, workflow / process automation, and API-based innovation initiatives.

As business requirements change rapidly, requiring more interconnectivity and innovation with less maintenance, IDC expects demands for API integration and management software to continue their strong growth trajectory in the second half of the year. 2021 and beyond.

IDC predicts increased adoption of cloud and digital technologies beyond 2021 across ANZ, as organizations continue to reinvent their current business processes to enable future growth, resilience, agility and competitiveness at the digital age.


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