Cybersecurity tops tech priorities for Australian firms

Cybersecurity has retained its position as the top technology investment priority for Australian organisations for the third consecutive year, according to Datacom's fifth Annual Cloud Report. Despite this focus, less than 20% of Australian businesses surveyed believe they have allocated a 'sufficient budget investment' to meet their cybersecurity goals, even though it continues to receive the largest portion of their technology spend.

The report, which surveyed over 700 organisations across Australia and New Zealand, highlights that budget constraints remain the biggest obstacle for Australian businesses in achieving their cybersecurity ambitions. Many organisations are struggling to balance the cost of necessary security measures with broader financial limitations, creating a gap between their security needs and the resources available to meet them.

In terms of strategic priorities, growth continues to lead for the second year in a row, with many businesses focusing on expanding their operations. However, last year's priorities of employees and innovation have been replaced by cost management and customer acquisition. This shift reflects the increasing pressure on organisations to manage expenses while attracting new customers in a challenging economic climate.

Mike Walls, Director – Cloud at Datacom, emphasised the importance of effective cloud strategies in addressing both security and growth challenges. 'This reflects a growing understanding that cloud is a new mode of operating rather than just a destination. If organisations get their platforms and cloud strategy right, the foundation is there for every other aspect of their business, including better security and future growth,' said Walls. His comments highlight the role of cloud infrastructure in supporting businesses' long-term security and operational goals.

The report also indicates that Australian organisations are increasingly adopting hybrid cloud models, with a flexible approach to placing workloads where they perform best. However, only 33% of the surveyed businesses have a formal hybrid cloud strategy in place, suggesting that many are yet to fully commit to this approach. Despite this, the hybrid cloud model is being used to balance performance, efficiency, and cost-effectiveness in a bid to improve overall business outcomes.

Automation and DevOps have emerged as new challenges for Australian businesses, appearing in the top five issues for the first time since the research began. Alongside budget constraints, security, and the recruitment and retention of skilled staff, these areas are now seen as critical to maintaining competitiveness and operational efficiency.

In terms of future investment, over 40% of Australian organisations expect to increase spending on cloud computing over the next 12 months. Other areas that are expected to dominate IT budgets include artificial intelligence (AI) and continued cybersecurity investment. These findings suggest that businesses are looking to technology to drive both immediate and long-term benefits, particularly in areas that can enhance security, automation, and operational efficiency.

The report concludes that while cybersecurity and cloud strategies remain central to Australian organisations' technology investments, budgetary pressures continue to present a significant barrier. As businesses seek to manage costs and focus on growth, the challenge will be to ensure that security investments are not compromised in the process.